2026-W15

Expectations about future prices drive most mistakes; AD/monetary shifts remain a strength

This week learners struggled most with how producer expectations change current supply and with currency effects of imports, while AD/monetary curve movements are well understood.

Published April 19, 2026

Total attempts

141

Unique learners

Average score

80.8%

Overall question accuracy

78.4%

Lowest item accuracy

0% (FX: import effect on dollar)

1. Weekly Overview

Supply expectations cause the biggest errors; monetary AD/AS concepts are solid.

Aggregate quiz data (141 attempts, 26 users) shows a high overall score (avg 80.8%) but consistent errors where producers' expectations change current supply and where import demand affects exchange rates. By contrast, questions about how interest-rate moves shift AD/SRAS/LRAS were answered correctly at high rates.

Student takeaway: Prioritise practice on how expectations change current supply and on currency flows from imports; revisit diagram work on AD/AS effects of fiscal policy (taxes/subsidies).

2. Key Patterns

Main Insights

Expectation-driven supply shifts are a major weak point (Micro, unit 2.2)

Multiple medium-difficulty supply questions about producers' expectations (oil, wheat) had very low correct rates (21% and 39%) and above-average response times, indicating systematic errors when reasoning about how expectations affect current supply.

Advice: Work specific examples: if sellers expect future price rises, practise sketching the current supply curve moving left as suppliers withhold output; if a fall is expected, show supply rising now. Do 6–8 targeted MCQs and sketch each scenario.

Strong understanding of AD/monetary policy shifts (Macro, unit 3.5)

Several AD–SRAS–LRAS items about how interest-rate changes and QE shift curves had very high correct rates (≈90%+), showing good mastery of short-run monetary effects on AD and the long-run supply implications of sustained policy.

Advice: Keep practising diagram fluency: label which curve moves first (AD vs SRAS vs LRAS) and why; explain short-run vs long-run channels in one-sentence answers after each diagram.

Currency effects from increased imports are misunderstood (Global Economy, unit 4.5)

A question where US households sharply increased imports of EU cars had 0% correct answers and long average time, suggesting confusion about how import demand affects the domestic currency in FX markets.

Advice: Review transactions approach: map the buyer/seller and currency flows (who sells dollars, who buys euros) and then translate to demand/supply of the dollar. Practice 4 short scenarios (imports up, exports up, capital inflow, capital outflow).

3. Revision Plan

Priority Areas

Producer expectations and current supply · 2.2

Highest error rates on supply-expectation questions (oil, wheat).

Action: Do targeted practice: sketch supply shifts under different expectation scenarios and complete 6 MCQs that require choosing direction of current supply.

Exchange rates and trade flows · 4.5

0% correct on an import-driven FX question signals conceptual gaps.

Action: Practice 4 short currency-flow diagrams (imports/exports and capital flows), then answer explanatory 2-sentence reasoning for each.

Fiscal policy effects on AD in the short run · 3.6

Several fiscal-policy AD questions had elevated wrong rates; students confuse which policy element shifts AD vs SRAS.

Action: Work through 5 AD/SRAS diagrams: apply specific fiscal changes (tax rise, subsidy cut) and state which curve shifts and why.

Long-run vs short-run supply effects (AD–SRAS–LRAS) · 3.5

Mixed response times and some uncertainty on long-run curve shifts after prolonged policies.

Action: Summarise in one page: channels that convert short-run monetary/fiscal choices into LRAS shifts and practice 3 exam-style long-run scenarios.

4. Question Evidence

Featured Questions

Most Wrong Questions

Question	Topic	Unit	Attempts	Correct	Wrong	Avg Time
To cool an overheating economy with high inflation, the government reduces subsidies to firms and simultaneously increases indirect taxes (like VAT) on consumer spending. In the short run, how does this fiscal policy affect aggregate demand in the AD–SRAS diagram?	Macroeconomics	3.6	19	36.8%	63.2%	29.6 s
Oil producers expect the price of oil to rise sharply next month. What is likely to happen to the current market supply of oil?	Microeconomics	2.2	14	21.4%	78.6%	27.9 s
Farmers expect the price of wheat to fall significantly in the near future. What is likely to happen to the current market supply of wheat?	Microeconomics	2.2	18	38.9%	61.1%	21.8 s
For an extended period, the European Central Bank (ECB) keeps interest rates very high to fight inflation, causing firms across the euro area to cut back on long-term investment projects. In the AD–SRAS–LRAS model, which curve is most likely to shift in the long run due to this sustained monetary stance, and in which direction?	Macroeconomics	3.5	22	50.0%	50.0%	13.6 min
US households greatly increase their purchases of imported electric cars from Europe. How does this affect the dollar in the foreign exchange market?	Global Economy	4.5	8	0.0%	100.0%	1.6 min

Most Correct Questions

Question	Topic	Unit	Attempts	Correct	Wrong	Avg Time
Over many years, the central bank of Ibonomica maintains low and stable interest rates, encouraging persistent increases in private investment in new technologies and capital equipment. In the AD–SRAS–LRAS diagram, which curve is most likely to shift in the long run as a result of this monetary policy, and in which direction?	Macroeconomics	3.5	21	90.5%	9.5%	29.7 s
The US Federal Reserve (Fed) sharply raises interest rates to reduce inflation that is well above target. In the AD–SRAS framework, which curve is primarily affected in the short run, and how does it move?	Macroeconomics	3.5	21	90.5%	9.5%	26.4 s
The central bank of Ibonomica announces a significant cut in its policy interest rate to combat a recession and high unemployment. In the AD–SRAS diagram, which curve is most likely to shift in the short run, and in which direction?	Macroeconomics	3.5	17	100.0%	0.0%	38.0 s
The government faces a large inflationary gap, with actual output above the full-employment level and rising demand-pull inflation. It responds by cutting government investment projects and raising income taxes. In the AD–SRAS framework, which curve shifts in the short run, and in which direction?	Macroeconomics	3.6	17	100.0%	0.0%	29.6 s
The European Central Bank (ECB) launches a large-scale asset purchase programme (quantitative easing) to prevent deflation in the euro area. In the standard AD–SRAS model, which curve shifts first in response to this policy, and in which direction?	Macroeconomics	3.5	16	87.5%	12.5%	40.6 s

Most Time Spent Questions

Question	Topic	Unit	Attempts	Correct	Wrong	Avg Time
Why might a loss-making perfectly competitive firm continue to operate in the short run but shut down in the long run?	Microeconomics	2.11	3	100.0%	0.0%	17.0 min
For an extended period, the European Central Bank (ECB) keeps interest rates very high to fight inflation, causing firms across the euro area to cut back on long-term investment projects. In the AD–SRAS–LRAS model, which curve is most likely to shift in the long run due to this sustained monetary stance, and in which direction?	Macroeconomics	3.5	22	50.0%	50.0%	13.6 min
What does nominal GDP measure?	Macroeconomics	3.1	8	100.0%	0.0%	10.6 min
The government removes a indirect tax on fortnite skins. What happens to the supply curve of fortnite skins?	Microeconomics	2.2	3	100.0%	0.0%	9.4 min
Which factor would make supply more inelastic?	Microeconomics	2.6	3	100.0%	0.0%	7.7 min

5. Conclusion

Target expectations and FX practice this week

Focus revision on expectation-driven supply shifts and the mechanics of currency flows from imports; reinforce with diagram practice for fiscal policy effects on AD and a few timed MCQs to build speed and confidence.

Note: This weekly report is automatically generated and may contain mistakes. Always double-check key points before using them for revision.

This report is based on anonymized aggregate quiz activity (weekly summary) and does not contain or imply any individual student data.