How often AD-AS model and the Phillips curve is asked

Where it was asked

• May/Jun 201210 marks
• Oct/Nov 201113.75 marks
• May/Jun 201116 marks

The questions

1. May/Jun 2012, Q4.45 marks

   Candidates had to briefly explain why a decrease in the interest rate would lead to an increase in the income level within the AD-AS model, and were required to comment on the factors that influence the size of this increase in income.

2. May/Jun 2012, QB301.25 marks · multiple choice

   If autonomous expenditure changes, select what the multiplier determines the size of: (1) the shift of the aggregate supply curve; (2) the shift of the production possibilities curve; (3) the shift of the aggregate demand curve; (4) the movement along the aggregate demand curve.

3. May/Jun 2012, QB311.25 marks · multiple choice

   A simultaneous decrease in aggregate supply and aggregate demand will always do what? Choose from: (1) increase the production level; (2) reduce the production level; (3) increase the price level; (4) leave the price level unchanged.

4. May/Jun 2012, QB321.25 marks · multiple choice

   A country experiences an increase in the price level and a decrease in real GDP. Select the combination of changes in aggregate supply and aggregate demand that could explain this outcome: (1) aggregate supply increased and aggregate demand increased; (2) aggregate supply decreased and aggregate demand did not change; (3) aggregate supply increased and aggregate demand did not change; (4) aggregate supply did not change and aggregate demand increased.

5. May/Jun 2012, QB331.25 marks · multiple choice

   Select what demand management policy measures tend to affect: (1) output and the level of employment in opposite directions; (2) output and the price level in opposite directions; (3) the level of employment and the price level in opposite directions; (4) the price level and the level of unemployment in opposite directions.