Practise distinguishing actual and potential growth, interpreting output gaps and cycles and evaluating policies for sustained, inclusive and environmentally viable expansion.
The table shows real GDP and unemployment for an economy.
What can be concluded from the data?
Demand-pull inflation is likely to increase.
Potential output is likely to increase.
The balance of payments deficit is likely to increase.
The budget deficit is likely to increase.
The table shows the annual percentage economic growth rates of three countries from 2012 to 2018.
What can be concluded from the table?
Brazil was in the downturn of its trade cycle in 2015.
Japan's real GDP was at its smallest in 2014.
Spain experienced the worst recession of the period.
Spain was in the downturn of its trade cycle in 2014.
Which government policy is least likely to promote inclusive economic growth?
increasing the national minimum wage
investment in transport and infrastructure
legislation reducing the power of trade unions
using taxes and transfer payments to redistribute income