Edexcel A-Level Economics AS 2.3.2 2d Causes and Effects of Changes in the Savings Ratio Topic Practice

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Pearson Edexcel IAL Economics

Unit 1: Markets in Action

1.3.1 - Introductory concepts

1.3.2 - Consumer behaviour and demand

1.3.4 - Price determination

1.3.5 - Market failure

1.3.6 - Government intervention in markets

Unit 2: Macroeconomic Performance and Policy

2.3.1 - Measures of economic performance

2.3.2 - Aggregate demand (AD)

2.3.2.1a - concept of AD. characteristics

2.3.2.1b - Components of aggregate demand: of AD • C + I + G + (X-M) = • the AD curve

2.3.2.1c - distinction between a movement along, and a shift of, the AD curve

2.3.2.2a - Influences on consumption: • disposable income • interest rates • consumer confidence •

2.3.2.2b - relationship between savings and consumption

2.3.2.2c - definition of the 'savings ratio'

2.3.2.2d - Causes and effects of changes in the savings ratio

2.3.2.3a - distinction between gross investment and net investment

2.3.2.3b - Influences on investment: • the rate of economic growth • interest rates • business

2.3.2.3c - Government policy to promote investment: • tax relief • subsidies • reductions on the

2.3.2.4a - Influences on government expenditure: expenditure (G) • fiscal policy • the level of

2.3.2.5a - impact on the net trade balance of changes in: (X-M) • real income • the exchange rate

2.3.3 - Aggregate supply (AS)

2.3.4 - National income

2.3.5 - Economic growth

2.3.6 - Macroeconomic objectives and policies

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