one sentence answers

Question 1

demand and supply side shifts

Answer 1

Micro changes in individual market conditions (e.g. costs, preferences) can cause macro-level shifts in aggregate demand or supply, affecting national output and inflation.

Question 2

government intervention policies

Answer 2

Policies that correct microeconomic market failures (e.g. taxes, subsidies) often influence macroeconomic outcomes such as growth, employment, and inflation.

Question 3

Price Volatility Causes

Answer 3

Micro-level volatility in inelastic markets (like oil or food) can drive macro-level instability through inflationary pressures and trade imbalances.

Question 4

Competitive vs Concentrated Markets

Answer 4

The microstructure of markets (competition vs monopoly) affects macro performance by influencing productivity, price stability, and long-term economic growth.

Question 5

Monopoly Regulation

Answer 5

Microeconomic regulation of monopolies aims to improve efficiency, which can feed into macroeconomic productivity gains and better resource allocation.

Question 6

Privatisation and Deregulation

Answer 6

Changes to microeconomic incentives via privatisation or deregulation can lead to macroeconomic supply-side improvements in output and investment.

Question 7

Labour Market Themes

Answer 7

Microeconomic changes in labour supply, skills, and wage-setting affect macroeconomic variables like unemployment, inflation (via wage growth), and productivity.

Question 8

Inequality and Poverty

Answer 8

Micro-level disparities in income and access to resources can hinder macro-level outcomes like sustainable growth, social cohesion, and fiscal stability.

Question 9

Business Growth Reasons

Answer 9

Firms growing for microeconomic reasons like profit or market share can contribute to macroeconomic growth, employment, and international competitiveness.

Question 10

Growth, Unemployment, Inflation, Deflation

Answer 10

These macroeconomic indicators are shaped by micro-level behaviours, such as consumer demand, wage-setting, and firm pricing decisions.

Question 11

Macroeconomic Policy (Monetary/Fiscal)

Answer 11

Macroeconomic policies influence microeconomic decision-making by changing incentives for consumption, saving, and investment at the individual and firm level.

Question 12

Globalisation

Answer 12

Micro-level integration of firms and markets under globalisation drives macro trends in trade, investment, growth, and employment.

Question 13

Current Account

Answer 13

A deficit or surplus in the macro-level current account often reflects micro-level trade competitiveness and consumer preferences.

Question 14

Exchange Rates

Answer 14

Changes in exchange rates affect micro decisions on exports, imports and investment, while influencing macroeconomic variables like inflation and growth.

Question 15

Economic Development

Answer 15

Micro factors such as education, healthcare, and enterprise underpin macroeconomic development outcomes like rising GDP per capita and improved living standards.

Question 16

FDI (Foreign Direct Investment)

Answer 16

Micro-level firm decisions to invest abroad impact macro-level outcomes such as capital inflows, productivity, and employment.

Question 17

Competitiveness

Answer 17

Improving microeconomic efficiency (costs, innovation) boosts a country’s macroeconomic competitiveness and trade performance.

Question 18

Financial Market Regulation

Answer 18

Micro regulation ensures firm-level stability, which supports macroeconomic financial stability and reduces systemic risk.