Transcript 18 mark F582 - mrshearingeconomics

18 mark F582
Ensuring L3 analysis:
Specification “Discuss”
•
Discuss how changes in aggregate demand and aggregate supply may affect
output, unemployment and inflation. JUNE 2009
• Discuss the costs, benefits and sustainability of economic growth JUNE 2010
• Discuss the consequences of:
– unemployment
– inflation JAN 2012
– a deficit or surplus on the current account of the balance of payments
• Discuss, using the AD and AS model, the effective of policies meeting macro
objectives for:
- Fiscal JUNE 2012, Jan 2011
- Monetary JUNE 2013, JUNE 2011, JAN 2010
- Supply side JAN 2009
• Discuss the reasons for, and consequences of, possible conflicts between
policy objectives
Discuss whether a rise in a country’s
exchange rate will always reduce its
inflation rate.
June 2013
Is a decrease in aggregate supply always
harmful to national economic performance?
Jan 2013
Discuss whether an increase in
Government spending will always
increase a countries economic
growth rate?
June 2012
Discuss whether inflation always
harms an economy?
Jan 2012
Discuss the effectiveness of
lowering the rate of interest to
stimulate economic growth.
June 2011
Discuss the effectiveness of
reducing government spending to
lower demand-pull inflation.
Jan 2011
Discuss the extent to which
economic growth may benefit an
economy.
June 2010
Discuss how a reduction in the rate
of interest may affect consumer
expenditure and investment.
Jan 2010
Discuss the extent to which an
increase in aggregate demand may
affect output, unemployment and
inflation.
June 2009
How effective can supply side
policies be in reducing rises in the
general price level.
Jan 2009
Unemployment – Consequences/Solutions
L3 & L4
Current Account Balance
Samuel Tombs of Capital Economics said he expected inflation to fall even further. "A favourable combination
of lower import prices, flat commodity prices and recovering productivity is likely to help CPI inflation fall
further, perhaps to about 1% by the end of the year," he said.
As well as the impact of a drop in petrol prices, the ONS said the price of clothing and footwear had also
increased at a slower pace than the same period last year, and energy bills also had a downward effect on
inflation.
However, the price of furniture and home furnishings rose by more than last year, the ONS said.
L3 & L4
Conflicting Macro Objectives
L3 & L4