Answers and Explanations
1. C（Macro）
Explanation: A fall in exchange rates can boost exports to improve GDP, the aggregate demand curve will shift to the right.
2. D（Macro）
Explanation: B and D both show conditions where an increase in money supply is most likely to cause inflation, because falling output (Q ↓) or rising velocity (V ↑) amplifies the inflationary effect. D is the strongest case (because both higher V and lower Q push P upward).
3. A（Macro）
Explanation: Many central banks aim for an inflation target of around 2% per year. This level is considered low enough to maintain price stability while avoiding deflation risks.
4. B（Macro）
Explanation: Most countries (e.g., the U.S. Bureau of Labor Statistics, Eurostat, UK ONS) publish official unemployment data every month.
5. B（Macro）
Explanation: In economics, investment means spending on capital goods — such as buildings, equipment, and machinery — that increases future production capacity. Businesses make most of these investments to expand or maintain their productive operations.
6. B（Micro）
Explanation: Since MSB > MPB, the market fails to capture all the benefits ofconsumption.
7. D（Micro）
Explanation: Substitute effect: When Samsung raises prices, consumers may switch to rival brands, reducing Samsung's revenue despite higher prices. The demand for Samsung TVs is elastic, a price increase leads to a more than proportionate decrease in quantity demanded, meaning revenue falls.
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