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multiple choice question

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    • Thread Starter

    Would anyone be able to walk me through these 2 questions?

    thanks so much
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    Do you have the answers?

    I would say the first one is B as increased inflation will mean UK exports are not as competitive, causing the volume to fall.

    I think the second question is also B as you do Nominal GDP Growth - Inflation (8 - 5.5 = 2.5). Then that result - Population Growth ( 2.5 - 2.5 = 0)

    There are both B, inflation is the viable one, as that would make our exports more expensive, and imports cheaper, reducing the volume exported, and hence the fall throughout the period.

    The second one 8-(5.5+2.5) =0 so it's also B
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