06 The Economic Cycle AQA AS Economics (new spec) MACRO

This is one of a set of Powerpoints (and accompanying Notes/Key Terms sheets) that I have created for my own teaching of the macroeconomic topics in the new (linear) AQA AS Economics specification (7135). They follow the order of teaching recommended by the exam board and (generally) the AQA-approved textbook (Powell & Powell, 2015).

Key terms covered in this Powerpoint: (references to the specification):

3.2.3.1 Economic growth and the economic cycle
• The difference between short-run and long-run growth.
• The various demand-side and supply-side determinants of shortrun growth of real national income and the long-run trend rate of economic growth.
• The concept of the economic cycle and the use of a range of economic indicators, such as real GDP, the rate of inflation, unemployment and investment, to identify the various phases of the economic cycle.
• The difference between positive and negative output gaps.
• How demand-side and supply-side shocks, including those that occur in the global economy, affect domestic economic activity.