Macroeconomics Revision

Which of the following flows is not a Withdrawal?

• Taxes

• Savings

• Export Receipts

• Import Payments

What does a Gini Coefficient show?

• The number of millionaires in a country

• The level of inequality in a society

• The amount of unemployment

• The need for Government to increase taxes

Why is it unsustainable to have Economic Growth above 4.5%

• It leads to large increases in Real GDP

• It leads to large increases in the Gini Coeffient

• It leads to large increases in Unemployment

• It leads to large increases in Inflation

Why does the Reserve Bank cut interest rates?

• To increase the rate of inflation

• To slow the economy down

• Because the Economy is in the upswing stage of the Trade Cycle

• Because it leads to people spending more money

The lowest point on the trade cycle is known as the:

What will reduce the current account deficit?

The COVID crisis has led to

• no change to country's economies

• lower government spending on benefits

• most countries entering into the trough stage of the trade cycle

• lower unemployment

What is the Gini Coefficient of a country with low levels of inequality

• 0.00

• 0.20

• 0.40

• 0.60

The main circular flow contains two money flows. What are they called?

Governments have an important stabilisation role in the Economy.

• True

• False