2.3.6 - Macroeconomic objectives and policies

Economic growth. objectives.

Use a - economic growth. objectives to connect the rule to the data and decision in the question.

This matters because a - economic growth. objectives determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - economic growth. objectives to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Economic growth. objectives is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Low and stable rate of inflation.

Use b - low and stable rate of inflation to connect the rule to the data and decision in the question.

This matters because b - low and stable rate of inflation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - low and stable rate of inflation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Low and stable rate of inflation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Low unemployment.

Use c - low unemployment to connect the rule to the data and decision in the question.

This matters because c - low unemployment determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - low unemployment to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Low unemployment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Balance of payments equilibrium on current account.

Use d - balance of payments equilibrium on current account to connect the rule to the data and decision in the question.

This matters because d - balance of payments equilibrium on current account determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - balance of payments equilibrium on current account to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Balance of payments equilibrium on current account is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Balanced government budget.

Use e - balanced government budget to connect the rule to the data and decision in the question.

This matters because e - balanced government budget determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - balanced government budget to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Balanced government budget is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Greater income equality.

Use f - greater income equality to connect the rule to the data and decision in the question.

This matters because f - greater income equality determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - greater income equality to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Greater income equality is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Inflation and unemployment, including the short-run Phillips between curve. macroeconomic.

Use a - inflation and unemployment, including the short-run phillips between curve. to connect the rule to the data and decision in the question.

This matters because a - inflation and unemployment, including the short-run phillips between curve. determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - inflation and unemployment, including the short-run phillips between curve. to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Inflation and unemployment, including the short-run Phillips between curve. is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Economic growth and protection of the environment. objectives.

Use b - economic growth and protection of the environment. objectives to connect the rule to the data and decision in the question.

This matters because b - economic growth and protection of the environment. objectives determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - economic growth and protection of the environment. objectives to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Economic growth and protection of the environment. objectives is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Inflation and equilibrium on the current account of the balance of payments.

Use c - inflation and equilibrium on the current account of the balance of payments to connect the rule to the data and decision in the question.

This matters because c - inflation and equilibrium on the current account of the balance of payments determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - inflation and equilibrium on the current account of the balance of payments to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Inflation and equilibrium on the current account of the balance of payments is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Economic growth and income equality.

Use d - economic growth and income equality to connect the rule to the data and decision in the question.

This matters because d - economic growth and income equality determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - economic growth and income equality to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Economic growth and income equality is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Supply-side policies designed to increase productivity, supply-side competition and incentives. policies.

Use a - supply-side policies designed to increase productivity, supply-side competition and to connect the rule to the data and decision in the question.

This matters because a - supply-side policies designed to increase productivity, supply-side competition and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - supply-side policies designed to increase productivity, supply-side competition and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Supply-side policies designed to increase productivity, supply-side competition and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Free market policies:; deregulation of product and labour markets; privatisation; reduction in taxation; changing the levels of welfare payments; cutting the costs of bureaucracy for firms.

Use b - free market policies: • deregulation of product and labour markets • privatisation • to connect the rule to the data and decision in the question.

This matters because b - free market policies: • deregulation of product and labour markets • privatisation • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - free market policies: • deregulation of product and labour markets • privatisation • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Free market policies: • deregulation of product and labour markets • privatisation • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Interventionist policies:; investment in education, training and skills; incentives to encourage investment: tax incentive or subsidies; infrastructure investment; finance for business start-ups; regional policy.

Use c - interventionist policies: • investment in education, training and skills • incentives to connect the rule to the data and decision in the question.

This matters because c - interventionist policies: • investment in education, training and skills • incentives determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - interventionist policies: • investment in education, training and skills • incentives to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Interventionist policies: • investment in education, training and skills • incentives is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Strengths and weaknesses of different supply-side policies.

Use d - strengths and weaknesses of different supply-side policies to connect the rule to the data and decision in the question.

This matters because d - strengths and weaknesses of different supply-side policies determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - strengths and weaknesses of different supply-side policies to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Strengths and weaknesses of different supply-side policies is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Demand-side policies: demand-side; the distinction between fiscal and monetary policy policies; the distinction between reflationary and deflationary policies.

Use a - demand-side policies: demand-side • the distinction between fiscal and monetary policy to connect the rule to the data and decision in the question.

This matters because a - demand-side policies: demand-side • the distinction between fiscal and monetary policy determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - demand-side policies: demand-side • the distinction between fiscal and monetary policy to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Demand-side policies: demand-side • the distinction between fiscal and monetary policy is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Fiscal policy instruments:; government spending and taxation.

Use b - fiscal policy instruments: • government spending and taxation to connect the rule to the data and decision in the question.

This matters because b - fiscal policy instruments: • government spending and taxation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - fiscal policy instruments: • government spending and taxation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Fiscal policy instruments: • government spending and taxation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Monetary policy instruments:; interest rates; asset purchases to increase money supply (quantitative easing); changes in lending criteria; reserve asset (liquidity) requirements.

Use c - monetary policy instruments: • interest rates • asset purchases to increase money to connect the rule to the data and decision in the question.

This matters because c - monetary policy instruments: • interest rates • asset purchases to increase money determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - monetary policy instruments: • interest rates • asset purchases to increase money to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Monetary policy instruments: • interest rates • asset purchases to increase money is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of central banks in the conduct of monetary policy:; implementation of monetary policy; achieving an inflation target; as banker to the government; as banker to the banks - lender of last resort.

Use d - role of central banks in the conduct of monetary policy: • implementation of monetary to connect the rule to the data and decision in the question.

This matters because d - role of central banks in the conduct of monetary policy: • implementation of monetary determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - role of central banks in the conduct of monetary policy: • implementation of monetary to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - role of central banks in the conduct of monetary policy: • implementation of monetary is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Evaluate the strengths and weaknesses of different demand-side policies.

Use e - evaluating demand-side policies to connect the rule to the data and decision in the question.

This matters because e - evaluating demand-side policies determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - evaluating demand-side policies to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Evaluating demand-side policies is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.