Classical Models of the Macroeconomy · CAPE Economics Unit 2

22 past-paper questions on Classical Models of the Macroeconomy, part of Models of the Macroeconomy, from every CAPE Economics Unit 2 paper on Quelpr.

1. 2(a)(i)3 marks· CAPE Economics Unit 2 · 2006 · Paper 2Explain the meaning of Aggregate demand.
2. 2(a)(ii)3 marks· CAPE Economics Unit 2 · 2006 · Paper 2Explain the meaning of Aggregate demand curve.
3. 2(a)(iii)3 marks· CAPE Economics Unit 2 · 2006 · Paper 2Explain the meaning of Aggregate supply.
4. 2(a)(iv)3 marks· CAPE Economics Unit 2 · 2006 · Paper 2Explain the meaning of Aggregate supply curve.
5. 2(a)(v)3 marks· CAPE Economics Unit 2 · 2006 · Paper 2Explain the meaning of Equilibrium price level.
6. 2(b)(iii)9 marks· CAPE Economics Unit 2 · 2006 · Paper 2Using aggregate demand and aggregate supply curves to illustrate your points, discuss the impacts on price level (P) and equilibrium GDP (Y) in the short run of an increase in the price of oil caused by war in the…
7. 2(a)8 marks· CAPE Economics Unit 2 · 2007 · Paper 2State four major determinants of aggregate demand.
8. 2(b)8 marks· CAPE Economics Unit 2 · 2007 · Paper 2State four major determinants of aggregate supply.
9. 2(a)(i)3 marks· CAPE Economics Unit 2 · 2008 · Paper 2State the level of unemployment referred to in the statement that some amount of unemployment still exists when the economy is in equilibrium.
10. 2(a)(ii)9 marks· CAPE Economics Unit 2 · 2008 · Paper 2Draw a graph showing equilibrium employment.
11. 2(a)(iii)3 marks· CAPE Economics Unit 2 · 2008 · Paper 2On the same graph, show disequilibrium unemployment.
12. 2(b)5 marks· CAPE Economics Unit 2 · 2008 · Paper 2Explain why disequilibrium employment exists according to the classical model.
13. 2(c)10 marks· CAPE Economics Unit 2 · 2008 · Paper 2Explain how, according to the classical view, the economy goes back to equilibrium employment from a position of disequilibrium.
14. 2(a)(ii)5 marks· CAPE Economics Unit 2 · 2010 · Paper 2Using the Classical Model, explain why disequilibrium employment exists.
15. 2(a)6 marks· CAPE Economics Unit 2 · 2012 · Paper 2Using the classical economic model, explain why disequilibrium employment exists.
16. 2(b)10 marks· CAPE Economics Unit 2 · 2012 · Paper 2Analyse, using aggregate demand and supply curves, how a global recession may impact the aggregate demand and output of the economy of your country.
17. 2(c)9 marks· CAPE Economics Unit 2 · 2012 · Paper 2Identify THREE non-price determinants of aggregate supply and explain how EACH determinant influences the level of aggregate supply.
18. 2(c)(i)3 marks· CAPE Economics Unit 2 · 2013 · Paper 2Explain how the Classical school will respond to a recessionary gap.
19. 1(b)6 marks· CAPE Economics Unit 2 · 2018 · Paper 2Outline THREE factors that influence aggregate demand.
20. 1(c)(i)2 marks· CAPE Economics Unit 2 · 2018 · Paper 2Label the three curves in Figure 1 to show the aggregate demand curve AD1 in Year 1, AD2 in Year 2 (after shifting), and falling back to AD1 in Year 3.
21. 1(c)(ii)2 marks· CAPE Economics Unit 2 · 2018 · Paper 2Outline what will happen to equilibrium price and equilibrium quantity from Year 1 to Year 2.
22. 1(c)(iii)3 marks· CAPE Economics Unit 2 · 2018 · Paper 2In Year 3, assume that prices and wages are completely flexible downward. On Figure 1, identify the equilibrium point and label it 'b'. Also, label the equilibrium price and quantity of output on the axes of the graph.