Past Exam Questions Macro with Correct Answers 100% Verified and Graded A+ 2026

Past Exam Questions Macro with Correct Answers 100% Verified and Graded A+ 2026 Which one of the following statements about saving is correct? A Saving is a component of aggregate demand. B Saving can finance investment expenditure. C In the short run, less household saving means less consumption. D Increased saving increases demand-pull inflationary pressure. - Correct Answer B Which one of the following is most likely to shift the short run aggregate supply curve to the right? A A fall in money wages B A reduction in government spending C A fall in the exchange rate D A decrease in the productivity of labour - Correct Answer A All other things being equal, an economy is most likely to experience inflation if A aggregate supply increases at a faster rate than aggregate demand. B the country runs a balance of trade deficit at full employment. C aggregate demand is increased when the economy is on its production possibility frontier. D the government runs a budget deficit when long run aggregate supply increases. - Correct Answer C A sustained rise in the exchange rate is most likely to increase A inflation. B unemployment. C economic growth.