F582 - The National and International Economy

F582 - The National and International Economy

1. AD/AS and Their Interaction

   • Components of Aggregate Demand (AD)
     • Net Income (X - M)
     • Investment Expenditure (I)
     • Government Expenditure (G)
     • Consumer Expenditure (C)
     • AD = C + G + I + (X - M)
   • Factors That Influence Aggregate Supply (AS)
     • Factors of Production
       • Land
         • Rent
       • Labour
         • Wages
       • Capital
         • Interest
       • Enterprise
         • Profit
   • Macroeconomic Equilibrium
     • Reasons for changes
     • Effects of change
       • Inflation
       • GDP
       • Economic Growth
       • Unemloyment
       • Balance of Payments
     • The Multiplier Process
       • Circular Flow of Income
         • Four-sector Model
     • The Business Cycle
       • Slump/ Boom
       • Recession/ Recovery

2. Economic Indicators

   • Key Indicators
     • GDP
     • Economic Growth
     • Inflation
     • Unemployment
     • Balance of Payments
     • Methods of Measuring
   • Income Redistribution
   • Government Policy Objectives
     • Four Key Objectives
       • Low and stable inflation
       • Low unemployment
       • Positive economic growth
       • Balance of Payments equilibrium
     • Two Minor Objectives
       • A fair income distribution
       • Economic stability
   • Conflicts in Macroeconomic Policies
     • Causes
     • Consequences

3. Macroeconomic Policy and the International Economy

   • Fiscal Policy
   • Monetary Policy
   • Supply-side policy
   • Causes and consequences
     • Inflation
     • Unemployment
     • Economic Growth
     • Current account surpluses and deficit
   • Effects and Effectiveness on Four Key Objectives
     • Fiscal
     • Monetary
     • Supply-side
   • Conflicts between policy objectives
     • Reasons for
     • Consequences
   • Methods of Protectionism
   • International Trade
     • Disadvantages
     • Advantages