A Level>Notes>Theme 2: The UK economy – performance and policies

2.6.4 Conflicts and tradeoffs between objectves and policies    

2.6.3 Supply-side policies      

2.6.1 Possible macroeconomic objectives     Contractionary Transmission mechanism and austerity i) Strengths and weaknesses of demand-side policies Evaluatn the effectveness of monetary policy              ...

2.5.4 The impact of economic growth          

2.5.3 Trade(business) cycle  

2.5.2 Output gaps  

2.5.1 Causes of growth a) Factors which could cause economic growth Key Factors effecting Short-Run Economic Growth Key Factors effectng Long Run Economic Growth b) The distncton between actual and potental growth Actual growth – short run roftth – % increase in a...

2.4.4 The multplier e) Calculations of the multiplier using the formulae: 1/(1-MPC) and 1/MPW, where MPW=MPS+MPT+MPM f) The significance of the multiplier to shifts in AD    

2.4.2 Injectons and withdrawals  

2.4.1 Natonal income    

2.3.3 Long-run AS a) Different shapes of the long-run AS curve:  

2.3.2 Short-run AS  

2.3.1 The characteristcs of AS      

2.2.5 Net trade (X-M) a) The main influences on the (net) trade balance: Real income/ Exchange rates/ State of the world economy/ Degree of protectionism/ Non-price factors/ Price (of import)  

2.2.4 Government expenditure (G) a) The main influences on government expenditure:  

2.2.3 Investment (I) Investment is about seeking a return that isnnt defnitve b) Influences on investment: Causes of investment Example: Declining investment in steel plants in a recession or a drop in investment demand which government subsidies for renewable energy...

2.2.2 Consumpton (C) Consumpton in Economics is spending on consumer goods and services b) An understanding of the relatonship between savings and consumpton Savin is what isnnt spent of income, E.G. C + S = I (Income) c) Other influences on consumer spending:...

2.2.1 The characteristcs of AD c) The AD curve d) The distncton between a movement along, and a shift of, the AD curve Aggregate Demand Curve Shifts Outward Shift Interest rates Taxes rise Lower inflaton Firms expect Government Exchange rate Evaluaton Interest rates...

2.1.3 Employment and unemployment b) The distncton between unemployment and under-employment c) The signifcance of changes in the rates of: employment/ unemployment/ inactvity Labour scarring effect of high unemployment d) The causes of unemployment: e) The...

2.1.2 Inflaton  

2.1.1 Economic growth