A LEVEL ECONOMICS PAPER 3 2025 MACRO MULTIPLE CHOICE

A LEVEL ECONOMICS PAPER 3 2025 MACRO
MULTIPLE CHOICE

shows a table of a countrys macro economic performance .. what can be inferred? - B
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



the price level is increasing more slowly
Ag Ag Ag Ag Ag Ag Ag




The most likely explanation for the move of the economy from its initial equilibrium at
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



E1 to a new short-run equilibrium at E2 is a decrease in the - A the level of tarriffs on
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



imports causes SRAS to shift right
Ag Ag Ag Ag Ag Ag




Which one of the following policies is most likely to improve the supply side of the
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



economy? - B a policy which reduces the natural rate of unemployment
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag




All other things being equal, if the velocity of circulation is constant, the quantity theory
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



of money based on Fisher's equation of exchange, MV=PQ, predicts that an x% increase
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



in the money supply will always cause an x% - B increase in nominal national income
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag




The government wants to achieve economic growth without conflicting with its long-run
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



objective of price stability. All other things being equal, which one of the following
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



policy combinations is most likely to enable the economy to achieve a new long-run
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



equilibrium at E2? - C Increased government expenditure on apprenticeships and
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



transport infrastructure funded through borrowing.
Ag Ag Ag Ag Ag




The diagram below shows the actual level of real GDP and the trend level of real GDP
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



over time for an economy. The economy starts its recovery from recession at point M.
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



After several years of growth the economy reaches point N - C An increase in
Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag Ag



investment due to the accelerator process
Ag Ag Ag Ag Ag Ag