Macroeconomics

Table of Contents

1. Topic pack - Macroeconomics - introduction
2. 2.1 The level of overall economic activity (notes)
3. 2.1 The level of overall economic activity (questions)
4. Section 2.2 Aggregate demand and supply (notes)
5. Section 2.2 Aggregate demand and supply (simulations and activities)
6. 2.2 Aggregate Demand and Aggregate Supply (questions)
7. 2.3 Macroeconomic objectives (notes)
8. Low Unemployment
9. 2.3 Macroeconomic objectives (questions)
10. 2.4 Fiscal policy (notes)
11. 2.4 Fiscal policy (questions)
12. 2.5 Monetary policy (notes)
13. 2.5 Monetary Policy (questions)
    1. Self-test questions
    2. Short questions
    3. Data response (1)
    4. Data response (2)
    5. Long questions
14. Section 2.6 Supply-side policies (notes)
15. 2.6 Supply-side policies (questions)
16. Print View

Short questions

Question 1

Explain the possible effects of an increase in interest rates.

Question 2

Distinguish between the nominal rate of interest and the real rate of interest.

Question 3

Distinguish between monetary and fiscal policy.

Question 4

Explain the link between an increase in the money supply lead to and an increase in interest rates.

Question 5

Distinguish between tight (contractionary) and loose (expansionary) monetary policy

Question 6

Describe the process of quantitative easing.

Question 7

Describe the role of the Central Bank.

Question 8

Explain how a government can use monetary policy to expand aggregate demand.