1. A.S 3.5 Demonstrate understanding of macro-economic influences on the New Zealand Economy 6 Credits

2. Macro – Economic Indicators
Inflation Rate
Economic Growth
Unemployment
Current Account Balance

3. Government Goals Price Stability Economic growth
A balanced current account
Full employment

4. Government Policies Monetary Policy Fiscal Policy Supply side polices
Trade agreements

5. Calculations!! Some calculations you may need to make in this A.S
Rate of growth
Rate of inflation
Terms of Trade
Operating Balance
Balance of Payments
current account balance
The multiplier effect

6. Calculations Real GDP = 𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐺𝐷𝑃 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 (𝐶𝑃𝐼) ×1000
Where CPI is the official measure of inflation in New Zealand.

7. Do Now – Economic Growth
If the government had a macro- economic goal to achieve 4% economic growth, the data above to explain whether the goal was achieved ?
Economic Growth = − ×100
= 2.50% (2dp)
This means the goal of reaching 4% economic growth by the government was not reached as in the year 2010 the NZ economy only achieved 2.50% economic growth

8. Worksheet - GDP
2a.

9. Answers