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SHS Economics · Year 2

Macroeconomic Variables practice questions

National income accounting, and the types and causes of inflation and unemployment.

22 questions in this topic: 1 recall, 10 applying skills and concepts, 8 strategic thinking and 3 extended thinking. Every one carries a written explanation.

Sample questions

3 of 22 questions in this topic. Sign up to answer them and see the explanations.

  1. Question 1Strategic thinking

    Which of these is a disadvantage of a weak (depreciated) currency, according to the section?

    • aIt makes imports more expensive, which can raise prices for things like fuel and food, contributing to inflation
    • bIt always reduces a country's exports
    • cIt always discourages foreign tourists from visiting
    • dIt makes it easier to repay debts owed in foreign currency
  2. Question 2Skills & concepts

    When inflation is low and stable, what effect does this typically have on GDP, according to the section?

    • aIt tends to help GDP grow, since people and businesses can plan better and spend and invest more
    • bIt always causes GDP to shrink immediately
    • cIt has no relationship to GDP whatsoever
    • dIt automatically eliminates unemployment
  3. Question 3Strategic thinking

    Using the example where Cement Manufacturing has gross output GH¢800,000 and intermediate consumption (limestone) GH¢200,000, what is its Gross Value Added?

    • aGH¢600,000 (800,000 − 200,000)
    • bGH¢800,000, the full gross output
    • cGH¢200,000, the intermediate consumption alone
    • dGH¢1,000,000, adding the two figures together

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