1. IB Economics SL Syllabus Content Review Section 3: Macroeconomics

2.  3.1 Measuring national income Circular flow of income Methods of measurement - income, expenditure and output Distinction between  gross and net  national and domestic  nominal and real  total and per capita  3.2 Introduction to development Definitions of economic growth and economic development Differences in the definitions of the two concepts Gross Domestic Product (GDP) vs. Gross National Product (GNP) as measures of growth Limitations of using GDP as a measure to compare welfare between countries Allowance for differences in purchasing power when comparing welfare between countries Alternative methods of measurement Problems of measuring development

3. Introductory Macroeconomics:  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page18.htm http://www.bized.ac.uk/stafsup/options/qbank/page18.htm  Macroeconomic policy objectives GDP growth  Review Quiz: http://www.tutor2u.net/quiz/economics/jbc_econ_econg rowth_1.htm http://www.tutor2u.net/quiz/economics/jbc_econ_econg rowth_1.htm Unemployment Inflation Balanced budget Positive balance of trade

4. Circular flow diagram  Injections Exports Consumption Government savings Investment (capital)  Leakages Savings Taxes imports  Equilibrium

5. National income  Review Quiz: http://www.tutor2u.net/quiz/economics/jbc_econ_national _output.htm http://www.tutor2u.net/quiz/economics/jbc_econ_national _output.htm  National income accounting  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page21.ht m http://www.bized.ac.uk/stafsup/options/qbank/page21.ht m  IB Review Questions:  http://www.bized.ac.uk/stafsup/options/qbank/p age22.htm http://www.bized.ac.uk/stafsup/options/qbank/p age22.htm

6. 3.3 Macroeconomic models Aggregate demand - components Aggregate supply  short-run  long-run (Keynesian vs. neo-classical approach)  Full employment level of national income  Equilibrium level of national income  Inflationary gap  Deflationary gap Diagram illustrating trade/business cycle

7. AS/AD  IB Review Questions: Keynes and Classics: http://www.bized.ac.uk/stafsup/options/qbank/page19.htm http://www.bized.ac.uk/stafsup/options/qbank/page19.htm  Review Quiz: http://www.tutor2u.net/quiz/economics/jquiz_econ_adas_test1.h tm http://www.tutor2u.net/quiz/economics/jquiz_econ_adas_test1.h tm  Review Quiz: http://www.tutor2u.net/quiz/economics/jquiz_econ_ad_as2.htm http://www.tutor2u.net/quiz/economics/jquiz_econ_ad_as2.htm

8. AS/AD Derivation  AD Shifts due to monetary policy Shifts due to fiscal policy  Contractionary and expansionary  AS Shifts in AS  investment, supply side policy, etc Shape of AS curve; effects of shifts  GDP = C + I + G + (x-m)

9. Monetary policy Fiscal policy  Review Quiz: http://www.tutor2u.net/quiz/economics/jbc_econ_fiscalpolicy_1. htm http://www.tutor2u.net/quiz/economics/jbc_econ_fiscalpolicy_1. htm  Monetary Policy Role of FED MV = PQ  Fiscal Policy G: government spending  The ‘budget’; it is not necessarily excess, but rather it is ALL government spending Tax policy  Can encourage or discourage behavior

10. Unemployment  Review Quiz: http://www.tutor2u.net/quiz/economics/jbc_econ_unempl oyment_1.htm http://www.tutor2u.net/quiz/economics/jbc_econ_unempl oyment_1.htm  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page29.htm http://www.bized.ac.uk/stafsup/options/qbank/page29.htm  Definitions Cyclical, structural, seasonal, frictional  Costs  Causes  Policies and tools available

11. Inflation  Review Quiz: http://www.tutor2u.net/quiz/economics/jbc_econ_inflation_1.htm http://www.tutor2u.net/quiz/economics/jbc_econ_inflation_1.htm  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page30.htm http://www.bized.ac.uk/stafsup/options/qbank/page30.htm  Definition  Index  Costs  Causes  Policies and tools available

12. Unemployment – inflation trade off  Phillips curve  Online review presentation: http://www.tutor2u.net/decks/econdeck61.asp http://www.tutor2u.net/decks/econdeck61.asp  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page31.htm http://www.bized.ac.uk/stafsup/options/qbank/page31.htm

13. Supply side vs. demand management  Online presentation: Supply side economics: http://www.tutor2u.net/decks/econdeck56.asp http://www.tutor2u.net/decks/econdeck56.asp  Government policy and regulation  IB Review Questions: http://www.bized.ac.uk/stafsup/options/qbank/page35.htm http://www.bized.ac.uk/stafsup/options/qbank/page35.htm  Multiplier vs crowding out

14. General Review:  Macro economics Review Quiz:  http://www.tutor2u.net/quiz/economics/jquiz_econ_ad_as 2.htm http://www.tutor2u.net/quiz/economics/jquiz_econ_ad_as 2.htm  http://www.tutor2u.net/quiz/economics/jbc_econ_test_as_ macro_2.htm http://www.tutor2u.net/quiz/economics/jbc_econ_test_as_ macro_2.htm