Macro (2,4)

• What are the determinants of Aggregate Demand (AD)?

  • Consumer spending (C)
  • Investment (I)
  • Government spending (G)
  • Net exports (X-M)
• How did tax cuts in 2018 affect consumer spending?

  Increased disposable income for consumers
• What was the effect of the coronavirus pandemic on consumer spending?

  Increased marginal propensity to save
• What economic condition did the US experience in 2020 due to reduced GDP?

  Recession
• Which country was projected to see positive economic output at the end of 2020?

  China
• What initiative did China plan to expand despite the pandemic?

  Belt and Road Initiative (BRI)
• How did Brexit affect investment in the UK?

  Created uncertainty deterring investors
• What was the public debt-to-GDP ratio of Greece in 2010?

  146%
• What is the purpose of the new T-level courses introduced in the UK?

  To provide technical qualifications for students
• How does government spending on vocational training affect AD?

  Increases AD and shifts LRAS curve
• What impact did austerity measures have on Greece's AD?

  Contributed to a fall in AD
• What was the significance of the Regional Comprehensive Economic Partnership (RCEP) signed in November 2020?

  Largest Free Trade Agreement ever signed
• How does a strong exchange rate affect net exports?

  Makes exports dearer and imports cheaper
• What is the effect of higher wages on the SRAS curve?

  Shifts the SRAS curve left
• What is the purpose of the furlough scheme implemented by the UK government?

  To subsidize wage bills during lockdowns
• How did the OPEC oil embargo in 1973 affect US firms?

  Increased cost of production for firms
• What is the impact of transitioning to renewable energy sources on production costs?

  Reduces overall cost of production
• What is the European Union's goal for 2050?

  To become climate-neutral
• What is the effect of government regulation on firms regarding environmental policies?

  Increases cost of production for firms
• What was China's ten-year plan called?

  Made in China 2025
• How do T-levels affect the quality of human capital?

  Increase the quality of human capital
• What is the impact of 'zombie firms' on the UK economy?

  Damages overall productivity of the economy
• What is structural unemployment?

  Unemployment due to technological advances
• How did the coronavirus pandemic affect jobs in the manufacturing industry?

  Made it impossible to work from home
• What is the relationship between seasonal unemployment and peak seasons?

  Temporary workers are laid off after peak seasons
• What is cyclical unemployment?

  Unemployment due to economic downturns
• What causes demand-pull inflation?

  High demand for goods during peak seasons
• How does cost-push inflation occur?

  Increased production costs passed to consumers
• What was the effect of the 1973 oil crisis on inflation?

  Increased inflation due to rising production costs
• What was the impact of tariffs imposed by the WTO on US goods?

  Widened the US current account deficit
• How does Germany maintain a current account surplus?

  Low prices and high exports drive surplus
• How did Covid-19 affect global supply chains?

  Disrupted supply chains and closed borders
• What is the trade-off between economic growth and the environment?

  Economic growth may harm the environment
• What does the Phillips curve illustrate?

  Inverse correlation between inflation and unemployment
• What is stagflation?

  High unemployment with high inflation rates