CAIE A-Level Economics 10 Government Macroeconomic Intervention Question Bank

Economic growth raises domestic consumption, leaving very little to sell to overseas consumers.

Economic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.

Economic growth raises incomes and leads to rising demand for foreign goods.

Economic growth results in rising requirements of inputs from other countries.

the relationship between economic growth and employment

the relationship between inequality and income per capita

the relationship between inflation and unemployment

the relationship between prices and national income

to improve sustainability

to provide public goods

to reduce the power of trade unions

to subsidise the electricity supply industry

an improvement in the current account balance

an increase in price competitiveness

an increase in export revenue

an increase in import expenditure

an automatic stabiliser

crowding out

the accelerator

the substitution effect

high growth and low inflation

high growth and low unemployment

low inflation and low unemployment

low unemployment and a balance of trade surplus

the amount of tax revenue received at each tax rate

the impact on the distribution of income after tax rates rise

the rise in inflation following a fall in unemployment due to a cut in income tax

the rise in poverty due to a rise in the basic rate of income tax