Macroeconomic indicators 4.2.1.2

Question 1

What is GDP?

Answer 1

A measure of the output ,income or expenditure of the economy in a given time period.

Question 2

What affect does a weaker pound have on exports and imports?

Answer 2

weaker pound makes imports dearer and exports cheaper (WPIDEC)

Question 3

What is real GDP?

Answer 3

figures are adjusted to take into account the affects of inflation

Question 4

What affect does the UK economy growing have on the BoP position?

Answer 4

Consumer incomes will rise, consumers and businesses demand more imported goods, which will make the BoP position deteriorate

Question 5

What are the economic objectives?

Answer 5

Low inflation, sustainable economic growth, low unemployment, stable/improve BoP and stable/improve budget position

Question 6

How does the government distribute money from wealthy and high income earners to lower earners?

Answer 6

Welfare benefits

Question 7

What is GDP per capita?

Answer 7

GDP per person (total GDP divided by the population)

Question 8

What is a recession?

Answer 8

When economic growth is negative for two consecutive quarters, means real output is falling

Question 9

What is an exchange rate?

Answer 9

the value of one currency expressed in terms of another currency