Edexcel A Level Macroeconomics Exam 2024 Questions & Answers(RATED A+)
AD (def.) - ANSWERSTotal level of planned real expenditure on g/s produced within country in given time period AS (def.) - ANSWERSTotal supply of all g/s in economy AD (eq.) - ANSWERSAD = C + I + G + (X - M) Factors that affect AD: C - ANSWERS∝ disposable income ∝ employment ∝ 1/interest rate ∝ availability of credit ∝ confidence ∝ wealth ∝ inflation (short run) ∝ 1/inflation (long run) Factors that affect AD: G - ANSWERS∝ size of public sector ∝ dependency ratio ∝ 1/(business cycle) ∝ 1/(national debt) Factors that affect AD: I - ANSWERS∝ 1/interest rate ∝ access to credit ∝ abnormal profit ∝ growth ∝ economic state of trade partners ∝ business confidence Factors that affect AD: (X - M) - ANSWERS∝ 1/real income in domestic economy ∝ economic state of trade partners ∝ 1/(currency strength) ∝ degree of protectionism ∝ quality of X Factors that affect SRAS - ANSWERS∝ 1/cost of factor inputs ∝ productivity of factor inputs ∝ stock of factor inputs ∝ mobility of factor input Economic growth (def.) - ANSWERSRise in real GDP Rise in nation's productive capacity (PPF expansion) Macro objectives - ANSWERSEconomic growth Employment Price stability Balance of payments Fiscal balance Income equality Environmental preservation
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