Download 8419 Demonstrate knowledge of fiscal policy and evaluate

NZQA registered unit standard
8419 version 5
Page 1 of 3
Title
Demonstrate knowledge of fiscal policy and evaluate its
effectiveness
Level
5
Credits
3
Purpose
People credited with this unit standard are able to: illustrate and
explain the government budget in the application of fiscal policy
using the aggregate demand/aggregate supply model; and
evaluate the effectiveness of fiscal policy.
Classification
Economic Theory and Practice > Macro Economics
Available grade
Achieved
Entry information
Recommended skills
and knowledge
Unit 8418, Investigate macroeconomic activity using the
aggregate demand/aggregate supply model, or demonstrate
equivalent knowledge and skills.
Explanatory notes
1
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.
A contemporary budget is one delivered to Parliament by the New Zealand Minister
of Finance in the three years prior to assessment of this unit standard. Information
relating to contemporary New Zealand budgets is available from The Treasury
website http://www.treasury.govt.nz/.
2
Legislation relevant to this unit standard includes but is not limited to Part 2 of the
Public Finance Act 1989.
Outcomes and evidence requirements
Outcome 1
Illustrate and explain the government budget in the application of fiscal policy using the
aggregate demand/aggregate supply model.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2017
NZQA registered unit standard
8419 version 5
Page 2 of 3
Evidence requirements
1.1
The purpose of fiscal policy is explained.
Range
1.2
equity and redistribution of income, stabilisation, provision of
public/collective goods.
The components of the budget are described in terms of the fiscal policy.
two of each – government expenditure, government revenue.
Range
1.3
The explanation establishes the net impact of government spending and taxes
on equilibrium.
includes – balanced budget, budget surplus, budget deficit;
impacts – contractionary, expansionary.
Range
Outcome 2
Evaluate the effectiveness of fiscal policy.
Evidence requirements
2.1
The evaluation describes possible outcomes of fiscal policy as illustrated by a
contemporary New Zealand budget.
2.2
The evaluation describes the limitations and shortcomings of fiscal policy as a
means of achieving economic stabilisation.
limitations and shortcomings may include – budgetary constraints,
crowding out effect, lags, lack of economic indicators, political
constraints, conflict between other economic objectives.
Range
Planned review date
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
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2017
NZQA registered unit standard
8419 version 5
Page 3 of 3
Consent and Moderation Requirements (CMR) reference
0116
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services [email protected] if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2017