An increase in imports of consumer goods is most likely to be caused by a
rise in household income.
1 of 6
Real incomes rise whenever
nominal incomes rise by more than the price level.
2 of 6
A current account deficit on the UKs balance of payments means that generally
the total value of imports exceeds the total value of exports.
3 of 6
The economy is currently operating at its normal capacity level of output. It is estimated that the long-run trend rate of growth of the economy is around 2.5% per annum. In the coming year, it is expected that inflation will be 4% per annum and money nat
Unemployment will increase and the growth of the economy will be below its trend rate
4 of 6
All other things being equal, when an increase in exports leads to a larger increase in national income, this illustrates
the operation of the multiplier.
5 of 6
In the short run, a decrease in aggregate demand is most likely to result in a reduction in
the balance of payments deficit on the current account.
6 of 6
Other cards in this set
Card 2
Front
Real incomes rise whenever
Back
nominal incomes rise by more than the price level.
Card 3
Front
A current account deficit on the UKs balance of payments means that generally
Back
Card 4
Front
The economy is currently operating at its normal capacity level of output. It is estimated that the long-run trend rate of growth of the economy is around 2.5% per annum. In the coming year, it is expected that inflation will be 4% per annum and money nat
Back
Card 5
Front
All other things being equal, when an increase in exports leads to a larger increase in national income, this illustrates
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