Answer these questions

1- The table below shows the annual percentage change in real GDP for an economy between 2013 and 2016. The long-run trend rate of growth for this economy is estimated to be 2.8%. Which one of the following statements is most likely to be correct? I A In 2013, the economy's negative output gap increased. increased. 0 In 2015, the amount of spare capacity in the economy decreased. B in 2014, the amount of spare capacity in the economy IE D in 2016, the economy's positive output gap decreased. The diagram below shows the aggregate demand (AD) and the short-run aggregate supply (SRAS) curves for an economy, with the initial equilibrium being at point X. Price level 0 Real national output All other things being equal, what would be the new equilibrium position following a rise in productivity and an increase in imports into the country? A Points B PointT C Point U @EEW t) PointV [1 mark] The diagram below shows two aggregate demand curves (AD) and two long-run aggregate supply curves (LRAS) for an economy. The economy's initial equilibrium point is at E1. Price level LRAS1 LRA82 0 Y1 Y2 Real national output All other things being equal, which one of the following combinations of macroeconomic policies. A, B, C or D, is most likely to have moved the economy to its new equilibrium point at E2? Monetary policy Fiscal policy increase in interest rates increase in Value Added Tax AT Reduction 1n Interest Reduction in direct taxes rates . . Reduction in Value Increase in Interest rates Added Tax AT Reduction m Interest increase in direct taxes rates UOUJI' EEEE [1 mark] 2 1 The accelerator principle illustrates the relationship between investment and the rate of change of A unemployment. O B prices. O C government spending. O D national income. O [1 mark]2 2 The diagram below shows an economy's aggregate demand (AD) and long run aggregate supply (LRAS) curves. OY, is the initial equilibrium level of real output. Price LRAS2 LRAS, level P1 AD1 - AD2 O Y2 Y1 Real national output Which one of the following combination of events is likely to lead to a new equilibrium level of output of OY 2? Event 1 Event 2 A fall in the quantity An increase in A and productivity of imports relative O labour in the economy to exports Increased government An increase in B spending on the cost of O education and training consumer credit A decline in factor C A fall in the mobility in the O exchange rate economy Greater use of new D technology across the A rise in indirect O taxes economy [1 mark]