Conflicts Between Macroeconomic Policy Objectives (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What do economists call it when achieving one policy objective makes another harder to achieve?
What do economists call it when achieving one policy objective makes another harder to achieve?
Policy conflicts or trade-offs
Which conflict relates to external objectives in UK macroeconomic policy?
Which conflict relates to external objectives in UK macroeconomic policy?
Employment/growth vs balance of payments
What is typically associated with a positive output gap?
What is typically associated with a positive output gap?
Low unemployment and rising inflation
What characterises a negative output gap?
What characterises a negative output gap?
High unemployment and low inflation
What is the Phillips curve?
What is the Phillips curve?
A statistical relationship
In the demand-pull explanation, what causes movement up the Phillips curve?
In the demand-pull explanation, what causes movement up the Phillips curve?
Excess demand
What shape is the long-run Phillips curve according to free-market economists?
What shape is the long-run Phillips curve according to free-market economists?
Vertical
What is denoted by the symbol ?
What is denoted by the symbol ?
Natural rate of unemployment
What effect do successful supply-side policies have on the long-run Phillips curve?
What effect do successful supply-side policies have on the long-run Phillips curve?
Shift it leftward
What causes the short-run Phillips curve to shift outwards?
What causes the short-run Phillips curve to shift outwards?
Higher expected inflation rates