ECONOMICS 1B ECS1601 Semester 1 Department of Economics Revision week 4 Learning units 9, 10 and 11

Transcription

1 ECONOMICS 1B ECS1601 Semester 1 Department of Economics Revision week 4 Learning units 9, 10 and 11

2 Contents Page Learning unit 9 Inflation... 3 Learning unit 10 Unemployment... 8 Learning unit 11 Economic growth and business cycles... 11

3 Inflation LEARNING UNIT OUTCOMES [After you have worked through this learning unit, you should be able to] define inflation _ define the consumer price index (CPI) _ use CPI data to calculate inflation rates define the production price index (PPI) _ discuss the differences between the CPI and PPI

4 define the implicit GDP deflator compare the different measures of inflation explain why policy makers regard inflation as a problem explain the difference between demand-pull and cost-push inflation using diagrams

5 explain the conflict approach to inflation

6 CHECKLIST Well Satisfactory Must redo Need help Concepts define inflation describe the CPI, PPI and the implicit GDP deflator differentiate between the CPI, PPI and the implicit GDP deflator define demand-pull inflation define cost-push inflation Explanations differentiate between nominal and real values explain why policy makers regard inflation as a problem distinguish between the main types of costs of inflation describe what measures can be used to get rid of demandpull inflation explain what measures can be used to get rid of cost-push inflation explain the conflict approach to inflation Diagrams (i) show on a diagram (ii) explain with or without the aid of a diagram the difference between demand-pull and cost-push inflation the impact of measures taken to get rid of demand-pull and cost-push inflation Calculations calculate - the inflation rate

7 7 Well Satisfactory Must redo Need help distinguish between fiscal and monetary policy discuss the four lags associated with fiscal and monetary policy Diagrams (i) show on a diagram (ii) explain with or without the aid of a diagram the impact of key changes on the AD curve table 19-1 the impact of key changes on the AS curve table 19-2 Contractionary and expansionary fiscal/monetary policy figure 19-4 changes in aggregate supply figures 19-5 and 19-6 the transmission mechanism figure 19-7 the policy dilemma in an open economy figure NOTES

8 Unemployment 8 LEARNING UNIT OUTCOMES [After you have worked through this learning unit, you should be able to] define the rate of unemployment identify the costs of unemployment distinguish between the different types of unemployment suggest policies to tackle the unemployment problem

9 9 illustrate and explain the Phillips curve CHECKLIST Well Satisfactory Must redo Need help Concepts define the rate of unemployment identify the costs of unemployment Explanations distinguish between the different types of unemployment suggest policies to tackle the unemployment problem Diagrams

10 10 Well Satisfactory Must redo Need help Concepts define the rate of unemployment identify the costs of unemployment Explanations distinguish between the different types of unemployment suggest policies to tackle the unemployment problem Diagrams NOTES

11 11 Economic growth and business [After you have worked through this learning unit, you should be able to] LEARNING UNIT define economic growth _ explain how economic growth is measured define the business cycle identify sources of economic growth

12 12 Well Satisfactory Must redo Need help Concepts define economic growth list the problems associated with the use of GDP define the business cycle name the elements of a business cycle identify sources of economic growth from the supply side identify sources of economic growth from the demand side Explanations Well Satisfactory Must redo Need help explain how economic growth is measured explain the importance of using real GDP per capita when measuring economic growth Diagrams (i) show on a diagram (ii) explain with or without the aid of a diagram: the business cycle see the figure in the study guide NOTES