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Economics · May / June 2025 · Paper 11 · Question 4

2281Economic growth

In 2020, to prevent the spread of a pandemic, many governments temporarily closed restaurants and cafés. What would be a macroeconomic impact of such a policy?

  1. ADemand for food to be consumed at home would rise.
  2. BGross Domestic Product (GDP) would fall.
  3. CThe profits from restaurants and cafés would fall.
  4. DStaff working in restaurants and cafés would lose income.

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Correct answer: B. Gross Domestic Product (GDP) would fall.

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