Macroeconomics: Objectives and Performance

What this unit covers

This page collects material on how an economy is measured and how governments try to steer it. The mind maps work through national income, GDP, economic growth, the circular flow of income, aggregate demand and supply, fiscal policy, monetary policy, inflation and unemployment. Some also look at the balance of payments and the economic cycle.

Where to start

Begin with the big picture. The IB Economics SL: Macroeconomics mind map lays out measuring national income, macroeconomic models, supply-side and demand-side policies, growth, unemployment and inflation in one place. The Economic Growth mind map is a good next step, since it covers output gaps, measuring growth, the circular flow and HDI.

1. Read a broad map such as Aggregate Demand and Supply to see how spending is split into consumption, investment, government and trade.
2. Move to the Fiscal policy maps, which define the term and link it to taxation, government spending and borrowing.
3. Look at Employment and unemployment for key words before you try harder questions.

Using maps and quizzes together

Study a map first, then test yourself. The Injections and Leakages quiz suits the circular flow topic. Quizzes such as Inflation and Monetary Policy match single topics, while Macro Final Exam and Economics Final cover a wider range. When you miss a question, go back to the map on that topic and read the branch again.

Flashcard decks help with definitions and formulas. Try Macroeconomics Key terms or the deck on GDP, income and economic growth. Notes such as the one on the circular flow of income give a written version when you prefer paragraphs to branches.

Who it suits

The resources mention exams including A-level Economics, IB Economics, AP Macroeconomics, IGCSE Economics and GCSE Economics, alongside university course reviews and midterms. Check that the wording matches your own course, since the resources were made by different contributors.

Where it sits

This unit belongs to the Macroeconomics strand of Economics. Choose one topic today, take a quiz on it, and then make a map or deck of your own.