Unit 2 Exam Revisions

Distinguish between Microeconomics and Macroeconomics

Describe two examples of the investment component of GDP

Identify the GDP formula.

Explain how the money flow from government to firm in the circular flow model?

Money flows from households to foreign economies when households pay for exports

• True

• False

Explain the likely effect of Country A's consumption, government spending and exports component of GDP if the trading partners are having a recession.

List the three limitations of GDP as a measurement of economic well-being.

Distinguish between comparative advantage and absolute advantage.

Calculate the inflation rate for the year 2024/25.

List 3 negative consequences of high inflation.