Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 24

A country is a net importer of oil. World oil prices have risen over the year. Assuming that all other factors remain the same, how is this likely to affect inflation, trade balance and unemployment in this country?

1. Ainflation decrease; trade balance no change; unemployment increase
2. Binflation increase; trade balance improve; unemployment decrease
3. Cinflation increase; trade balance worsen; unemployment increase
4. Dinflation decrease; trade balance no change; unemployment decrease

As printed in the paper