PRINCIPLES OF MACROECONOMICS
CERTIFICATION EVALUATION 2026 EXAM
SCRIPT FULLY SOLVED QUESTION SET
◉Supply curve. Answer: A graph of the supply schedule for a good.
◉What are the different factors that can affect the demand curve?.
Answer: Change in income, change in the population that would buy,
change in price of related items, change in preference, or future
expectations of the price of a product.
◉What are the different factors that can affect the supply curve?.
Answer: Change in price of inputs, change in production technology,
change in number of sellers, future expectations for that product,
taxes and regulations, and natural conditions
◉Market equilibrium. Answer: where the supply and demand curves
meet
◉What happens when Demand increases and supply decreases?.
Answer: the Price rises, but the quantity is ambiguous.
,◉What happens when Supply increases and Demand decreases?.
Answer: The Price decreases, but the quantity is ambiguous.
◉What happens when both Supply and Demand increase?. Answer:
The quantity rises but the price is ambiguous.
◉What happens when both Supply and Demand decrease?. Answer:
the quantity falls, but the price is ambiguous.
◉Surplus. Answer: When the quantity supplied is more than
quantity demanded
◉shortage. Answer: when quantity demanded is greater than
quantity supplied.
◉ceteris paribus. Answer: other things being equal
◉consumer surplus. Answer: the extra benefit consumers receive
from buying a good or service, measured by what the individuals
would have been willing to pay minus the amount that they actually
paid
◉deadweight loss. Answer: the loss in social surplus that occurs
when a market produces an inefficient quantity
, ◉price ceiling/floor. Answer: limits the governments put on the
prices of a good. Ceiling is shown below equilibrium, while floor is
shown above.
◉producer surplus. Answer: the extra benefit producers receive
from selling a good or service, measured by the price the producer
actually received minus the price the producer would have been
willing to accept
◉GDP. Answer: Gross Domestic Product- the total market value of all
final goods and services produced by an economy in a fiscal year.
◉gdp equation. Answer: Y = C + I + G + (x-m)
◉GDP deflator. Answer: a measure of the price level, calculated by
dividing nominal GDP by real GDP and multiplying by 100
◉Nominal GDP. Answer: Gdp measured in current prices: C + I + G +
(x-m)
◉Real GDP. Answer: GDP measured using constant prices: current
GDP / Base GDP x 100
CERTIFICATION EVALUATION 2026 EXAM
SCRIPT FULLY SOLVED QUESTION SET
◉Supply curve. Answer: A graph of the supply schedule for a good.
◉What are the different factors that can affect the demand curve?.
Answer: Change in income, change in the population that would buy,
change in price of related items, change in preference, or future
expectations of the price of a product.
◉What are the different factors that can affect the supply curve?.
Answer: Change in price of inputs, change in production technology,
change in number of sellers, future expectations for that product,
taxes and regulations, and natural conditions
◉Market equilibrium. Answer: where the supply and demand curves
meet
◉What happens when Demand increases and supply decreases?.
Answer: the Price rises, but the quantity is ambiguous.
,◉What happens when Supply increases and Demand decreases?.
Answer: The Price decreases, but the quantity is ambiguous.
◉What happens when both Supply and Demand increase?. Answer:
The quantity rises but the price is ambiguous.
◉What happens when both Supply and Demand decrease?. Answer:
the quantity falls, but the price is ambiguous.
◉Surplus. Answer: When the quantity supplied is more than
quantity demanded
◉shortage. Answer: when quantity demanded is greater than
quantity supplied.
◉ceteris paribus. Answer: other things being equal
◉consumer surplus. Answer: the extra benefit consumers receive
from buying a good or service, measured by what the individuals
would have been willing to pay minus the amount that they actually
paid
◉deadweight loss. Answer: the loss in social surplus that occurs
when a market produces an inefficient quantity
, ◉price ceiling/floor. Answer: limits the governments put on the
prices of a good. Ceiling is shown below equilibrium, while floor is
shown above.
◉producer surplus. Answer: the extra benefit producers receive
from selling a good or service, measured by the price the producer
actually received minus the price the producer would have been
willing to accept
◉GDP. Answer: Gross Domestic Product- the total market value of all
final goods and services produced by an economy in a fiscal year.
◉gdp equation. Answer: Y = C + I + G + (x-m)
◉GDP deflator. Answer: a measure of the price level, calculated by
dividing nominal GDP by real GDP and multiplying by 100
◉Nominal GDP. Answer: Gdp measured in current prices: C + I + G +
(x-m)
◉Real GDP. Answer: GDP measured using constant prices: current
GDP / Base GDP x 100
