Crowdly

Giving grants to firms to invest in up-to-date equipment

Which of the following is an example of a supply-side policy to reduce inflation?

Raising interest rates to reduce borrowing

Cutting government spending to reduce aggregate demand

Increasing VAT on consumer goods

Match each type of inflation with its main cause.

Demand-pull inflation

Hyperinflation

Cost-push inflation

Layoffs during a recession

Which TWO are examples of structural unemployment?

Redundancies caused by automation in manufacturing

Loss of jobs in coal mining due to a shift to renewable energy

Seasonal job losses in tourism

Increased uncertainty discouraging investment

Which of the following are examples of injections into the circular flow of income?

Government expenditure

Which THREE of the following are common costs of inflation?

Redistribution of income away from those on fixed incomes

Increased value of savings

Worsening of the balance of trade

Exports will fall and imports will rise

If a country experiences high inflation compared to its trading partners, what is the MOST likely impact on its exports and imports?

Both exports and imports will fall

Exports will rise and imports will fall

Both exports and imports will rise

Unemployment that rises during a recession due to falling aggregate demand

Which of the following BEST describes demand-deficient (cyclical) unemployment?

Unemployment that varies with the seasons

Unemployment that results from workers changing jobs

Unemployment caused by technology replacing workers