The national and international economy Study Guide

Study Guide: The National and International Economy

1. Government Economic Policy Objectives

• Understand the primary goals of government economic policies.
• Discuss how these objectives can conflict with one another.

2. Macroeconomic Indicators

• Learn about key indicators like GDP, inflation, and unemployment.
• Analyze how these indicators reflect economic health.

3. Index Numbers

• Explore how index numbers are constructed and used.
• Practice calculating and interpreting index numbers for price levels.

4. National Income Data

• Review the significance of GDP and GNI.
• Discuss how national income data is used in economic analysis.

5. Circular Flow of Income

• Diagram the circular flow model and explain its components.
• Analyze the implications of injections and withdrawals in the economy.

6. Aggregate Demand and Supply

• Define aggregate demand and supply.
• Examine factors that shift AD and AS curves.

7. Economic Growth and the Economic Cycle

• Understand the phases of the economic cycle.
• Discuss indicators of economic growth.

8. Inflation and Deflation

• Differentiate between inflation and deflation.
• Evaluate the impact of each on the economy.

9. Macroeconomic Policy Conflicts

• Analyze case studies where policy objectives conflict.
• Discuss potential solutions to these conflicts.

10. Globalisation and Trade

• Explore the effects of globalisation on national economies.
• Understand trade theories and their implications for policy.