Nss Exploring Economics Exam Practice -3rd Ed- Macroeconomics Answers May 2026

What is the difference between GDP and GNP?

The Phillips Curve shows the inverse relationship between the unemployment rate and the inflation rate. It suggests that as the unemployment rate falls, the inflation rate rises, and vice versa. What is the difference between GDP and GNP

GDP (Gross Domestic Product) is the total value of goods and services produced within a country’s borders, while GNP (Gross National Product) is the total value of goods and services produced by a country’s citizens, regardless of where they are located. GDP (Gross Domestic Product) is the total value

What is the effect of an increase in aggregate demand on the economy? What are the advantages and disadvantages of a trade surplus

What is the Phillips Curve, and what does it show?

What are the advantages and disadvantages of a trade surplus?

An increase in aggregate demand will lead to an increase in the general price level (inflation) and an increase in real GDP (economic growth).