Download Economics-GCE-Year-1-Unit-2

AS Macro-Economics Revision Checklist and Self Review
Syllabus Content
Notes
Micro Economics
What are the main government objectives? What are they important? What
can't you always achieve them all at the same time? Why do different
governments give different importance to different objectives?
What are three ways of measuring national income. What are the injections
The Circular flow of and withdrawals? What is a macro economic equilibrium? What do we mean
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income
by "full employment income"? How do changes in injections and withdrawals
affect the economy? What is the multiplier?
What are index numbers and how are they calculated? Why are they used?
3 Index Numbers
What is a basket of goods? What is the average family?
What are GDP, real GDP, GDP per capita, CPI, RPI, unemployment,
Macro economic
productivity, the balance of payments. Why should you be cautious about
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indicators
using data?
What is Aggregate demand? What is Aggregate Supply? What is macroAS/AD analysis in
economic equilibrium on a short run AS/ AD diagram? How does it change is
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the short run
either AD or AS shifts either left or right? How can global events affect UK AD
/ SRAS?
What is macro-economic equilibrium on a long run AS/ AD diagram? How
AS/AD analysis in
does it change is either AD or AS shifts either left or right? How can global
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the long run
events affect UK AD / LRAS?
What are the effects on the real economy of shifts of and movements along
the AD curve in terms of inflation, output, unemployment & the balance of
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payments?
What are the effects on the real economy of shifts of and movements along
the AS curve in terms of inflation, output, unemployment & the balance of
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payments?
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Objectives of
government policy
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Aggregate demand
What is the meaning of the equation: Y = C+I+G+(X-m).
and its components
10 The multiplier
What is the multiplier effect? How does it increase aggregate demand? What
determines the size of the multiplier? Can you calculate by comparing the
initial change in national income and the resulting change in AD?
11 Consumption
What is consumption? What are savings? What are the savings ratio,
average & marginal propensity to save and the average & marginal propensity
to consume? What determines consumption and savings?
12 Investment
What is investment? How is investment different to saving? What are the
determinants of investment? What is the Marginal Efficiency of Capital? What
is the accelerator?
What are the types of government expenditure and what determines their
size? How much choice does the government have over its spending in the
short run / long run?
How does the difference between imports and exports affect AD? What
Exports & Imports
determines the level of exports / imports?
Why is international trade important to the UK economy? What are the
The Balance of
components of the current account of the balance of payments? What things
Payments
affect the balance of payments on current account? What are primary income
and secondary income?
What are: the balance of payments, balance of trade, visible trade, invisible
trade?
What is aggregate supply? What is short run aggregate supply? What
Short run Aggregate
determines Aggregate Supply? What is the difference between a shift of
Supply
SRAS and a movement along it?
What is the difference between the short run and the long run AS curves?
Long run Aggregate What determines long run AS curve? What are the implications for economic
Supply
policy of the difference between long run and short run AS curves? What
other concept does LRAS measure?
What are sticky wages? How is the Keynesian LRAS different to the Classical
Keynesian V
LRAS?
Classical LRAS
What is economic growth? How can it be shown on PPBs & using AS / AD
diagrams? What is the difference between short run and long run economic
Economic Growth
growth and how can they be shown on a diagram. What things determines
the economic growth of an economy?
What is the economic cycle? What does it look like in a diagram? What are:
recessions, booms, slumps, growth. What is happening to the main economic
The economic cycle
indicators at each stage of the economic cycle? What does the recent data
about the growth of the economy show? 1
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Self Review
AS Macro-Economics Revision Checklist and Self Review
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What are positive and negative output gaps? What are the implications for
the economic indicators of each type of output gap?
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What is the difference between unemployment and employment? Why are
they important? Why does an increase in employment not always mean that
unemployment goes down? How do changes in each influence AD & AS and
how can AD & AS influence them? What types of unemployment are there?
How is unemployment shown on a PPB diagram? Why would you use
different policies to get rid of different types of unemployment?
Employment &
Unemployment
What are inflation & deflation? What is the difference between deflation and
disinflation? What are demand pull and cost push inflation? How can world
24 Inflation & deflation
commodity prices affect inflation? How can changes in other economies affect
UK inflation?
25 The exchange rate
What is the exchange rate? What is an appreciation / depreciation? How
does the exchange rate affect import and export prices and therefore the
volume and value of imports and exports in both the short run and long run?
How does the Ped for imports affects the balance of payments?
26 Fiscal policy
What is fiscal policy? What types of fiscal policy are there? How does it
influence AD & therefore the level of economic activity, including inflation,
employment & the balance of trade? What is the difference between a loose
(inflationary) policy and a tight (deflationary) policy? What is the difference
between direct and indirect taxes? What are the difference between
progressive, proportional and regressive taxes? How does the budget
balance affect the total national debt?
27 Monetary policy
What is monetary policy? What are the government's objectives for monetary
policy? What is the role of the monetary policy committee? What is the
interest rate transmission mechanism? How does monetary policy influence
AD & AS & therefore the level of economic activity, including inflation,
employment & the balance of trade? What is the difference between a loose
(inflationary) policy and a tight (deflationary) policy?
What are supply side policies? How are they different to supply side
improvements? How does it affect both LRAS & AD? How does it affect the
28 Supply side policies
trend rate of growth (long run economic growth), short run economic growth,
unemployment, inflation & balance of payments?
29 In essays
always focus on the question for every point
30 In essays
write points in PEEL paragraphs
31 In essays
Use "link backs" in your PEEL paragraphs
32 In essays
Use "connectives" to link sentences in your PEEL paragraphs
33 In essays
weigh up alternatives to help make a decision in the conclusion
34 In essays
Can use a diagram to help make a point, properly explaining and what the
diagram shows
35 In essays
can use information from the text & data to help answer the question
36 Using data
can compare the beginning & the end, quoting data and the units of the data
37 Index numbers
can calculate and interpret an index number
38 Percentages
can calculate a percentage change
39 Using data
Can you compare the beginning & the end, quoting data and the units of the
data?
40 Using data
Do you understand how to calculate, use and understand ratios and fractions?
41 Using data
Do you understand and the terms mean, median?
42 In essays
Do you always focus on the question for every point?
43 In essays
Do you write points in PEEL paragraphs?
44 In essays
Do you use "link backs" in your PEEL paragraphs?
45 In essays
Do you use "connectives" to link sentences in your PEEL paragraphs?
46 In essays
Do you weigh up alternatives to help make a decision in the conclusion?
Can you use a diagram to help make a point, properly explaining and what the
diagram shows?
47 In essays
48 In essays
Can you use information from the text & data to help answer the question?
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