Macroeconomics Definitions AQA a level Economics Questions and
Answers with Verified Solutions | Latest 2026 Update
Q: proportional tax
Answer:
a tax for which the percentage of income paid in taxes remains the same
for all income levels
Q: Automatic stabiliser
Answer:
A feature of government's fiscal approach which helps to minimise
fluctuations in aggregate demand without deliberate action.
Q: Laffer curve
Answer:
the relationship between the tax rate and the amount of tax revenue collected -
low rates - rising tax rates. will increase. revenue but after point revenue falls -
workers lose
incentive to work
,Macroeconomics Definitions AQA a level Economics Questions and
Answers with Verified Solutions | Latest 2026 Update
Q: National debt
Answer:
Outstanding debt of national givers,net at a point in time
Q: Supply-side policies
Answer:
Government attempts to increase aggregate supply. eg. cut tax rate,
encourage greater participation in rate of labour, reduce monopoly power,
privatisation, boost
education and training - shift AS curve reduce inflation and increase employment and
REAL GDP
Q: Deregulation
Answer:
Removal government regulation to allow entry of private sector firms to
compete in a market
, Macroeconomics Definitions AQA a level Economics Questions and
Answers with Verified Solutions | Latest 2026 Update
Q: Globalisation
Answer:
The growing integration and interdependence of the world's economies,
causing consumers around the globe to have increasingly similar habits and tastes.
Q: Foreign direct investment
Answer:
Spending by firms on productive capacity in other countries
Q: Multinational companies
Answer:
Large company with production based in several different
countries
Answers with Verified Solutions | Latest 2026 Update
Q: proportional tax
Answer:
a tax for which the percentage of income paid in taxes remains the same
for all income levels
Q: Automatic stabiliser
Answer:
A feature of government's fiscal approach which helps to minimise
fluctuations in aggregate demand without deliberate action.
Q: Laffer curve
Answer:
the relationship between the tax rate and the amount of tax revenue collected -
low rates - rising tax rates. will increase. revenue but after point revenue falls -
workers lose
incentive to work
,Macroeconomics Definitions AQA a level Economics Questions and
Answers with Verified Solutions | Latest 2026 Update
Q: National debt
Answer:
Outstanding debt of national givers,net at a point in time
Q: Supply-side policies
Answer:
Government attempts to increase aggregate supply. eg. cut tax rate,
encourage greater participation in rate of labour, reduce monopoly power,
privatisation, boost
education and training - shift AS curve reduce inflation and increase employment and
REAL GDP
Q: Deregulation
Answer:
Removal government regulation to allow entry of private sector firms to
compete in a market
, Macroeconomics Definitions AQA a level Economics Questions and
Answers with Verified Solutions | Latest 2026 Update
Q: Globalisation
Answer:
The growing integration and interdependence of the world's economies,
causing consumers around the globe to have increasingly similar habits and tastes.
Q: Foreign direct investment
Answer:
Spending by firms on productive capacity in other countries
Q: Multinational companies
Answer:
Large company with production based in several different
countries
