Classic effects

Question 1

Classic micro effects (7)

Answer 1

• Price
• Choice
• Demand, supply and their elasticities
• Revenues/profits
• Efficiencies
• Impacts on key stakeholders
• Market failures
• Externalities

Question 2

Classic macro effects (6)

Answer 2

• Unemployment
• Inflation
• Trade balance
• Government expenditure, taxation, and deficit
• Income inequality
• AD / AS
• Multiplier