A level business edexcel economic influences

If the UK Pound increases in value compared to other currencies, it has

• depreciated

• appreciated

A UK exporter would benefit from :

• a stronger pound £

• a weaker pound £

The Consumer Prices Index (CPI) measures the rate of :

• visits to shops

• online sales

• inflation

• interest repayments

If Inflation rises by 5% and average incomes (wages) rise by 3% then :

• the real rate of inflation = 8%

• the real rate of inflation = 3%

• the real rate of inflation = 2%

The Business Cycle describes :

• a popular form of transport to the office

• up and downs of interest rates

• up and downs of economic growth

• up and downs of inflation rate

The Business Cycle measures :

• GDP

• CPI

• OCG

• GPD

GDP =

• Great Decline Pending

• Gather Data Patiently

• Gross Domestic Purchases

• Gross Domestic Product

The Recovery (upturn) phase =

• 
• 
• 

The Boom phase =

• 
• 
• 

A business can pass-on the extra cost of inflation, by raising prices if :

• demand is price elastic

• demand is price inelastic