Transcript AS 3.5 Demonstrate understanding of macro

A.S 3.5
Demonstrate understanding of
macro-economic influences on the
New Zealand Economy
6 Credits
Macro – Economic Indicators
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Inflation Rate
Economic Growth
Unemployment
Current Account Balance
Government Goals
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Price Stability
Economic growth
A balanced current account
Full employment
Government Policies
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Monetary Policy
Fiscal Policy
Supply side polices
Trade agreements
Calculations!!
• Some calculations you may need to make in
this A.S
– Rate of growth
– Rate of inflation
– Terms of Trade
– Operating Balance
– Balance of Payments
• current account balance
– The multiplier effect
Calculations
• Real GDP =
𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐺𝐷𝑃
𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 (𝐶𝑃𝐼)
× 1000
• Where CPI is the official measure of inflation
in New Zealand.
Do Now – Economic Growth
If the government had a macro- economic goal to achieve 4%
economic growth, the data above to explain whether the goal
was achieved ?
Economic Growth =
140646 −137216
×
137216
100
= 2.50% (2dp)
This means the goal of reaching 4% economic growth by the government was not
reached as in the year 2010 the NZ economy only achieved 2.50% economic growth
Worksheet - GDP
2a.
Answers