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)
    1. Self-test questions
    2. Short questions
    3. Data response (1)
    4. Data response (2)
    5. Long 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 a) tightening and b) loosening of fiscal policy.

(b) "Unemployment can best be reduced through the use of demand-side policies". Do you agree? Justify your answer.

Question 2

(a) Explain the difference between discretionary fiscal policy and automatic stabilisers

(b) Discuss the effectiveness of two fiscal policy options available to a country experiencing a recession.