Question Four: (6 marks) (A1, C1, C2) Stagflation and recession are increasingly being used to describe where the econom

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Question Four 6 Marks A1 C1 C2 Stagflation And Recession Are Increasingly Being Used To Describe Where The Econom 1 (69.02 KiB) Viewed 27 times

Question Four: (6 marks) (A1, C1, C2) Stagflation and recession are increasingly being used to describe where the economy might be headed. The World Bank warned on 14th June 2022, that global economies were at risk of stagflation if not recession. "The world economy is again in danger," David Malpass, president of the World Bank, said in the latest edition of the Global Economic Prospects report. "It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years - unless major supply increases are set in motion." Explain the main differences between stagflation and recession, if we had to face one, which one would be less painful? Question Five: (6 marks) (C1, C2, D2) Given the following data for an open economy at current market prices for the year 2017 measured in billion dollars. Net investment spending 800 Government Expenditure 700 Consumption expenditure 1500 Depreciation Net export 200 100 300 Export GDP deflator 2016 (unit free) 140 GDP deflator 2017 (unit free) 150 Instructions: (1 marks each) - show your calculation 1. What is the value of the gross investment in 2017? 2. What is the value of the gross domestic product GDP in 2017? 3. What is the value of nominal GDP in 2017? 4. What is the value of RGDP in 2017? 5. What is the value of import in 2017? 6. What is the value of inflation rate in 2017?