MACROECONOMIC GUIDE
Key:
Key terms
Evaluation
Context
Macroeconomic 25 marker
1) Think about question type
- Discuss one policy
- Discuss more than one policy
Intro:
- 2 definitions of keywords
- Refer to case study
- Introduce one side of the argument, good or bad for performance of the UK
- Refer to macroeconomic objectives
Para 1:
- 1st diagram
- Flesh out argument in intro
- If talking about AD include the components AD = C+I+G+X-M
- Analysis of diagram (chains)
- Application
- Evaluation, can talk about multiplier effect
Para 2:
- 2nd diagram
- Counter-argument
- Analysis of diagram
- Application
- Evaluation
Para 3:
- 3rd diagram if you have time
- What could the gov to intervene, monetary/ fiscal policy
- Analysis of diagram
- Application
- Evaluation
, Conclusion:
- Weight up arguments to come to a final conclusion
- Using STEWS
- Depends on arguments
- Include context on the UK economy
- ‘The extent to which supply-side policies control inflation depend on…’
Evaluation points
Trading partners – Talking about trade? The extent imports or exports will change
depends on our trading partner’s economies (are they in a recession or boom?).
Opportunity cost- Could the money have been better spent elsewhere?
Effectiveness – Think of a limitation to your argument that would limit its
effectiveness or demonstrate why it would be very effective.
Duration- It depends on how long the economic factor (in the question) will last for.
Elasticity of demand – Especially useful when talking about trade – how much
imports or exports will change depends on the elasticity of demand for imports and
exports. Also useful when talking about reliance on other economies for our raw
materials.
Magnitude – It depends on the size of the change.
Inequality – The change in the economic factor may affect different people in
different ways. For example a regressive tax can be unfair towards lower income
groups because it will account for a larger proportion of their income than richer
individuals.
Spare capacity – The effectiveness of a change in an economic factor may depend on
how much spare capacity there is in the economy. For example, the extent to which
inflation will occur depends on the amount of spare capacity in the economy.
Evaluative quotes – You will have found evaluative quotes for each para. Once you
have quoted the extract, explain how the quote influences the significance of your
argument.
Key:
Key terms
Evaluation
Context
Macroeconomic 25 marker
1) Think about question type
- Discuss one policy
- Discuss more than one policy
Intro:
- 2 definitions of keywords
- Refer to case study
- Introduce one side of the argument, good or bad for performance of the UK
- Refer to macroeconomic objectives
Para 1:
- 1st diagram
- Flesh out argument in intro
- If talking about AD include the components AD = C+I+G+X-M
- Analysis of diagram (chains)
- Application
- Evaluation, can talk about multiplier effect
Para 2:
- 2nd diagram
- Counter-argument
- Analysis of diagram
- Application
- Evaluation
Para 3:
- 3rd diagram if you have time
- What could the gov to intervene, monetary/ fiscal policy
- Analysis of diagram
- Application
- Evaluation
, Conclusion:
- Weight up arguments to come to a final conclusion
- Using STEWS
- Depends on arguments
- Include context on the UK economy
- ‘The extent to which supply-side policies control inflation depend on…’
Evaluation points
Trading partners – Talking about trade? The extent imports or exports will change
depends on our trading partner’s economies (are they in a recession or boom?).
Opportunity cost- Could the money have been better spent elsewhere?
Effectiveness – Think of a limitation to your argument that would limit its
effectiveness or demonstrate why it would be very effective.
Duration- It depends on how long the economic factor (in the question) will last for.
Elasticity of demand – Especially useful when talking about trade – how much
imports or exports will change depends on the elasticity of demand for imports and
exports. Also useful when talking about reliance on other economies for our raw
materials.
Magnitude – It depends on the size of the change.
Inequality – The change in the economic factor may affect different people in
different ways. For example a regressive tax can be unfair towards lower income
groups because it will account for a larger proportion of their income than richer
individuals.
Spare capacity – The effectiveness of a change in an economic factor may depend on
how much spare capacity there is in the economy. For example, the extent to which
inflation will occur depends on the amount of spare capacity in the economy.
Evaluative quotes – You will have found evaluative quotes for each para. Once you
have quoted the extract, explain how the quote influences the significance of your
argument.
