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

Long Questions

Question 1

(a) Explain what is meant by the circular flow of income.

(b) Using diagrams to illustrate your answers, explain the conditions necessary for the circular flow of income of a country to be in equilibrium.

Question 2

(a) Describe the methods by which Gross Domestic Product can be measured.

(b) To what extent can Gross Domestic Product be used as a reliable indicator of living standards, both nationally and internationally?