02 Macroeconomic Objectives and Indicators (pt. 2)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: (referenced to the specification):
3.2.1.1 The objectives of government economic policy
• The main objectives of government macroeconomic policy: economic growth, price stability, minimising unemployment and a stable balance of payments on current account.
• The possibility of conflict arising, at least in the short run, when attempting to achieve these objectives.
Students should be aware that governments may also have other objectives of macroeconomic policy, such as balancing the budget and achieving an equitable distribution of income.
They should be aware that the importance attached to the different objectives changes over time.
3.2.1.2 Macroeconomic indicators
• Data which is commonly used to measure the performance of an economy, such as: real GDP, real GDP per capita, Consumer
Prices and Retail Prices Indices (CPI/RPI), measures of unemployment, productivity and the balance of payments on current account.
3.2.1.3 Uses of index numbers
• How index numbers are calculated and interpreted, including the base year and the use of weights.
• How index numbers are used to measure changes in the price level and changes in other economic variables.