Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 18

clipped from www.tutor2u.net

The chart below shows the annual percentage change in consumer spending and real national output (GDP) since 1985.

macro3.gif

From the chart we can deduce that
  1. The share of consumer spending in total GDP has increased during the period
  2. Consumer spending has grown more quickly than real GDP throughout the entire period from 1985-2001
  3. Exporters of goods and service from the UK experienced a slowdown in demand from 1994 onwards
  4. A growing percentage of consumer spending went on imported goods and services during this period
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