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Worksheets2024 JC2 EC Term 2 Macro Revision
Total questions: 15
Worksheet time: 6mins
When the Gini Coefficient is high, it can lead to material SOL being
understated
overstated
no impact
Purchasing Power Parity (PPP) accounts for
the differences in market exchange rate
the differences in cost of living
True/False?
To achieve sustainable growth, there can be tradeoffs with actual and/or potential growth.
True
False
Statistics on unemployment rate tells us about _________ directly (choose the best answer).
material SOL
non-material SOL
We use the Marshall-Lerner condition when explaining: (choose all that apply)
How a change in inflation affects (X-M)
How a change in exchange rate affects (X-M)
How a change in income levels affect (X-M)
True/False?
When corporate tax rate rises, firms’ unit cost of production increases, causing AS to decrease and shift upwards.
True
False
True/False?
An increase in productivity will lead to improvement in the quality of goods and services, increasing productive capacity which will increase LRAS and shift the AS curve rightwards.
True
False
True/False?
When more workers are hired and unemployment falls, LRAS increases and shifts right.
True
False
The Consumer Price Index (CPI) can be defined as
The market value of all final goods and services
A measure of inflation based on the cost of a fixed “household basket”
Who implements the monetary policy? Choose the best answer.
The central bank
The government
The state
The ministry of finance
During a recession, the Fed can _______ interest rates to achieve price stability.
cut
raise
True/False?
When GPL falls, consumers will consume more. Hence AD shifts right, leading to GPL rising.
True
False
A tightening of the monetary policy refers to "__________"
contractionary monetary policy
expansionary monetary policy
"Cheap money" refers to
expansionary fiscal policy
expansionary interest rate monetary policy
expansionary exchange rate monetary policy
True/False?
A depreciation of the domestic currency will increase AD, assuming ML condition holds, but reduce AS.
True
False
