In Year 1, Selwick's real GDP was £800 billion and its CPI was 150.0. Real GDP had grown by 2.0% during Year 1.
The government wants real GDP to continue growing at the same rate and CPI inflation to be around 2.0%. Table 1 shows four forecasts for Year 2.
| Scenario | Real GDP in Year 2 (£ billion) | CPI in Year 2 |
|---|---|---|
| J | 832 | 153.0 |
| K | 816 | 157.5 |
| L | 816 | 153.0 |
| M | 832 | 157.5 |
For which scenario would Selwick's growth rate and inflation rate in Year 2 both be what its government wants?
Scenario K
Scenario L
Scenario M
Scenario J
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.