a level economics paper 3 macro multiple choice

shows a table of a countrys macro economic performance .. what can be inferred? - correct answerB the price level is increasing more slowly The most likely explanation for the move of the economy from its initial equilibrium at E1 to a new short-run equilibrium at E2 is a decrease in the - correct answerA the level of tarriffs on imports causes SRAS to shift right Which one of the following policies is most likely to improve the supply side of the economy? - correct answerB a policy which reduces the natural rate of unemployment All other things being equal, if the velocity of circulation is constant, the quantity theory of money based on Fisher's equation of exchange, MV=PQ, predicts that an x% increase in the money supply will always cause an x% - correct answerB increase in nominal national income The government wants to achieve economic growth without conflicting with its long-run objective of price stability. All other things being equal, which one of the following policy combinations is most likely to enable the economy to achieve a new long-run equilibrium at E2? - correct answerC Increased government expenditure on apprenticeships and transport infrastructure funded through borrowing. The diagram below shows the actual level of real GDP and the trend level of real GDP over time for an economy. The economy starts its recovery from recession at point M. After several years of growth the economy reaches point N - correct answerC An increase in investment due to the accelerator process what is most likely to reduce the economys negative output gap - correct answerdecreasing rate of interest and increase the deficit The UK's labour productivity increases by only 10% over a five year period. Over the same period its main trading partners increase their productivity by 25%. All other things being equal, the most likely consequence for the UK is - correct answerC a loss of competitiveness against its main trading partners A company has an issued share capital of £1 million and an outstanding corporate bond issue of £200 000. To fund its expansion, the company issues additional corporate bonds for £300 000. All other things being equal, after the issue of the additional corporate bonds the ratio of the company's total debt to its equity will be - correct answer0.5:1 Despite its central bank operating a policy of quantitative easing for several years, an economy has rising unemployment and a rate of inflation significantly below the target rate set by the government. All other things being equal, which one of the following actions is the central bank most likely to take in order to meet the target for inflation? - correct answerC Providing forward guidance indicating that the bank will continue with its programme of quantitative easing. ll other things being equal, which one of the following combinations, A, B, C or D, is most likely to improve the bank's financial stability? - correct answerliquidity de