AS Macro: Concepts tested by the AQA MC Paper

In final revision it can be helpful to have an overview of what is being tested in the AQA AS Macro multiple choice paper. Here are topics from the Jan 2011 paper. Are you confident with each of them?

The Jan 2011 AQA macro multiple choice questions tested understanding of

Loosening of fiscal policy
Rising exports and shifting AD
Measuring economic growth
Causes of demand side shocks to UK
Accelerator effect (rising national income leading to higher investment)
Combinations likely to cause worsening of a trade deficit
When is the MPC likely to cut interest rates
Causes of a fall in AD
Low relative inflation and demand for exports
Causes of outward shift of LRAS
Example of cyclical unemployment
Rising national income and movement towards PPF frontier
Examples of expansionary fiscal policy
Causes of demand-pull inflation
Effects of fall in the exchange rate
Rising wages and falling interest rates - AS and AD effects
Effects of a large rise in interest rates
Below trend growth and rising unemployment
Policies to reduce a trade surplus and high inflation
Example of instrument of monetary policy
Cause of outward shift of AD curve
Example of fiscal policy having a supply side effect
Falling AD and causes of unemployment
Factors likely to cause a fall in business investment
Inward foreign direct investment and AD/LRAS effects

The June 2010 AQA macro multiple choice questions tested understanding of

Lowering income taxes when economy is suffering from low growth, inflation and a trade deficit
Economic headline - example of monetary policy
Measuring the current account of the BoP
Cause of inward shift of LRAS
Effects of an exchange rate depreciation
Causes of a rise in imports (fall in the savings ratio)
Economic growth rates (interpreting chart)
Using fiscal policy to boost AD
Definition of the multiplier
Causes of fall in price level due to inward shift of AD
Supply side policies for raising trend growth
Role of the banking system
Rise in SRAS and fall in AD - finding the two relevant causes
Fall in G and a rise in interest rates - likely outcome (falling inflation and rising U)
Measuring the rate of inflation
Increase in investment - short and long run effect on a PPF
Using fiscal policy to reduce unemployment
Causes of an inward shift in AD
Causes of an increase in structural unemployment
When is the MPC likely to raise interest rates?
Policies to reduce unemployment - expansionary MP and FP
Example of supply-side policies
Factor most likely to increase the size of a current account (BoP) deficit
Effects of a rise in productivity (lower inflation)
Effect of AD growing less quickly than underlying trend growth rate (rising unemployment)