18 mark F582 Ensuring L3 analysis:. Specification “Discuss” Discuss how changes in aggregate demand and aggregate supply may affect output, unemployment.

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Presentation transcript:

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 Monetary JUNE 2013, JUNE 2011, JAN 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