Question 1

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

Accepted Answer

inflation and unemployment

Answer

inflation and income inequality

Answer

economic growth and income inequality

Answer

economic growth and protection of the environment

Question 2

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?

Accepted Answer

An increase in living standards

Answer

An increase in unemployment

Answer

A decrease in tax revenues

Answer

A decrease in investment

Question 3

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?

Accepted Answer

An increased spending on exports

Answer

An increased spending on imports

Answer

Increased levels of savings

Answer

Increased income tax receipts

Question 4

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?

Accepted Answer

High unemployment

Answer

An increase in wellbeing

Answer

An increase in house prices

Answer

High business confidence

Question 5

Accepted Answer

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