Download Outcomes and evidence requirements

NZQA registered unit standard
8418 version 5
Page 1 of 3
Title
Investigate macroeconomic activity using the aggregate
demand/aggregate supply model
Level
5
Credits
3
Purpose
People credited with this unit standard are able to: demonstrate
understanding of; illustrate and explain inflation and stagflation
using; and illustrate and explain non-inflationary economic
growth using; the aggregate demand/aggregate supply model.
Classification
Economic Theory and Practice > Macro Economics
Available grade
Achieved
Explanatory notes
Definitions
Aggregate demand refers to the total demand for final goods and services in the economy
at a given time and price level.
Aggregate supply refers to the short-run aggregate supply, and is the relationship between
the aggregate quantity of goods and services supplied (real Gross Domestic Product) and
the price levels.
Aggregate supply curve plots the relationship between the quantity of real GDP supplied
and the price level, all else held constant.
Stagflation is inflation that occurs while the economy is contracting (stagnating) and real
output is declining.
Outcomes and evidence requirements
Outcome 1
Demonstrate understanding of the aggregate demand/aggregate supply model.
Evidence requirements
1.1
The derivation of the aggregate demand curve is explained in terms of
aggregate expenditure at different price levels.
1.2
The derivation of the aggregate supply curve is explained in terms of aggregate
production and cost behaviour at different output levels.
Range
1.3
explanation includes the distinction in shape between low output
levels and full employment.
The equilibrium level of output and the price level consistent with the aggregate
demand/aggregate supply model are established.
NZQA National Qualifications Services
SSB Code 130301
© New Zealand Qualifications Authority 2015
NZQA registered unit standard
1.4
The causes of shifts in the aggregate demand curve are described in terms of
the aggregate demand/aggregate supply model.
Range
1.5
8418 version 5
Page 2 of 3
includes – changes in government spending, investment,
consumption, net exports.
The causes of shifts in the aggregate supply curve are described in terms of the
aggregate demand/aggregate supply model.
Range
includes – changes to input prices, technology, productivity,
resource availability, climatic conditions.
1.6
Shifts in equilibrium level Gross Domestic Product (GDP) resulting from
performance criteria 1.4 and 1.5 are illustrated in terms of their impact on the
price level and real output.
1.7
The stability of equilibrium is explained and illustrated in terms of the market
forces which exist at disequilibrium.
Range
disequilibrium – one of – excess demand, excess supply.
Outcome 2
Illustrate and explain inflation and stagflation using the aggregate demand/aggregate
supply model.
Evidence requirements
2.1
The explanation and illustration shows the potential for aggregate demand to
produce price inflation by means of shifts in aggregate demand.
2.2
The explanation and illustration shows that a fall in aggregate supply has the
potential to increase prices and reduce output (stagflation).
Outcome 3
Illustrate and explain non-inflationary economic growth using the aggregate
demand/aggregate supply model.
Evidence requirements
3.1
The expansionary impact of outward shifts in the aggregate demand curve is
explained and illustrated.
3.2
Non-inflationary economic growth as a result of shifts of the aggregate supply
curve is explained and illustrated.
NZQA National Qualifications Services
SSB Code 130301
© New Zealand Qualifications Authority 2015
NZQA registered unit standard
Planned review date
8418 version 5
Page 3 of 3
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
29 October 1996
31 December 2016
Revision
2
21 July 1999
31 December 2016
Revision
3
14 September 2005
31 December 2016
Review
4
16 October 2009
31 December 2016
Rollover and
Revision
5
16 April 2015
N/A
0116
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Requirements for consent to assess and an outline of the moderation system that applies
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Comments on this unit standard
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suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
© New Zealand Qualifications Authority 2015