2.1 AND 2.2

Which measure of inflation includes mortgage payments?

• CPI

• GDP

• ILO

• RPI

Which of the following is not a LEAKAGE from the circular flow?

• Investment

• Savings

• Taxation

• Imports

Index numbers are compared to a base year which equals....

• 1

• 100

• 10

• 1000

Which of the following is not a component of the current account of the BOP?

• GOODS BALANCE

• SERVICES BALANCE

• FDI

• PRIMARY INCOME BALANCE

AD=

• C+I+G+X-M

• C+I-G-X-M

• C-I+G+X-M

• C-I-G-X-M

The wealth effect occurs when.....

• house prices fall

• stock prices fall

• house prices rise

• share prices rise

Which of the following would not be a characteristic of high animal spirits

• growth

• rising incomes

• job security

• recession

Which of the following increased during lockdown?

• consumer spending

• investment

• trade

• govt expenditure

An increase in the price level means

• deflation

• disinflation

• inflation

• growth

A decrease in the rate of inflation means....

• deflation

• disinflation

• inflation

• growth