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Paper 2 iAS MCQ

Quiz by Koen De Mulder

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5 questions
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  • Q1

    The short-run Phillips curve illustrates a possible trade-off between

    inflation and income inequality

    inflation and unemployment

    economic growth and income inequality

    economic growth and protection of the environment

    30s
  • Q2

    Ghana’s rate of economic growth increased from 3.6% in 2016 to 8.5% in 2017.

    Which one of the following is a likely result of this increase in the rate of economic growth?

    An increase in unemployment

    A decrease in tax revenues

    An increase in living standards

    A decrease in investment

    30s
  • Q3

    The UK Government is spending £56 billion on building HS2, a high-speed railway network.

    Which one of the following is also an injection into the circular flow of income?

    An increased spending on imports

    An increased spending on exports

    Increased levels of savings

    Increased income tax receipts

    30s
  • Q4

    In 2017 a fall in mining and manufacturing production led to the Brazilian economy operating below its productive potential.

    Which one of the following is most likely to be associated with a negative output gap?

    High unemployment

    An increase in wellbeing

    An increase in house prices

    High business confidence

    30s
  • Q5
    30s

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