33:I[196793,["/_next/static/chunks/1k7mhi2mpecuo.js?dpl=nogit-1791040192","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791040192","/_next/static/chunks/0zcakt1-boe_f.js?dpl=nogit-1791040192","/_next/static/chunks/0yuh9obhrf6py.js?dpl=nogit-1791040192","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791040192","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791040192","/_next/static/chunks/13_9hjun60hj-.js?dpl=nogit-1791040192","/_next/static/chunks/2bxmml65nu49g.js?dpl=nogit-1791040192","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791040192","/_next/static/chunks/1dxqjl8rol78e.js?dpl=nogit-1791040192","/_next/static/chunks/2gjyu-jrwu-fu.js?dpl=nogit-1791040192","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791040192","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791040192","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791040192","/_next/static/chunks/19ijf68pshdcn.js?dpl=nogit-1791040192","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791040192","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791040192","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791040192","/_next/static/chunks/2wqr_qa524410.js?dpl=nogit-1791040192","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791040192","/_next/static/chunks/1u0-4r35vefxo.js?dpl=nogit-1791040192","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791040192","/_next/static/chunks/2tp0p_5fc9uvf.js?dpl=nogit-1791040192","/_next/static/chunks/26m8evoiza4ec.js?dpl=nogit-1791040192","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791040192","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791040192","/_next/static/chunks/1_p5v4n7583_r.js?dpl=nogit-1791040192","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791040192","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791040192","/_next/static/chunks/32egb6-l4niwe.js?dpl=nogit-1791040192","/_next/static/chunks/1-n779e9yi4l0.js?dpl=nogit-1791040192","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791040192","/_next/static/chunks/2a2shu5fsom14.js?dpl=nogit-1791040192","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791040192","/_next/static/chunks/3795z2r1x82vp.js?dpl=nogit-1791040192","/_next/static/chunks/1s6j_7_p0ugo9.js?dpl=nogit-1791040192","/_next/static/chunks/33z1jiacs_jrz.js?dpl=nogit-1791040192","/_next/static/chunks/2leuonyicz6gk.js?dpl=nogit-1791040192","/_next/static/chunks/2rsljb77wejav.js?dpl=nogit-1791040192","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791040192","/_next/static/chunks/12za0kzs9m-b_.js?dpl=nogit-1791040192","/_next/static/chunks/1p8omo2zft7gp.js?dpl=nogit-1791040192","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791040192","/_next/static/chunks/34lw53983v4li.js?dpl=nogit-1791040192","/_next/static/chunks/3pb98vwyysfzu.js?dpl=nogit-1791040192","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791040192","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791040192","/_next/static/chunks/1hnuhh5t7cfaj.js?dpl=nogit-1791040192","/_next/static/chunks/2uzea6b173htc.js?dpl=nogit-1791040192","/_next/static/chunks/2s8s2tbh7ie54.js?dpl=nogit-1791040192","/_next/static/chunks/2u1q43gtwo_9f.js?dpl=nogit-1791040192","/_next/static/chunks/12bb60zmzpft7.js?dpl=nogit-1791040192","/_next/static/chunks/29gkme7_x75oo.js?dpl=nogit-1791040192","/_next/static/chunks/3wqp-h5xnebw9.js?dpl=nogit-1791040192","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791040192","/_next/static/chunks/1csf-qhroertu.js?dpl=nogit-1791040192","/_next/static/chunks/1d7tjnrc0fv5y.js?dpl=nogit-1791040192","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791040192"],"Gingerbread"] 35:I[647935,["/_next/static/chunks/1k7mhi2mpecuo.js?dpl=nogit-1791040192","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791040192","/_next/static/chunks/0zcakt1-boe_f.js?dpl=nogit-1791040192","/_next/static/chunks/0yuh9obhrf6py.js?dpl=nogit-1791040192","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791040192","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791040192","/_next/static/chunks/13_9hjun60hj-.js?dpl=nogit-1791040192","/_next/static/chunks/2bxmml65nu49g.js?dpl=nogit-1791040192","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791040192","/_next/static/chunks/1dxqjl8rol78e.js?dpl=nogit-1791040192","/_next/static/chunks/2gjyu-jrwu-fu.js?dpl=nogit-1791040192","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791040192","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791040192","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791040192","/_next/static/chunks/19ijf68pshdcn.js?dpl=nogit-1791040192","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791040192","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791040192","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791040192","/_next/static/chunks/2wqr_qa524410.js?dpl=nogit-1791040192","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791040192","/_next/static/chunks/1u0-4r35vefxo.js?dpl=nogit-1791040192","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791040192","/_next/static/chunks/2tp0p_5fc9uvf.js?dpl=nogit-1791040192","/_next/static/chunks/26m8evoiza4ec.js?dpl=nogit-1791040192","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791040192","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791040192","/_next/static/chunks/1_p5v4n7583_r.js?dpl=nogit-1791040192","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791040192","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791040192","/_next/static/chunks/32egb6-l4niwe.js?dpl=nogit-1791040192","/_next/static/chunks/1-n779e9yi4l0.js?dpl=nogit-1791040192","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791040192","/_next/static/chunks/2a2shu5fsom14.js?dpl=nogit-1791040192","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791040192","/_next/static/chunks/3795z2r1x82vp.js?dpl=nogit-1791040192","/_next/static/chunks/1s6j_7_p0ugo9.js?dpl=nogit-1791040192","/_next/static/chunks/33z1jiacs_jrz.js?dpl=nogit-1791040192","/_next/static/chunks/2leuonyicz6gk.js?dpl=nogit-1791040192","/_next/static/chunks/2rsljb77wejav.js?dpl=nogit-1791040192","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791040192","/_next/static/chunks/12za0kzs9m-b_.js?dpl=nogit-1791040192","/_next/static/chunks/1p8omo2zft7gp.js?dpl=nogit-1791040192","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791040192","/_next/static/chunks/34lw53983v4li.js?dpl=nogit-1791040192","/_next/static/chunks/3pb98vwyysfzu.js?dpl=nogit-1791040192","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791040192","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791040192","/_next/static/chunks/1hnuhh5t7cfaj.js?dpl=nogit-1791040192","/_next/static/chunks/2uzea6b173htc.js?dpl=nogit-1791040192","/_next/static/chunks/2s8s2tbh7ie54.js?dpl=nogit-1791040192","/_next/static/chunks/2u1q43gtwo_9f.js?dpl=nogit-1791040192","/_next/static/chunks/12bb60zmzpft7.js?dpl=nogit-1791040192","/_next/static/chunks/29gkme7_x75oo.js?dpl=nogit-1791040192","/_next/static/chunks/3wqp-h5xnebw9.js?dpl=nogit-1791040192","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791040192","/_next/static/chunks/1csf-qhroertu.js?dpl=nogit-1791040192","/_next/static/chunks/1d7tjnrc0fv5y.js?dpl=nogit-1791040192","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791040192"],"RecordResourceResume"] 36:I[830476,["/_next/static/chunks/1k7mhi2mpecuo.js?dpl=nogit-1791040192","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791040192","/_next/static/chunks/0zcakt1-boe_f.js?dpl=nogit-1791040192","/_next/static/chunks/0yuh9obhrf6py.js?dpl=nogit-1791040192","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791040192","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791040192","/_next/static/chunks/13_9hjun60hj-.js?dpl=nogit-1791040192","/_next/static/chunks/2bxmml65nu49g.js?dpl=nogit-1791040192","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791040192","/_next/static/chunks/1dxqjl8rol78e.js?dpl=nogit-1791040192","/_next/static/chunks/2gjyu-jrwu-fu.js?dpl=nogit-1791040192","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791040192","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791040192","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791040192","/_next/static/chunks/19ijf68pshdcn.js?dpl=nogit-1791040192","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791040192","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791040192","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791040192","/_next/static/chunks/2wqr_qa524410.js?dpl=nogit-1791040192","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791040192","/_next/static/chunks/1u0-4r35vefxo.js?dpl=nogit-1791040192","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791040192","/_next/static/chunks/2tp0p_5fc9uvf.js?dpl=nogit-1791040192","/_next/static/chunks/26m8evoiza4ec.js?dpl=nogit-1791040192","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791040192","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791040192","/_next/static/chunks/1_p5v4n7583_r.js?dpl=nogit-1791040192","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791040192","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791040192","/_next/static/chunks/32egb6-l4niwe.js?dpl=nogit-1791040192","/_next/static/chunks/1-n779e9yi4l0.js?dpl=nogit-1791040192","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791040192","/_next/static/chunks/2a2shu5fsom14.js?dpl=nogit-1791040192","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791040192","/_next/static/chunks/3795z2r1x82vp.js?dpl=nogit-1791040192","/_next/static/chunks/1s6j_7_p0ugo9.js?dpl=nogit-1791040192","/_next/static/chunks/33z1jiacs_jrz.js?dpl=nogit-1791040192","/_next/static/chunks/2leuonyicz6gk.js?dpl=nogit-1791040192","/_next/static/chunks/2rsljb77wejav.js?dpl=nogit-1791040192","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791040192","/_next/static/chunks/12za0kzs9m-b_.js?dpl=nogit-1791040192","/_next/static/chunks/1p8omo2zft7gp.js?dpl=nogit-1791040192","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791040192","/_next/static/chunks/34lw53983v4li.js?dpl=nogit-1791040192","/_next/static/chunks/3pb98vwyysfzu.js?dpl=nogit-1791040192","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791040192","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791040192","/_next/static/chunks/1hnuhh5t7cfaj.js?dpl=nogit-1791040192","/_next/static/chunks/2uzea6b173htc.js?dpl=nogit-1791040192","/_next/static/chunks/2s8s2tbh7ie54.js?dpl=nogit-1791040192","/_next/static/chunks/2u1q43gtwo_9f.js?dpl=nogit-1791040192","/_next/static/chunks/12bb60zmzpft7.js?dpl=nogit-1791040192","/_next/static/chunks/29gkme7_x75oo.js?dpl=nogit-1791040192","/_next/static/chunks/3wqp-h5xnebw9.js?dpl=nogit-1791040192","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791040192","/_next/static/chunks/1csf-qhroertu.js?dpl=nogit-1791040192","/_next/static/chunks/1d7tjnrc0fv5y.js?dpl=nogit-1791040192","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791040192"],"FlashcardAccessBranch"] 37:I[315438,["/_next/static/chunks/1k7mhi2mpecuo.js?dpl=nogit-1791040192","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791040192","/_next/static/chunks/0zcakt1-boe_f.js?dpl=nogit-1791040192","/_next/static/chunks/0yuh9obhrf6py.js?dpl=nogit-1791040192","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791040192","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791040192","/_next/static/chunks/13_9hjun60hj-.js?dpl=nogit-1791040192","/_next/static/chunks/2bxmml65nu49g.js?dpl=nogit-1791040192","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791040192","/_next/static/chunks/1dxqjl8rol78e.js?dpl=nogit-1791040192","/_next/static/chunks/2gjyu-jrwu-fu.js?dpl=nogit-1791040192","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791040192","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791040192","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791040192","/_next/static/chunks/19ijf68pshdcn.js?dpl=nogit-1791040192","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791040192","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791040192","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791040192","/_next/static/chunks/2wqr_qa524410.js?dpl=nogit-1791040192","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791040192","/_next/static/chunks/1u0-4r35vefxo.js?dpl=nogit-1791040192","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791040192","/_next/static/chunks/2tp0p_5fc9uvf.js?dpl=nogit-1791040192","/_next/static/chunks/26m8evoiza4ec.js?dpl=nogit-1791040192","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791040192","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791040192","/_next/static/chunks/1_p5v4n7583_r.js?dpl=nogit-1791040192","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791040192","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791040192","/_next/static/chunks/32egb6-l4niwe.js?dpl=nogit-1791040192","/_next/static/chunks/1-n779e9yi4l0.js?dpl=nogit-1791040192","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791040192","/_next/static/chunks/2a2shu5fsom14.js?dpl=nogit-1791040192","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791040192","/_next/static/chunks/3795z2r1x82vp.js?dpl=nogit-1791040192","/_next/static/chunks/1s6j_7_p0ugo9.js?dpl=nogit-1791040192","/_next/static/chunks/33z1jiacs_jrz.js?dpl=nogit-1791040192","/_next/static/chunks/2leuonyicz6gk.js?dpl=nogit-1791040192","/_next/static/chunks/2rsljb77wejav.js?dpl=nogit-1791040192","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791040192","/_next/static/chunks/12za0kzs9m-b_.js?dpl=nogit-1791040192","/_next/static/chunks/1p8omo2zft7gp.js?dpl=nogit-1791040192","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791040192","/_next/static/chunks/34lw53983v4li.js?dpl=nogit-1791040192","/_next/static/chunks/3pb98vwyysfzu.js?dpl=nogit-1791040192","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791040192","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791040192","/_next/static/chunks/1hnuhh5t7cfaj.js?dpl=nogit-1791040192","/_next/static/chunks/2uzea6b173htc.js?dpl=nogit-1791040192","/_next/static/chunks/2s8s2tbh7ie54.js?dpl=nogit-1791040192","/_next/static/chunks/2u1q43gtwo_9f.js?dpl=nogit-1791040192","/_next/static/chunks/12bb60zmzpft7.js?dpl=nogit-1791040192","/_next/static/chunks/29gkme7_x75oo.js?dpl=nogit-1791040192","/_next/static/chunks/3wqp-h5xnebw9.js?dpl=nogit-1791040192","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791040192","/_next/static/chunks/1csf-qhroertu.js?dpl=nogit-1791040192","/_next/static/chunks/1d7tjnrc0fv5y.js?dpl=nogit-1791040192","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791040192"],"TopicFlashcardRunner"] 24:[["$","$L33",null,{"feature":"flashcards"}],"$L34",["$","$L35",null,{"href":"/a-level/economics/aqa/the-objectives-of-government-economic-policy/flashcards","label":"2.1.1 The objectives of government economic policy","subjectCode":"a_level_economics__aqa","surface":"flashcards"}],["$","$L36",null,{"runner":["$","div",null,{"className":"min-h-0 flex-1 overflow-hidden bg-background","children":["$","$L37",null,{"decks":[{"id":"d7c9c9d8-0c55-49a1-8d76-4f59bdcb8337","title":"2.1.1 The objectives of government economic policy Flashcards","topicId":"4cc2d8f4-1cfb-551c-b648-fe876b27e581","topicSlug":"the-objectives-of-government-economic-policy","cards":[{"id":"4d09d253-243c-4488-9bf6-29ab07a6aef8","cardType":"basic","points":3,"front":"What are the four main macroeconomic objectives of government policy?","back":"

Economic growth
Price stability
Minimising unemployment
A stable current account

","mcqOptions":[{"text":"

Economic growth
Price stability
Minimising unemployment
A stable current account

","correct":true,"explanation":"These are the four main macroeconomic objectives: increasing output, keeping inflation low and stable, maintaining high employment, and avoiding large persistent current-account imbalances."},{"text":"

Economic growth
Price stability
Maximising unemployment
A stable current account

","correct":false,"explanation":"Governments aim to minimise unemployment, not maximise it. High unemployment wastes labour resources and reduces output, incomes and tax revenue while increasing welfare costs."},{"text":"

Economic growth
Price stability
Minimising unemployment
A balanced government budget

","correct":false,"explanation":"A balanced government budget is not one of the four main macroeconomic objectives. The relevant external objective is a stable current account, which concerns international payments."},{"text":"

Economic decline
Price stability
Minimising unemployment
A stable current account

","correct":false,"explanation":"The objective is economic growth, not economic decline. Growth raises productive output and can improve living standards, whereas decline generally reduces incomes and employment opportunities."}]},{"id":"8ee03c3f-83b5-48f0-ae1f-1a04f093a799","cardType":"basic","points":2,"front":"Why does economic growth improve living standards?","back":"Rising real incomes increase households’ consumption possibilities and living standards over time.","mcqOptions":[{"text":"Rising real incomes increase households’ consumption possibilities and living standards over time.","correct":true,"explanation":"Rising real incomes increase the quantity of goods and services households can afford after allowing for inflation, so consumption possibilities and material living standards improve."},{"text":"Rising nominal incomes increase households’ consumption possibilities and living standards over time.","correct":false,"explanation":"Nominal incomes may rise only because prices have increased. Rising real incomes are required to show greater purchasing power and genuinely increased consumption possibilities."},{"text":"Falling real incomes increase households’ consumption possibilities and living standards over time.","correct":false,"explanation":"Falling real incomes reduce purchasing power, so households can generally buy fewer goods and services. Rising real incomes, after inflation, are what improve consumption possibilities."},{"text":"Rising real interest rates increase households’ consumption possibilities and living standards over time.","correct":false,"explanation":"Higher real interest rates can increase saving returns but also raise borrowing costs and do not directly measure household purchasing power. Rising real incomes provide the relevant channel."}]},{"id":"74cccc6b-0be0-434f-a114-d18bf25ffbba","cardType":"basic","points":1,"front":"Which indicators measure economic growth?","back":"Real GDP and real GDP per capita.","mcqOptions":[{"text":"Real GDP and real GDP per capita.","correct":true,"explanation":"Real GDP measures the economy’s inflation-adjusted output, while real GDP per capita also accounts for population size and is useful for comparing average output and living standards."},{"text":"Nominal GDP and nominal GDP per capita.","correct":false,"explanation":"Nominal measures include price changes, so they can rise without any increase in output. Economic growth is measured using real, inflation-adjusted GDP measures."},{"text":"Real GDP and the consumer price index.","correct":false,"explanation":"Real GDP measures inflation-adjusted output, but the Consumer Prices Index measures inflation rather than economic growth. The paired growth indicator is real GDP per capita."},{"text":"Real GDP per capita and the unemployment rate.","correct":false,"explanation":"Real GDP per capita measures average inflation-adjusted output, but the unemployment rate measures labour-market conditions. The broad output measure needed alongside it is real GDP."}]},{"id":"b8a9e700-1c7d-4a7e-88ec-f58c545eae23","cardType":"cloze","points":null,"front":"Economic growth is tracked using [ ], rather than nominal GDP.","back":"Economic growth is tracked using real GDP, rather than nominal GDP.","mcqOptions":[{"text":"real GDP","correct":true,"explanation":"Real GDP removes the effect of changing prices, allowing changes in the quantity of output to be measured. Nominal GDP can increase solely because prices have risen."},{"text":"nominal GDP","correct":false,"explanation":"Nominal GDP is measured at current prices and therefore combines changes in output with inflation. Real GDP is used to track economic growth in physical output terms."},{"text":"real GDP per capita","correct":false,"explanation":"Real GDP per capita is a useful growth and living-standards indicator, but it is not the term completing this sentence. The stated measure here is real GDP."},{"text":"the Consumer Prices Index","correct":false,"explanation":"The Consumer Prices Index measures consumer inflation, not the economy’s total output. Real GDP is the inflation-adjusted output measure used to track economic growth."}]},{"id":"50dab710-7909-4318-bd9b-4f6aade71b7c","cardType":"basic","points":2,"front":"Why does price stability matter to households and firms?","back":"

It protects the value of money.
It makes financial planning more predictable.

","mcqOptions":[{"text":"

It protects the value of money.
It makes financial planning more predictable.

","correct":true,"explanation":"Stable prices preserve money’s purchasing power and make future costs, revenues and returns easier to estimate, helping households and firms make more reliable financial decisions."},{"text":"

It increases the value of money.
It makes financial planning more predictable.

","correct":false,"explanation":"Price stability protects the value of money but does not necessarily increase it. A sustained fall in prices could increase purchasing power, but that is deflation rather than stability."},{"text":"

It protects the value of money.
It makes financial planning more profitable.

","correct":false,"explanation":"Stable prices make planning more predictable, not automatically more profitable. Profit depends on revenues, costs and demand, although predictability can reduce uncertainty for firms."},{"text":"

It reduces the quantity of money.
It makes financial planning more predictable.

","correct":false,"explanation":"Price stability concerns purchasing power and predictability, not necessarily the quantity of money in circulation. Monetary quantity can change while inflation remains stable."}]},{"id":"a80641c7-9662-4087-876f-301e466f9ec9","cardType":"cloze","points":null,"front":"The UK inflation target is [ ].","back":"The UK inflation target is 2 per cent CPI inflation.","mcqOptions":[{"text":"2 per cent CPI inflation","correct":true,"explanation":"The UK government’s inflation target is 2 per cent, measured using the Consumer Prices Index. It provides a benchmark for monetary policy decisions."},{"text":"2 per cent RPI inflation","correct":false,"explanation":"The target is measured using CPI, not RPI. The Retail Prices Index has different coverage and calculation methods and is not the UK’s official inflation-target measure."},{"text":"2 per cent GDP deflator inflation","correct":false,"explanation":"The GDP deflator measures price changes across domestically produced output, whereas the UK inflation target uses consumer prices measured by CPI."},{"text":"5 per cent CPI inflation","correct":false,"explanation":"The UK target is 2 per cent CPI inflation, not 5 per cent. A 5 per cent rate would represent inflation substantially above the government’s target."}]},{"id":"32a8ef0c-eaf5-44d9-a51c-fb82cbae92d9","cardType":"basic","points":1,"front":"What is the UK inflation target measured by?","back":"The Consumer Prices Index (CPI).","mcqOptions":[{"text":"The Consumer Prices Index (CPI).","correct":true,"explanation":"The UK inflation target is expressed using the Consumer Prices Index, which tracks changes in the price of a basket of consumer goods and services."},{"text":"The Retail Prices Index (RPI).","correct":false,"explanation":"RPI is another measure of inflation, but it is not the index used for the UK government’s official inflation target. That target is measured by CPI."},{"text":"The GDP deflator.","correct":false,"explanation":"The GDP deflator measures price changes for domestically produced output across the economy. The UK inflation target instead uses the consumer-focused CPI measure."},{"text":"The Balance of Payments Index (BPI).","correct":false,"explanation":"There is no official Balance of Payments Index used to measure the UK inflation target. The correct measure is the Consumer Prices Index, or CPI."}]},{"id":"97a6846f-e5f5-4f45-af7d-95b0a21c076d","cardType":"basic","points":2,"front":"Why does minimising unemployment matter?","back":"It uses labour more fully, avoiding lost output and the hardship of joblessness.","mcqOptions":[{"text":"It uses labour more fully, avoiding lost output and the hardship of joblessness.","correct":true,"explanation":"Lower unemployment uses available labour resources more fully, allowing greater production and income while reducing the personal and social hardship associated with being out of work."},{"text":"It uses labour more fully, avoiding higher output and the hardship of joblessness.","correct":false,"explanation":"Minimising unemployment should help create higher, not avoid higher, output because more workers contribute to production. The relevant cost of unemployment is lost output."},{"text":"It uses labour more fully, avoiding lost output and the benefits of joblessness.","correct":false,"explanation":"Joblessness generally causes hardship rather than benefits overall. Minimising unemployment reduces lost output and the financial and social difficulties associated with unemployment."},{"text":"It uses labour more fully, avoiding lost output and the pressure of employment.","correct":false,"explanation":"Employment provides income and generally reduces hardship; it is not normally described as a cost to avoid. The objective addresses lost output and the hardship of joblessness."}]},{"id":"8a6c4eb1-bdf4-41f1-b980-c2b436e47ba2","cardType":"basic","points":2,"front":"What does a stable balance of payments on the current account mean?","back":"The country broadly pays its way with the rest of the world, avoiding large and persistent deficits.","mcqOptions":[{"text":"The country broadly pays its way with the rest of the world, avoiding large and persistent deficits.","correct":true,"explanation":"A stable current account means international receipts and payments are broadly sustainable, so the country avoids relying continually on borrowing or asset sales to finance large deficits."},{"text":"The country broadly balances its budget with the rest of the world, avoiding large and persistent deficits.","correct":false,"explanation":"A government budget concerns public revenue and spending, not international transactions. A stable current account means the country broadly pays its way with the rest of the world."},{"text":"The country broadly pays its way with domestic firms, avoiding large and persistent deficits.","correct":false,"explanation":"The current account records transactions with the rest of the world, not simply payments between a country and its domestic firms. The external relationship is essential."},{"text":"The country broadly borrows its way with the rest of the world, avoiding large and persistent deficits.","correct":false,"explanation":"Persistent borrowing from abroad can finance a current-account deficit but does not mean the country pays its way. Stability requires avoiding large and persistent external deficits."}]},{"id":"7a29ee63-ea76-40c3-ba6d-827b93829dc7","cardType":"cloze","points":null,"front":"The external position is assessed using the [ ].","back":"The external position is assessed using the current account.","mcqOptions":[{"text":"current account","correct":true,"explanation":"The current account records trade in goods and services, primary income and transfers with the rest of the world, so it assesses the economy’s external position."},{"text":"capital account","correct":false,"explanation":"The capital account records capital transfers and certain non-produced assets. The standard measure of the external position discussed here is the current account."},{"text":"government budget","correct":false,"explanation":"The government budget compares public-sector revenue and expenditure. It does not measure international trade, income and transfer flows, which are recorded in the current account."},{"text":"financial account","correct":false,"explanation":"The financial account records international financial asset transactions and helps finance imbalances. The external position in this objective is assessed using the current account."}]},{"id":"7ebb6b9e-513c-4d9a-8a77-6566c6563f6d","cardType":"basic","points":1,"front":"What does a trade-off between economic objectives mean?","back":"Improving one objective comes at the cost of another.","mcqOptions":[{"text":"Improving one objective comes at the cost of another.","correct":true,"explanation":"A trade-off occurs when a policy improvement in one objective creates an adverse effect on another, such as faster growth increasing inflation or worsening the current account."},{"text":"Improving one objective comes at the benefit of another.","correct":false,"explanation":"A benefit to another objective describes complementary objectives, not a trade-off. A trade-off exists when pursuing one objective imposes a cost on another."},{"text":"Improving one objective comes at the expense of the same objective.","correct":false,"explanation":"A trade-off concerns different objectives, such as growth and inflation. It does not mean that improving an objective harms that very same objective."},{"text":"Improving one objective comes at the cost of higher productivity.","correct":false,"explanation":"Higher productivity can support several macroeconomic objectives and is not the definition of a trade-off. The key idea is conflict between different objectives."}]},{"id":"68cb657d-c88d-4574-bfc2-7ede4e947e61","cardType":"basic","points":2,"front":"Why can faster growth cause demand-pull inflation near full capacity?","back":"When spare capacity is limited, higher aggregate demand puts upward pressure on prices.","mcqOptions":[{"text":"When spare capacity is limited, higher aggregate demand puts upward pressure on prices.","correct":true,"explanation":"Near full capacity, firms cannot easily increase output when aggregate demand rises. Increased competition for scarce resources and goods therefore creates demand-pull inflation."},{"text":"When spare capacity is limited, higher aggregate demand puts downward pressure on prices.","correct":false,"explanation":"Higher aggregate demand near full capacity usually raises prices because supply cannot expand sufficiently. Downward pressure would be associated with weaker demand or greater available supply."},{"text":"When spare capacity is limited, higher aggregate demand puts upward pressure on unemployment.","correct":false,"explanation":"Higher demand near capacity tends to increase derived demand for labour and reduce unemployment. The inflationary effect comes from upward pressure on prices."},{"text":"When spare capacity is limited, higher aggregate demand puts no pressure on prices.","correct":false,"explanation":"With little spare capacity, output cannot rise much in response to demand, so prices are likely to come under upward pressure rather than remain unaffected."}]},{"id":"c4211b8a-cf4c-45b5-b570-8236ed64dfb8","cardType":"cloze","points":null,"front":"Where [ ] exists, economic growth need not raise inflation.","back":"Where spare capacity exists, economic growth need not raise inflation.","mcqOptions":[{"text":"spare capacity","correct":true,"explanation":"Spare capacity allows firms to increase production when demand rises without immediately bidding up wages and other input costs, so growth need not cause inflation."},{"text":"full capacity","correct":false,"explanation":"At full capacity, firms have little room to expand output, so additional demand is more likely to create upward pressure on prices and demand-pull inflation."},{"text":"excess demand","correct":false,"explanation":"Excess demand occurs when aggregate demand exceeds the economy’s ability to produce at current prices, making inflation more likely rather than preventing it."},{"text":"a labour shortage","correct":false,"explanation":"A labour shortage limits firms’ ability to expand and can force wages higher. It is therefore an inflationary constraint, not the condition that permits non-inflationary growth."}]},{"id":"922fb76e-6436-42dd-9331-003c04e2f640","cardType":"basic","points":2,"front":"How can falling unemployment create inflationary pressure?","back":"

A tighter labour market forces firms to offer higher wages.
Higher labour costs are passed on as higher prices.

","mcqOptions":[{"text":"

A tighter labour market forces firms to offer higher wages.
Higher labour costs are passed on as higher prices.

","correct":true,"explanation":"Falling unemployment reduces the pool of available workers. Firms may raise wages to recruit and retain staff, increasing unit costs that can be passed on through higher prices."},{"text":"

A tighter labour market forces firms to offer lower wages.
Higher labour costs are passed on as higher prices.

","correct":false,"explanation":"A tighter labour market generally strengthens workers’ bargaining position and pushes wages higher, not lower. Higher wages can then raise firms’ costs and prices."},{"text":"

A tighter labour market forces firms to offer higher wages.
Higher labour costs are passed on as lower prices.

","correct":false,"explanation":"Higher labour costs normally increase firms’ costs and create upward pressure on prices, unless productivity gains fully offset them. They do not directly imply lower prices."},{"text":"

A tighter labour market forces firms to offer lower wages.
Higher labour costs are passed on as lower prices.

","correct":false,"explanation":"Both relationships are reversed here. Labour scarcity tends to raise wages, and higher labour costs generally place upward rather than downward pressure on prices."}]},{"id":"82151969-aedb-4795-8566-b6f1281ea61d","cardType":"cloze","points":null,"front":"The short-run relationship between unemployment and inflation is illustrated by the [ ].","back":"The short-run relationship between unemployment and inflation is illustrated by the Phillips curve.","mcqOptions":[{"text":"Phillips curve","correct":true,"explanation":"The short-run Phillips curve shows an inverse relationship between unemployment and inflation: lower unemployment is commonly associated with higher inflationary pressure."},{"text":"Lorenz curve","correct":false,"explanation":"The Lorenz curve illustrates the distribution of income or wealth and inequality. It does not show the short-run relationship between unemployment and inflation."},{"text":"Engel curve","correct":false,"explanation":"An Engel curve relates household income to spending on a good or service. The unemployment-inflation relationship is represented by the Phillips curve."},{"text":"production possibility curve","correct":false,"explanation":"A production possibility curve shows the maximum combinations of outputs an economy can produce with its resources. It does not illustrate unemployment and inflation."}]},{"id":"cc4970e7-9c08-4364-a0e4-25b9b8523994","cardType":"basic","points":2,"front":"Why can faster economic growth worsen the current account?","back":"Higher growth increases imports through the marginal propensity to import, worsening the current account.","mcqOptions":[{"text":"Higher growth increases imports through the marginal propensity to import, worsening the current account.","correct":true,"explanation":"When income rises during economic growth, households and firms typically increase spending on imports. The marginal propensity to import captures the additional imports generated by higher income."},{"text":"Higher growth increases imports through the marginal propensity to consume, worsening the current account.","correct":false,"explanation":"The marginal propensity to consume measures the share of extra income spent overall, while the marginal propensity to import specifically measures extra import spending that can worsen the current account."},{"text":"Higher growth increases imports through the average propensity to import, worsening the current account.","correct":false,"explanation":"The average propensity to import is the proportion of total income spent on imports. The mechanism for additional imports caused by additional growth is the marginal propensity to import."},{"text":"Higher growth increases imports through the marginal propensity to save, worsening the current account.","correct":false,"explanation":"The marginal propensity to save measures the fraction of extra income saved, not spent on imports. Import growth is captured by the marginal propensity to import."}]},{"id":"46548ac6-287d-4c1e-b58c-e84badfa2a5f","cardType":"basic","points":1,"front":"What is the exception to growth worsening the current account?","back":"Export-led growth can improve the current account.","mcqOptions":[{"text":"Export-led growth can improve the current account.","correct":true,"explanation":"Growth driven by rising exports brings additional foreign earnings into the economy, so the current account can improve even though growth commonly increases imports and worsens the balance."},{"text":"Import-led growth can improve the current account.","correct":false,"explanation":"Growth driven by imports increases spending on foreign goods and services, worsening the current account. The exception is growth generated by stronger export demand, which earns overseas revenue."},{"text":"Consumption-led growth can improve the current account.","correct":false,"explanation":"Higher consumption often increases demand for imports, making the current account weaker. Growth improves it only when the main source is export sales rather than domestic spending."},{"text":"Investment-led growth can improve the current account.","correct":false,"explanation":"Investment may require imported capital goods, increasing import spending and worsening the balance. Export-led growth is the relevant exception because exports generate foreign income."}]},{"id":"166b48eb-4158-4261-9401-d581c937d8bf","cardType":"basic","points":2,"front":"How can higher domestic inflation worsen the current account?","back":"It erodes international competitiveness, reducing export demand and widening the deficit.","mcqOptions":[{"text":"It erodes international competitiveness, reducing export demand and widening the deficit.","correct":true,"explanation":"When domestic prices rise faster than those abroad, exports become relatively expensive and imports relatively attractive. Export demand falls, increasing the current-account deficit."},{"text":"It improves international competitiveness, increasing export demand and narrowing the deficit.","correct":false,"explanation":"Higher domestic inflation normally makes exports more expensive relative to foreign products, so competitiveness falls rather than improves. The correct effect is weaker export demand and a wider deficit."},{"text":"It erodes international competitiveness, increasing export demand and narrowing the deficit.","correct":false,"explanation":"The first link is correct, but reduced competitiveness makes exports less attractive, not more attractive. Lower export demand reduces export earnings and tends to widen the current-account deficit."},{"text":"It strengthens international competitiveness, reducing export demand and widening the deficit.","correct":false,"explanation":"Domestic inflation generally harms price competitiveness, rather than strengthening it. Although weaker export demand can widen the deficit, the correct explanation begins with eroded international competitiveness."}]},{"id":"94eae285-17b6-463a-9fb7-aae78584b78c","cardType":"basic","points":2,"front":"How can a weaker currency contribute to inflation?","back":"It raises the domestic price of imports, causing import-price inflation.","mcqOptions":[{"text":"It raises the domestic price of imports, causing import-price inflation.","correct":true,"explanation":"A depreciation means more domestic currency is needed to buy foreign currency, so imported goods and imported inputs become more expensive and push up the domestic price level."},{"text":"It lowers the domestic price of imports, causing import-price inflation.","correct":false,"explanation":"A weaker currency makes foreign goods costlier in domestic currency, not cheaper. This raises costs through imports and can create import-price inflation."},{"text":"It raises the domestic price of imports, causing demand-pull inflation.","correct":false,"explanation":"The price increase originates from more expensive imports rather than excessive domestic aggregate demand. The specific inflationary mechanism is import-price inflation."},{"text":"It raises the domestic price of exports, causing cost-push inflation.","correct":false,"explanation":"Currency weakness directly increases the domestic-currency price of imports, including imported inputs. It does not primarily raise export prices to create this inflationary effect."}]},{"id":"f7b4cedc-3f12-432a-8425-7664a4680980","cardType":"basic","points":2,"front":"Why can fiscal consolidation conflict with economic growth?","back":"Cutting a budget deficit reduces aggregate demand, which can slow growth and raise unemployment in the short run.","mcqOptions":[{"text":"Cutting a budget deficit reduces aggregate demand, which can slow growth and raise unemployment in the short run.","correct":true,"explanation":"Reducing government borrowing usually involves lower spending or higher taxation. Both can reduce aggregate demand, lowering output growth and increasing cyclical unemployment before longer-term benefits appear."},{"text":"Cutting a budget deficit increases aggregate demand, which can accelerate growth and reduce unemployment in the short run.","correct":false,"explanation":"Fiscal consolidation is contractionary in the short run because lower spending or higher taxes withdraws demand. The likely immediate effects are slower growth and higher unemployment."},{"text":"Cutting a budget deficit reduces aggregate demand, which can accelerate growth and reduce unemployment in the short run.","correct":false,"explanation":"The demand effect is correctly identified, but falling aggregate demand normally reduces output and employment in the short run. It does not immediately accelerate growth or reduce unemployment."},{"text":"Cutting a budget deficit increases aggregate demand, which can slow growth and raise unemployment in the short run.","correct":false,"explanation":"The stated outcomes can follow from weaker demand, but consolidation does not increase aggregate demand. Reduced public spending or increased taxation produces the contractionary effect."}]},{"id":"8324db6a-bcb6-4320-b2a6-5386d1519c39","cardType":"cloze","points":null,"front":"Supply-side policy can raise [ ], easing trade-offs between growth and inflation.","back":"Supply-side policy can raise productive capacity, easing trade-offs between growth and inflation.","mcqOptions":[{"text":"productive capacity","correct":true,"explanation":"Supply-side measures improve the economy’s ability to produce goods and services, shifting long-run aggregate supply outward. This allows higher sustainable growth with less inflationary pressure."},{"text":"consumer confidence","correct":false,"explanation":"Policies that raise confidence may increase current consumption and aggregate demand, but they do not directly expand the economy’s productive potential. Supply-side policy targets capacity and efficiency."},{"text":"the budget deficit","correct":false,"explanation":"Reducing the budget deficit is a fiscal-consolidation objective, not the direct quantity raised by supply-side policy. Productive capacity determines how much the economy can sustainably produce."},{"text":"short-run aggregate demand","correct":false,"explanation":"Supply-side policy primarily affects the economy’s productive potential and long-run aggregate supply. Short-run aggregate demand is more directly influenced by fiscal and monetary policy."}]}]}],"examCountdown":{"examDate":"2027-05-10","paperLabel":"Paper 1"},"heading":"2.1.1 The objectives of government economic policy","title":"2.1.1 The objectives of government economic policy Flashcards","topbar":{"backHref":"/a-level/economics/aqa/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"4cc2d8f4-1cfb-551c-b648-fe876b27e581","walled":"$L39"}],"$L3a","$L3b"]