External Inflation and Its Impact on the UK's Macroeconomic Performance

External Inflation and Its Impact on the UK's Macroeconomic Performance

Assessment

Interactive Video

Business

11th Grade - University

Hard

Created by

Quizizz Content

FREE Resource

The video explores external inflation's impact on the UK economy, focusing on how commodity prices and inflation in other countries influence macroeconomic performance. It discusses the effects of factor costs on inflation, growth, and trade, highlighting the volatility of commodity prices. The video also examines the role of exchange rates in maintaining competitiveness and provides a comparative analysis of the UK's economic conditions relative to other countries.

Read more

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is meant by 'external inflation' in the context of the UK economy?

Inflation caused by domestic factors within the UK

Inflation that is controlled by the UK government

Inflation that only affects the UK's financial sector

Inflation that originates from other countries and affects the UK

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do commodity prices influence the UK's macroeconomic performance?

They can cause shifts in short-run aggregate supply and demand

They only influence the UK's employment rates

They only affect the UK's long-term economic growth

They have no impact on the UK's economy

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the trend in oil prices following the global financial crisis?

Oil prices increased steadily

Oil prices decreased continuously

Oil prices remained stable

Oil prices rose sharply and then fell significantly

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the effect of a factor price fall on the UK's economy?

It causes a long-term decrease in aggregate supply

It results in a positive short-term impact on growth and unemployment

It leads to higher inflation and unemployment

It has no impact on the UK's economy

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do changes in factor prices affect the UK's trade balance?

They only influence the UK's export levels

They have no effect on trade

They can alter the competitiveness of UK exports and imports

They only affect the UK's import levels

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role do exchange rate changes play in the UK's competitiveness?

They only affect the UK's domestic prices

They lead to a permanent change in competitiveness

They can cushion the effects of price disadvantages

They have no impact on competitiveness

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens if the UK's inflation rate is higher than that of its competitors?

The UK's trade balance remains unchanged

The UK sees a decrease in exports and an increase in imports

The UK experiences a positive aggregate demand shift

The UK becomes more competitive

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?