MACRO Summary

Question 1

Adjustment process for AD lead EG

Answer 1

Multiplier process

Question 2

Adjustment process for AS led EG

Answer 2

Wealth, interest rate, and international substitution effects
(Just use 1)

Question 3

Adjustment process for change in AD leading to DD unemployment

Answer 3

Multiplier process
Focusing on change in derived DD for labour

Question 4

Adjustment process for structural unemployment

Answer 4

Explain
1. structures changes
2. occupational immobility

Question 5

Adjustment for DD-pull inflation

Answer 5

Less efficient factor combination

Question 6

Adjustment process for cost-push inflation

Answer 6

Pass on higher unit costs to consumer as higher prices