Macroeconomic objective conflicts 20th May

Which of the following are not examples of macroeconomic objectives?

• Stable economic growth, low inflation, low unemployment

• Sustainable current account position, sustainable fiscal position, more equal income distribution

• Reducing pollution, reducing waste, increasing life expectancy

• High economic growth, no unemployment, reducing average price levels

Which of the following is not a consequences of rising unemployment?

• Increased illness through psychological stress

• Upward pressure on average wage levels

• Higher rates of emigration, causing reductions in productive capacity.

• Increased crime rates.

If the inflation rate was 5% last year and 3% this year, what has occurred?

• Demand-pull inflation

• Deflation

• Disinflation

• Inflation

What is the name given to the situation characterized by high inflation rates, increases in unemployment rates and slow or negative economic growth?

• Deflation

• Recession

• Trough

• Stagflation

What is likely to happen if the population growth rate is greater than GDP growth rate.

• Average incomes will rise

• Average incomes will fall

• Real growth rates will rise

• There will be no direct impact on average incomes

What is the most likely Macroeconomic Objective Conflict between GDP Growth and Stable inflation?

• Unemployment will rise

• Environmental issues

• Prices are likely to go up with growth

• Distribution of wealth

Which of the following objectives might conflict with the objective of economic growth?

• Sustainable Environment

• Stable inflation

• High employment levels

• Distribution of Wealth

Why might Economic Growth and Income Equality have conflicting elements?

• Businesses may grow but not be able to offer increased job opportunities, especially in the technological age.

• Businesses may grow and become more profitable, however with out a progressive tax system, the wealth may not trickle down into society.

• Economic Growth may lead to inflation

• Economic growth may lead to unemployment

Which Economic model aims to exam the relationship between inflation and unemployment?

• The Gini Coefficient

• The Labour/Wage rate diagram

• The Short - Run Phillips Curve

• The PPC

What is another word for saying that a sacrifice has to be made when when there are two conflicting macroeconomic objectives?

• Scarcity

• Trade - off

• Opportunity cost

• Choice