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Year 12 Macro

Numbers in brackets below ie (2.1) refer to AQA syllabus sections.

Full AQA Econ syllabus is here (2nd. 3rd menu options)

Course Content

Helpful Acronyms

Some useful Acronyms:

MacroEconomic Policy Objectives (“MEPOs”)

GRUBI (Major Objectives)
EGO IN (Minor Objectives)

GR – Maximise Economic Growth

U – Minimise Unemployment

B – Neutral or Sustainable Balance of Payments in Long Run

I – Low and stable Inflation

E – Protect Environment consistent with Economic Growth

GO – Neutral Government Budget (Ie Tax Revenue about same as Expenditure in Long Run)

IN – Minimise Income Inequality

Things that move the SRAS curve = STOPCOW

S = Subsidies

TO = Taxes (On Firms – Indirect and Corporation Tax)

P = Productivity (Output per worker hour of input)

CO = COmmodity Prices and Currency Value

W= Wages

Things that move the LRAS curve = GREATCARD

Remember LRAS is POTENTIAL Economic Growth -> Output achievable if all resources are fully and efficiently employed

GR = Removal of Govt Regulation may increase Potential Economic Growth, lowering costs of Compliance to things like ULEZ / Health and Safety Legistlation (but Heads Up – lack of Regulation may introduce Moral Hazard and very occasional disasters like GFC)

E = Education…..More Ed = More Productivity / Inventions / Innovations by LABOUR; better choice, higher consumer utility, lower costs

AT = Advances in Technology = More Productivity / Inventions / Innovations FOR CAPITAL; better choice, higher consumer utility, lower costs

C = Competition / ContestAbility – how are markets structured. Generally speaking the higher the intensity of competition, the more efficient, better deal the consumer gets, and the more competitive is the pricing, product etc. in domestic and export markets, hence more contestability = LRAS moving right

R = Relative Productivity – Optimising the Mix of Land, Labour, Capital and Entrepreneurship, as Technology / Work patterns advance. This can only occur in the Long Run when all factors of production are flexible. [World history has been dominated by the increase in the use of Capital, but leaps forward are also made with improvements in Gender Equality, increasing potential workforce and access to (higher) Education]. Political beliefs affect organisation – Communist (Command) economies prefer to involve more Labour in production, to soak up pools of Unemployment, at the cost of potentially lower productivity.

D = Demographics – Composition of the workforce (and population in general) has dramatic effects on Long Run Supply. Migration, Wars, Baby Booms / Aging Population or Young Working Population, Effects of diseases like AIDS and COVID all affect ability to supply.

1. Intro & Macroeconomic Policy Objectives aka MEPOs (1.1, 1.2)

Introduction to Macroeconomics Y12

(last 2 slides have MEPOs)

Primary and Secondary effects of Economic Policies (Additional – we haven’t done this in class)

Heads up – moving the Ad and AS curves is covered at end of the Aggregate Supply ppts – exercises are in the next chapter

8. Macroeconomic equilibrium (exercises- 2.2)

Test AD-AS Diagrams

AD AS Quiz 1 to 3.docx

AD-AS Equilibrium and Factors Questions for Students.docx

AD AS Equilibrium and Factors QandA.pdf

9. Multiplier and Accelerator Effects (3.1)

Multiplier Effect 12B

Multiplier Effect 12C

Linking PPF to Economic Growth and Introducing the Accelerator Effect 12B

Linking PPF to Economic Growth and Introducing the Accelerator Effect 12C

10. Balance of Payments aka "BOP" (6.2 intro)

Balance of Payments 12B

Balance of Payments 12C

11. Monetary Policy aka "MP" (4.3)

Monetary Policy 12B

Monetary Policy 12C

12. Fiscal Policy aka "FP" (5.1)

Fiscal Policy 12B

Fiscal Policy 12C

13. Supply Side Policy aka "SSP" (5.2) + AS practice papers

Supply Side Policy 12B

Supply Side Policy 12C

Easter Fun With AS Papers!

Here are the AS (ie year 12) Macro and Microeconomics papers for 2018 with answers. Some great practice to be had at multiple choice, short answers and some longer answers. PLEASE DON’T WORRY ABOUT BREAKDOWN OF MARKS / FORMAT OF ANSWER ETC., These are just here for knowledge practice / retrieval of those subjects you may have done months ago but need a refresher.

Macro……

2018 Macro AS Question Paper AQA

2018 Extracts for 2018 AS Macro Paper (refered to in question paper above)

2018 Macro AS Mark Scheme AQA

Micro…..

2018 Micro AS Question Paper AQA

2018 Extracts for 2018 AS Micro Paper

2018 Micro AS Mark Scheme AQA