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)
   1. Self-test questions
   2. Short questions
   3. Data response (1)
   4. Data response (2)
   5. Long 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)
16. Print View

Self-test questions

1

Trade cycle In which phase of the trade cycle is inflation most likely to emerge? a) Boom b) Recession c) Recovery d) Peak Please select an answerYes, well done. A boom means rapid growth and this may cause demand-pull inflation to emerge.No, inflation is likely to fall in this phase.No, inflation is likely to remain low in this phase.No, inflation is likely to high or rising in this phase.

2

Trade cycle Which of the following is not a phase of the trade cycle? a) Boom b) Recession c) Recovery d) Inflation Please select an answerNo, this is a phase of the business cycle.No, this is a phase of the business cycle.No, this is a phase of the business cycle.Yes, this may happen WITHIN the boom phase of the cycle.

3

Trade cycle In which phase of the business cycle is unemployment most likely to rise? a) Boom b) Recession c) Recovery d) Peak Please select an answerNo, unemployment is likely to be falling here. Higher demand for goods and services will lead to more jobs being created.Yes, well done. In a recession, demand is falling and this is likely to lead firms to lay off workers.No, unemployment may rise or it may begin to stabilise in this phase.No, unemployment is likely to be falling here.