A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2012 · Q261 Mark

A sudden rise in the price of imported oil caused the annual rate of inflation in a given year to be higher than expected. What might be a likely result of this?

ABorrowers would gain.

BReal wages would rise.

CThe balance of trade would improve.

DUnemployment would fall.

✓ Correct answer

A: Borrowers would gain.

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2012 Paper 1 Variant 2, question 26.

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