The government aims to keep CPI inflation around its 2.0% target.
Table 1 shows four forecasts for the following year.
| Forecast | Annual current-account receipts | Annual current-account payments | CPI inflation |
|---|---|---|---|
| W | £410 billion | £430 billion | 2.1% |
| X | £430 billion | £420 billion | 2.2% |
| Y | £425 billion | £415 billion | 5.4% |
| Z | £420 billion | £420 billion | 4.7% |
Using Table 1, which forecast avoids a current account deficit while keeping inflation close to the government's target?
Forecast W
Forecast Y
Forecast Z
Forecast X
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.