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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2016 · Q221 Mark

The table gives information about three economic indicators in four countries. [Table 22.1] What may be concluded from this information?

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ACountries with higher inflation have higher interest rates.
BCountries with higher interest rates have lower unemployment.
CThe country with the lowest inflation had the highest unemployment.
DThe country with the lowest unemployment had the lowest inflation.

✓ Correct answer

A: Countries with higher inflation have higher interest rates.

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2016 Paper 1 Variant 1, question 22.

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