1.What are the factors influencing the SRAS?

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Price (directly related), price of factors, wages and expected price, technology change, K, human capital. Price causes a movement along the SRAS but the rest are shifters.2.Distinguish between national saving and investment in a closed economy and an open economy.

3.(calculation of national saving and NCO)

4.Why is the LRAS curve drawn vertically at the natural output level?

Because LRAS is not affected by price level. It is only affected by changes in technology, K and human capital development.

5.(exchange rate and PPP question)

6.Explain the 4 macroeconomic objectives of a nation.

Full employment, low inflation/price stability, economic growth, equilibrium in the balance of payments.

7.(AD, SRAS and short run Phillips curve model)

8.

This study resource was

(SRPhillips curve to explain the impact of monetary policy on unemployment and inflation)