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Economics
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If, over the past year, nominal GDP has risen by 5% and inflation has been 2%, which of the following is true?
Given the following data about an economy (in €bn), what is the level of national income?
| Component | €bn |
|---|---|
| GDP (at market prices) | 600 |
| Taxes paid by firms | 50 |
| Subsidies received by firms | 20 |
| Personal taxes | 70 |
| Benefits | 30 |
A positive output gap means the economy is producing above its normal capacity.
If, over the past year, nominal GDP has risen by 5% and inflation has been 2%, which of the following is true? Select all that apply
Which one of the following is definitely true?
| Component | €bn |
|---|---|
| GDP (at market prices) | 600 |
| Taxes paid by firms | 50 |
| Subsidies received by firms | 20 |
| Personal taxes | 70 |
| Benefits | 30 |
The rate of inflation is defined as:
Which of the following are examples of injections into the circular flow of income? Choose all that apply.
A fall in a country's exchange rate (e.g., from $1.60 to $1.50) is most likely to:
Which of the following best defines potential economic growth?