Edexcel A-Level Economics AS 2.3.4 3a Concept of Equilibrium Level of Real National Output of Real Output Topic Practice

CourseCourseConceptConcept

Pearson Edexcel IAL Economics

Unit 1: Markets in Action

Unit 2: Macroeconomic Performance and Policy

2.3.1 - Measures of economic performance

2.3.2 - Aggregate demand (AD)

2.3.3 - Aggregate supply (AS)

2.3.4 - National income

2.3.4.1a - circular flow of income

2.3.4.1b - distinction between income and wealth

2.3.4.2a - distinction between injections and withdrawals. withdrawals

2.3.4.2b - Injections: • investment • government expenditure • exports

2.3.4.2c - Withdrawals: • savings • taxation • imports

2.3.4.2d - impact of net injections into, and net withdrawals from, the circular flow of income

2.3.4.3a - concept of equilibrium level of real national output. of real output

2.3.4.3b - Causes of changes in equilibrium real national output, as a result of shifts in AD

2.3.4.4a - multiplier and multiplier process

2.3.4.4b - Marginal propensities and their effects on the multiplier: • the marginal propensity to

2.3.4.4c - Calculations of the multiplier using the formula 1/(1-MPC) and 1/MPW, where MPW = MPS +

2.3.4.4d - significance of the multiplier for shifts in AD and the level of economic activity

2.3.5 - Economic growth

2.3.6 - Macroeconomic objectives and policies

Assessed quantitative skills

A-Level/Edexcel/Economics//AS/Question Bank/Unit 2: Macroeconomic Performance and Policy/2.3.4 - National income/2.3.4.3a - concept of equilibrium level of real national output. of real output

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