Unit 2: Macroeconomic Performance and Policy

The rate of change of real Gross Domestic Product (GDP) as a measure of economic growth and living standards.

Use a - rate of change of real gross domestic product (gdp) as a measure of economic growth and to connect the rule to the data and decision in the question.

This matters because a - rate of change of real gross domestic product (gdp) as a measure of economic growth and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - rate of change of real gross domestic product (gdp) as a measure of economic growth and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - rate of change of real Gross Domestic Product (GDP) as a measure of economic growth and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Gross National Income (GNI) as an alternative measure of national income.

Use b - gross national income (gni) as an alternative measure of national income to connect the rule to the data and decision in the question.

This matters because b - gross national income (gni) as an alternative measure of national income determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - gross national income (gni) as an alternative measure of national income to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Gross National Income (GNI) as an alternative measure of national income is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between the following measures of GDP/GNI:; real and nominal; total and per capita; value and volume.

Use c - distinction between the following measures of gdp/gni: • real and nominal • total and to connect the rule to the data and decision in the question.

This matters because c - distinction between the following measures of gdp/gni: • real and nominal • total and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - distinction between the following measures of gdp/gni: • real and nominal • total and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - distinction between the following measures of GDP/GNI: • real and nominal • total and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Comparison of GDP/GNI rates of growth between countries and over time.

Use d - comparison of gdp/gni rates of growth between countries and over time to connect the rule to the data and decision in the question.

This matters because d - comparison of gdp/gni rates of growth between countries and over time determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - comparison of gdp/gni rates of growth between countries and over time to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Comparison of GDP/GNI rates of growth between countries and over time is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of Purchasing Power Parities (PPPs) in making international comparisons of real GDP/GNI.

Use e - concept of purchasing power parities (ppps) in making international comparisons of real to connect the rule to the data and decision in the question.

This matters because e - concept of purchasing power parities (ppps) in making international comparisons of real determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - concept of purchasing power parities (ppps) in making international comparisons of real to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - concept of Purchasing Power Parities (PPPs) in making international comparisons of real is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between positive economic growth rates and negative economic growth rates.

Use f - distinction between positive economic growth rates and negative economic growth rates to connect the rule to the data and decision in the question.

This matters because f - distinction between positive economic growth rates and negative economic growth rates determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - distinction between positive economic growth rates and negative economic growth rates to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - distinction between positive economic growth rates and negative economic growth rates is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of 'recession' as two consecutive quarters of negative economic growth.

Use g - concept of 'recession' as two consecutive quarters of negative economic growth to connect the rule to the data and decision in the question.

This matters because g - concept of 'recession' as two consecutive quarters of negative economic growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - concept of 'recession' as two consecutive quarters of negative economic growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - concept of 'recession' as two consecutive quarters of negative economic growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The limitations of using GDP/GNI to compare living standards between countries and over time.

Use h - limitations of using gdp/gni to compare living standards between countries and over time to connect the rule to the data and decision in the question.

This matters because h - limitations of using gdp/gni to compare living standards between countries and over time determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply h - limitations of using gdp/gni to compare living standards between countries and over time to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: h - limitations of using GDP/GNI to compare living standards between countries and over time is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

National happiness and wellbeing:; indicators of national happiness and wellbeing; the relationship between real incomes and subjective happiness.

Use i - national happiness and wellbeing: • indicators of national happiness and wellbeing • to connect the rule to the data and decision in the question.

This matters because i - national happiness and wellbeing: • indicators of national happiness and wellbeing • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply i - national happiness and wellbeing: • indicators of national happiness and wellbeing • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: i - National happiness and wellbeing: • indicators of national happiness and wellbeing • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concepts of inflation, deflation and disinflation.

Use a - concepts of inflation, deflation and disinflation to connect the rule to the data and decision in the question.

This matters because a - concepts of inflation, deflation and disinflation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concepts of inflation, deflation and disinflation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concepts of inflation, deflation and disinflation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculating inflation using a consumer price index (CPI), including role of weighted basket of goods and services.

Use b - calculating inflation using a consumer price index (cpi), including role of weighted to connect the rule to the data and decision in the question.

This matters because b - calculating inflation using a consumer price index (cpi), including role of weighted determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - calculating inflation using a consumer price index (cpi), including role of weighted to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Calculating inflation using a consumer price index (CPI), including role of weighted is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Limitations of the CPI as a measure of the rate of inflation.

Use c - limitations of the cpi as a measure of the rate of inflation to connect the rule to the data and decision in the question.

This matters because c - limitations of the cpi as a measure of the 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 c - limitations of the cpi as a measure of the rate of inflation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Limitations of the CPI as a measure of the rate of inflation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The producer (wholesale) price index as an indicator of future trends in the rate of inflation.

Use d - producer (wholesale) price index as an indicator of future trends in the rate of to connect the rule to the data and decision in the question.

This matters because d - producer (wholesale) price index as an indicator of future trends in the rate of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - producer (wholesale) price index as an indicator of future trends in the rate of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - producer (wholesale) price index as an indicator of future trends in the rate of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of inflation:; demand-pull; cost-push; excessive growth of money supply.

Use e - causes of inflation: • demand-pull • cost-push • excessive growth of money supply to connect the rule to the data and decision in the question.

This matters because e - causes of inflation: • demand-pull • cost-push • excessive growth of money supply determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - causes of inflation: • demand-pull • cost-push • excessive growth of money supply to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Causes of inflation: • demand-pull • cost-push • excessive growth of money supply is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of deflation:; falling aggregate demand (AD); increase in aggregate supply (AS); fall in the money supply.

Use f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply to connect the rule to the data and decision in the question.

This matters because f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Causes of deflation: • falling aggregate demand (AD) • increase in aggregate supply is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Effects of inflation and deflation on: (continued); Consumers; the government; firms; workers; income distribution; investment; competitiveness; the current account of the balance of payments.

Use g - effects of inflation and deflation on: (continued) • consumers • the government • firms to connect the rule to the data and decision in the question.

This matters because g - effects of inflation and deflation on: (continued) • consumers • the government • firms determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - effects of inflation and deflation on: (continued) • consumers • the government • firms to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Effects of inflation and deflation on: (continued) • Consumers • the government • firms is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

How unemployment is measured, using the International Labour unemployment Organization (ILO) definition.

Use a - unemployment is measured, using the international labour unemployment organization to connect the rule to the data and decision in the question.

This matters because a - unemployment is measured, using the international labour unemployment organization determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - unemployment is measured, using the international labour unemployment organization to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - unemployment is measured, using the International Labour unemployment Organization is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The causes of unemployment:; frictional; seasonal; structural; demand deficiency; real wage inflexibility.

Use b - causes of unemployment: • frictional • seasonal • structural • demand deficiency • real to connect the rule to the data and decision in the question.

This matters because b - causes of unemployment: • frictional • seasonal • structural • demand deficiency • real determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes of unemployment: • frictional • seasonal • structural • demand deficiency • real to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - causes of unemployment: • frictional • seasonal • structural • demand deficiency • real is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The effects of unemployment on:; consumers; firms; workers; public finances; resource utilisation and production possibility frontier; society.

Use c - effects of unemployment on: • consumers • firms • workers • public finances • resource to connect the rule to the data and decision in the question.

This matters because c - effects of unemployment on: • consumers • firms • workers • public finances • resource determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - effects of unemployment on: • consumers • firms • workers • public finances • resource to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - effects of unemployment on: • consumers • firms • workers • public finances • resource is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between unemployment and underemployment.

Use d - distinction between unemployment and underemployment to connect the rule to the data and decision in the question.

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

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

Boundary: d - distinction between unemployment and underemployment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of changes in rates of employment, unemployment and economic inactivity.

Use e - significance of changes in rates of employment, unemployment and economic inactivity to connect the rule to the data and decision in the question.

This matters because e - significance of changes in rates of employment, unemployment and economic inactivity determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - significance of changes in rates of employment, unemployment and economic inactivity to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - significance of changes in rates of employment, unemployment and economic inactivity is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of net migration for employment and unemployment.

Use f - significance of net migration for employment and unemployment to connect the rule to the data and decision in the question.

This matters because f - significance of net migration for employment and unemployment determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - significance of net migration for employment and unemployment to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - significance of net migration for employment and unemployment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Components of the balance of payments, with particular payments reference to the current account.

Use a - components of the balance of payments, with particular payments reference to the to connect the rule to the data and decision in the question.

This matters because a - components of the balance of payments, with particular payments reference to the determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - components of the balance of payments, with particular payments reference to the to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Components of the balance of payments, with particular payments reference to the is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between deficits and surpluses in the trade in goods and services balance.

Use b - distinction between deficits and surpluses in the trade in goods and services balance to connect the rule to the data and decision in the question.

This matters because b - distinction between deficits and surpluses in the trade in goods and services balance determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between deficits and surpluses in the trade in goods and services balance to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between deficits and surpluses in the trade in goods and services balance is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between balance of payments deficits and surpluses on the current account.

Use c - distinction between balance of payments deficits and surpluses on the current account to connect the rule to the data and decision in the question.

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

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

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

The concept of AD. characteristics.

Use a - concept of ad. characteristics to connect the rule to the data and decision in the question.

This matters because a - concept of ad. characteristics determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concept of ad. characteristics to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concept of AD. characteristics is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Components of aggregate demand: of AD; C + I + G + (X-M) =; the AD curve.

Use b - components of aggregate demand: of ad • c + i + g + (x-m) = • the ad curve to connect the rule to the data and decision in the question.

This matters because b - components of aggregate demand: of ad • c + i + g + (x-m) = • the ad curve determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - components of aggregate demand: of ad • c + i + g + (x-m) = • the ad curve to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Components of aggregate demand: of AD • C + I + G + (X-M) = • the AD curve is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between a movement along, and a shift of, the AD curve.

Use c - distinction between a movement along, and a shift of, the ad curve to connect the rule to the data and decision in the question.

This matters because c - distinction between a movement along, and a shift of, the ad curve determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - distinction between a movement along, and a shift of, the ad curve to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - distinction between a movement along, and a shift of, the AD curve is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Influences on consumption:; disposable income; interest rates; consumer confidence; level of welfare payments; wealth effects; availability of credit.

Use a - influences on consumption: • disposable income • interest rates • consumer confidence • to connect the rule to the data and decision in the question.

This matters because a - influences on consumption: • disposable income • interest rates • consumer confidence • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - influences on consumption: • disposable income • interest rates • consumer confidence • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Influences on consumption: • disposable income • interest rates • consumer confidence • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The relationship between savings and consumption.

Use b - relationship between savings and consumption to connect the rule to the data and decision in the question.

This matters because b - relationship between savings and consumption determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - relationship between savings and consumption to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - relationship between savings and consumption is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The definition of the 'savings ratio'.

Use c - definition of the 'savings ratio' to connect the rule to the data and decision in the question.

This matters because c - definition of the 'savings ratio' determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - definition of the 'savings ratio' to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - definition of the 'savings ratio' is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes and effects of changes in the savings ratio.

Use d - causes and effects of changes in the savings ratio to connect the rule to the data and decision in the question.

This matters because d - causes and effects of changes in the savings ratio determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - causes and effects of changes in the savings ratio to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Causes and effects of changes in the savings ratio is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between gross investment and net investment.

Use a - distinction between gross investment and net investment to connect the rule to the data and decision in the question.

This matters because a - distinction between gross investment and net investment determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between gross investment and net investment to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between gross investment and net investment is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Influences on investment:; the rate of economic growth; interest rates; business confidence and expectations; availability of credit; tax on company profits.

Use b - influences on investment: • the rate of economic growth • interest rates • business to connect the rule to the data and decision in the question.

This matters because b - influences on investment: • the rate of economic growth • interest rates • business determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - influences on investment: • the rate of economic growth • interest rates • business to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Influences on investment: • the rate of economic growth • interest rates • business is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Government policy to promote investment:; tax relief; subsidies; reductions on the rate of corporation tax.

Use c - government policy to promote investment: • tax relief • subsidies • reductions on the to connect the rule to the data and decision in the question.

This matters because c - government policy to promote investment: • tax relief • subsidies • reductions on the determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - government policy to promote investment: • tax relief • subsidies • reductions on the to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Government policy to promote investment: • tax relief • subsidies • reductions on the is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Influences on government expenditure: expenditure (G); fiscal policy; the level of economic activity; correction of market failures; political priorities.

Use a - influences on government expenditure: expenditure (g) • fiscal policy • the level of to connect the rule to the data and decision in the question.

This matters because a - influences on government expenditure: expenditure (g) • fiscal policy • the level of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - influences on government expenditure: expenditure (g) • fiscal policy • the level of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Influences on government expenditure: expenditure (G) • fiscal policy • the level of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact on the net trade balance of changes in: (X-M); real income; the exchange rate; the state of the global economy; degree of protectionism; non-price factors.

Use a - impact on the net trade balance of changes in: (x-m) • real income • the exchange rate to connect the rule to the data and decision in the question.

This matters because a - impact on the net trade balance of changes in: (x-m) • real income • the exchange rate determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - impact on the net trade balance of changes in: (x-m) • real income • the exchange rate to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - impact on the net trade balance of changes in: (X-M) • real income • the exchange rate is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of AS. characteristics.

Use a - concept of as. characteristics to connect the rule to the data and decision in the question.

This matters because a - concept of as. characteristics determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concept of as. characteristics to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concept of AS. characteristics is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The AS curve. of AS.

Use b - as curve. of as to connect the rule to the data and decision in the question.

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

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

Boundary: b - AS curve. of AS is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between a movement along and a shift of the AS curve.

Use c - distinction between a movement along and a shift of the as curve to connect the rule to the data and decision in the question.

This matters because c - distinction between a movement along and a shift of the as curve determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - distinction between a movement along and a shift of the as curve to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - distinction between a movement along and a shift of the AS curve is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing SRAS. Changes in: (SRAS); costs of raw materials and energy; exchange rates; tax rates.

Use a - factors influencing sras. changes in: (sras) • costs of raw materials and energy • to connect the rule to the data and decision in the question.

This matters because a - factors influencing sras. changes in: (sras) • costs of raw materials and energy • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors influencing sras. changes in: (sras) • costs of raw materials and energy • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors influencing SRAS. Changes in: (SRAS) • costs of raw materials and energy • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Different shapes of AS curve: (LRAS); Keynesian; classical.

Use a - different shapes of as curve: (lras) • keynesian • classical to connect the rule to the data and decision in the question.

This matters because a - different shapes of as curve: (lras) • keynesian • classical determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - different shapes of as curve: (lras) • keynesian • classical to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Different shapes of AS curve: (LRAS) • Keynesian • classical is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing LRAS. Changes in:; the state of technology; productivity; education and skills; government regulations and tax; demography and net migration; competition policy.

Use b - factors influencing lras. changes in: • the state of technology • productivity • to connect the rule to the data and decision in the question.

This matters because b - factors influencing lras. changes in: • the state of technology • productivity • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors influencing lras. changes in: • the state of technology • productivity • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors influencing LRAS. Changes in: • the state of technology • productivity • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The circular flow of income.

Use a - circular flow of income to connect the rule to the data and decision in the question.

This matters because a - circular flow of income determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - circular flow of income to one small, clearly defined case, show the key step or comparison, and explain the result in words.

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

The distinction between income and wealth.

Use b - distinction between income and wealth to connect the rule to the data and decision in the question.

This matters because b - distinction between income and wealth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between income and wealth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between income and wealth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between injections and withdrawals. withdrawals.

Use a - distinction between injections and withdrawals. withdrawals to connect the rule to the data and decision in the question.

This matters because a - distinction between injections and withdrawals. withdrawals determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between injections and withdrawals. withdrawals to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between injections and withdrawals. withdrawals is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Injections:; investment; government expenditure; exports.

Use b - injections: • investment • government expenditure • exports to connect the rule to the data and decision in the question.

This matters because b - injections: • investment • government expenditure • exports determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - injections: • investment • government expenditure • exports to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Injections: • investment • government expenditure • exports is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Withdrawals:; savings; taxation; imports.

Use c - withdrawals: • savings • taxation • imports to connect the rule to the data and decision in the question.

This matters because c - withdrawals: • savings • taxation • imports determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - withdrawals: • savings • taxation • imports to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Withdrawals: • savings • taxation • imports is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of net injections into, and net withdrawals from, the circular flow of income.

Use d - impact of net injections into, and net withdrawals from, the circular flow of income to connect the rule to the data and decision in the question.

This matters because d - impact of net injections into, and net withdrawals from, the circular flow of income determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - impact of net injections into, and net withdrawals from, the circular flow of income to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - impact of net injections into, and net withdrawals from, the circular flow of income is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of equilibrium level of real national output. of real output.

Use a - concept of equilibrium level of real national output. of real output to connect the rule to the data and decision in the question.

This matters because a - concept of equilibrium level of real national output. of real output determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concept of equilibrium level of real national output. of real output to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concept of equilibrium level of real national output. of real output is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of changes in equilibrium real national output, as a result of shifts in AD and/or AS curves.

Use b - causes of changes in equilibrium real national output, as a result of shifts in ad to connect the rule to the data and decision in the question.

This matters because b - causes of changes in equilibrium real national output, as a result of shifts in ad determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes of changes in equilibrium real national output, as a result of shifts in ad to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Causes of changes in equilibrium real national output, as a result of shifts in AD is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The multiplier and multiplier process.

Use a - multiplier and multiplier process to connect the rule to the data and decision in the question.

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

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

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

Marginal propensities and their effects on the multiplier:; the marginal propensity to consume (MPC); the marginal propensity to save (MPS); the marginal propensity to tax (MPT); the marginal propensity to import (MPM).

Use b - marginal propensities and their effects on the multiplier: • the marginal propensity to to connect the rule to the data and decision in the question.

This matters because b - marginal propensities and their effects on the multiplier: • the marginal propensity to determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - marginal propensities and their effects on the multiplier: • the marginal propensity to to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Marginal propensities and their effects on the multiplier: • the marginal propensity to is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculations of the multiplier using the formula 1/(1-MPC) and 1/MPW, where MPW = MPS + MPT + MPM.

Use c - calculations of the multiplier using the formula 1/(1-mpc) and 1/mpw, where mpw = mps + to connect the rule to the data and decision in the question.

This matters because c - calculations of the multiplier using the formula 1/(1-mpc) and 1/mpw, where mpw = mps + determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - calculations of the multiplier using the formula 1/(1-mpc) and 1/mpw, where mpw = mps + to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: use the formula and units given in the question, show the substitution and interpret the result; the calculation alone is not the conclusion.

The significance of the multiplier for shifts in AD and the level of economic activity.

Use d - significance of the multiplier for shifts in ad and the level of economic activity to connect the rule to the data and decision in the question.

This matters because d - significance of the multiplier for shifts in ad and the level of economic activity determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of the multiplier for shifts in ad and the level of economic activity to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of the multiplier for shifts in AD and the level of economic activity is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between actual and potential growth.

Use a - distinction between actual and potential growth to connect the rule to the data and decision in the question.

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

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

Boundary: a - distinction between actual and potential growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Actual growth caused by an increase in the components of AD.

Use b - actual growth caused by an increase in the components of ad to connect the rule to the data and decision in the question.

This matters because b - actual growth caused by an increase in the components of ad determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - actual growth caused by an increase in the components of ad to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Actual growth caused by an increase in the components of AD is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The importance of international trade for export-led growth.

Use c - importance of international trade for export-led growth to connect the rule to the data and decision in the question.

This matters because c - importance of international trade for export-led growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - importance of international trade for export-led growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - importance of international trade for export-led growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of potential growth:; domestic investment and foreign direct investment (FDI); innovation; growth in size of labour force, including net migration; the degree of competition.

Use d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • to connect the rule to the data and decision in the question.

This matters because d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Causes of potential growth: • domestic investment and foreign direct investment (FDI) • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The importance of productivity for the rate of economic growth.

Use e - importance of productivity for the rate of economic growth to connect the rule to the data and decision in the question.

This matters because e - importance of productivity for the rate of economic growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - importance of productivity for the rate of economic growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - importance of productivity for the rate of economic growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible benefits of growth:; higher living standards; lower unemployment; increased profits for firms; higher levels of investment; increased tax revenues; improved public services.

Use a - possible benefits of growth: • higher living standards • lower unemployment • increased to connect the rule to the data and decision in the question.

This matters because a - possible benefits of growth: • higher living standards • lower unemployment • increased determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible benefits of growth: • higher living standards • lower unemployment • increased to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible benefits of growth: • higher living standards • lower unemployment • increased is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible costs of growth:; opportunity costs; environmental costs; balance of trade deficits; increased inequality; inflation.

Use a - possible costs of growth: • opportunity costs • environmental costs • balance of trade to connect the rule to the data and decision in the question.

This matters because a - possible costs of growth: • opportunity costs • environmental costs • balance of trade determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible costs of growth: • opportunity costs • environmental costs • balance of trade to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible costs of growth: • opportunity costs • environmental costs • balance of trade is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The difference between actual growth rate and long-term trends in growth.

Use a - difference between actual growth rate and long-term trends in growth to connect the rule to the data and decision in the question.

This matters because a - difference between actual growth rate and long-term trends in growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - difference between actual growth rate and long-term trends in growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - difference between actual growth rate and long-term trends in growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between positive and negative output gaps.

Use b - distinction between positive and negative output gaps to connect the rule to the data and decision in the question.

This matters because b - distinction between positive and negative output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between positive and negative output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between positive and negative output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Characteristics of positive and negative output gaps.

Use c - characteristics of positive and negative output gaps to connect the rule to the data and decision in the question.

This matters because c - characteristics of positive and negative output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - characteristics of positive and negative output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Characteristics of positive and negative output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Difficulties of measuring output gaps.

Use d - difficulties of measuring output gaps to connect the rule to the data and decision in the question.

This matters because d - difficulties of measuring output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - difficulties of measuring output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Difficulties of measuring output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

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.