Theme 2: The UK economy – performance and policies
Overview:
This theme is one of two in this qualification that focuses on macroeconomics. This theme introduces the key measures of economic performance and the main instruments of economic policy primarily in a UK context.
Content from Theme 2 will be assessed in Paper 2. Students will need to apply their knowledge and understanding to both familiar and unfamiliar contexts in the assessments and demonstrate an awareness of current economic events and policies.
Content:
Students will be introduced to the aggregate demand/aggregate supply model so that they can use it to analyse changes in real output and the price level. They will: examine the use of demand-side policies, supply-side
policies and direct controls as means of improving an economy's performance; recognise the underlying assumptions; predict the likely impact and effectiveness of such policies; and consider these in an historical context.
Students should consider the different approaches that may be used by policymakers to address macroeconomic issues and be able to identify the criteria for success. Students should have knowledge of the UK economy in the
last 10 years.
This theme will provide a coherent coverage of macroeconomic content with students drawing on local and
national contexts, as appropriate.
Students are encouraged to use an enquiring, critical and thoughtful approach to the study of economics and to develop an ability to think as an economist.
To develop their skills, knowledge and understanding in economics, students need to have acquired competence in
quantitative skills that are relevant to and applied in the context of this theme
Overview:
This theme is one of two in this qualification that focuses on macroeconomics. This theme introduces the key measures of economic performance and the main instruments of economic policy primarily in a UK context.
Content from Theme 2 will be assessed in Paper 2. Students will need to apply their knowledge and understanding to both familiar and unfamiliar contexts in the assessments and demonstrate an awareness of current economic events and policies.
Content:
Students will be introduced to the aggregate demand/aggregate supply model so that they can use it to analyse changes in real output and the price level. They will: examine the use of demand-side policies, supply-side
policies and direct controls as means of improving an economy's performance; recognise the underlying assumptions; predict the likely impact and effectiveness of such policies; and consider these in an historical context.
Students should consider the different approaches that may be used by policymakers to address macroeconomic issues and be able to identify the criteria for success. Students should have knowledge of the UK economy in the
last 10 years.
This theme will provide a coherent coverage of macroeconomic content with students drawing on local and
national contexts, as appropriate.
Students are encouraged to use an enquiring, critical and thoughtful approach to the study of economics and to develop an ability to think as an economist.
To develop their skills, knowledge and understanding in economics, students need to have acquired competence in
quantitative skills that are relevant to and applied in the context of this theme