Unit 2 Macroeconomic Performance and Policy
2.3.1 Measures of economic performance
- Economic
- Inflation
- Employment and unemployment
- Balance of Payments
- Measures of development
- Other measures of development
2.3.2 The circular flow of income
- National income
- Injections and withdrawals
2.3.3 Aggregate demand (AD)
- The characteristics of AD
- Consumption (C
- Investment (I)
- Government expenditure (G)
- Exports – Imports (X-M)
2.3.4 Aggregate supply (AS)
- The characteristics of AS
- Short-run and long-run AS
2.3.5 The interaction of AD and AS to determine equilibrium
- Equilibrium level of real output
- The multiplier
2.3.6 Economic growth
- Causes of growth
- Constraints on growth
- Benefits of growth
- Costs of growth
- Output gaps
2.3.7 Macroeconomic objectives and policies
- Macroeconomic objectives
- Conflicts between objectives
- Macroeconomic policy instruments