Overall Macroeconomic Quiz (OCR)

Macroeconomics OCR AS Level

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  • Created by: Laura
  • Created on: 23-05-12 15:32
What is the equation for Aggregate Demand?
AD = C + G + I + (X – M)
1 of 12
Does advancements in technology affect investment?
True
2 of 12
It is true to say that the level of economic activity does not influence government spending?
False
3 of 12
In the short run, it is assumed that the prices of factors of production, such as money wage rates, are...
Constant
4 of 12
What would an increase in firms' cost of production will shift the short run aggregate supply curve....
Upwards
5 of 12
In the long-run, it is assumed that the prices of factors of production are variable but that the productive capacity of an economy is
Fixed
6 of 12
When is an economy in an equilibrium?
when Aggregate Demand equals Aggregate Supply
7 of 12
Is it correct to state that Fiscal Policy affects aggregate demand?
True
8 of 12
Supply Side Policies are designed to _______ the average rate of growth of the economy.
Increase
9 of 12
Governments can influence the economy through the use of _____ policy
Monetary
10 of 12
What is the value of currency in a floating exchange rate system determined by?
the forces of demand and supply
11 of 12
A rise in the value of a currency is likely to reduce exports and ______ imports
increase
12 of 12

Other cards in this set

Card 2

Front

Does advancements in technology affect investment?

Back

True

Card 3

Front

It is true to say that the level of economic activity does not influence government spending?

Back

Preview of the front of card 3

Card 4

Front

In the short run, it is assumed that the prices of factors of production, such as money wage rates, are...

Back

Preview of the front of card 4

Card 5

Front

What would an increase in firms' cost of production will shift the short run aggregate supply curve....

Back

Preview of the front of card 5
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Comments

len.james

Report

The Government cant possibly influence the economy directly through monetary policy as this is governed by the bank of England.

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