AS Macroeconomics – National Economy in Global Context

Notes

Measurement of Macroeconomic Performance

• a) The objectives of government economic policy
• b) Macroeconomic indicators
• c) Uses of index numbers

How the Macroeconomy Works

• a) The circular flow of income
• b) Aggregate demand and aggregate supply analysis
• c) The determinants of aggregate demand
• d) Aggregate demand and the level of economic activity
• e) Determinants of SRAS
• f) Determinants of LRAS

Economic Performance

• a) Economic growth and the economic cycle
• b) Employment and unemployment
• c) Inflation and deflation
• d) The balance of payments on current account
• e) Possible conflicts between macroeconomic policy objectives

Macroeconomic Policy

• a) Monetary policy
• b) Fiscal policy
• c) Supply-side policies