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)
14. Section 2.6 Supply-side policies (notes)
15. 2.6 Supply-side policies (questions)
    1. Self-test questions
    2. Short questions
    3. Data response (1)
    4. Data response (2)
    5. Long questions
16. Print View

Long questions

Question 1

(a) Distinguish between market based and interventionist supply-side policies.

(b) Using specific examples and diagrams where appropriate, analyse the costs and benefits to the economy of the government implementing a market based approach to supply-side policy.

Question 2

(a) Explain why the shape of the aggregate supply curve may differ in the short and long run.

(b) Evaluate the extent to which supply-side policy attempts is effective in influencing output, employment and income in the long run.