Deflation

Deflation

Although governments have the objective of low inflation, it doesn’t necessarily follow that if inflation is bad then the opposite, deflation, is good.  We have already looked at inflation and seen that it is a rise in the average level of prices in an economy over time; but we need to be careful to distinguish …

Unemployment

Unemployment

Here is the presentation we used in class about Unemployment, including problems, measurement and types.  Don’t forget you also need the relevant diagrams.

Aggregate Supply

Aggregate Supply

In the Macroeconomics section of the course the main model we are interested in is the Aggregate Demand (AD) and Aggregate Supply (AS) model.  It is important that we understand not just what AS is and how to draw the curve, but what causes it to shift.  As with Microeconomics we need to distinguish between …

Aggregate demand

Aggregate demand

In the Macroeconomics section of the course the main model we are interested in is the Aggregate Demand (AD) and Aggregate Supply (AS) model.  It is important that we understand not just what AD is and how to draw the curve, but what causes it to shift.  As with Microeconomics we need to distinguish between …

Incidence of taxation

Incidence of taxation

One of the forms of government intervention that we look at while studying the microeconomics unit, is the use of taxation.  In particular,we are interested in the effect of indirect taxation and how the tax is spread between the consumer and producers.  This is known as the incidence of taxation.  Here is the presentation we …

Deflation

Deflation

As well as studying inflation, it is important that we also study the reverse, i.e. deflation.  It is important that we know about the causes and consequences of deflation so that we are able to evaluate which is worse inflation or deflation.  Although some may think that because inflation is bad it must follow that …

Measuring national income

Measuring national income

In the first part of the macroeconomics section of the syllabus we looking at how we can measure national income and the circular flow of income. We have looked at the circular flow of income as a model to understand how we can measure the level or flow of income in an economy.

The Debt Crisis

The Debt Crisis

One of the major issues facing the developing world is the debt crisis.  It was an issue that was brought to the attention of people during the Jubliee 2000 debt campaign and again during the 2005 Make Poverty History campaign.  It still remains a major problem facing countries in teh developing world and an area …

Elasticity

Elasticity

One area of Microeconomics that we refer to throughout the course is the concept of elasticity.  It is important to understand the overall concept of elasticity being how responsive the quantity, either demanded or supplied, is to a change in something else; this can be the price of the good or one of the non-rice …

Economic growth

Economic growth

Economic growth is one of the areas we study in relation to government macroeconomic objectives.  It is important to be able to distinguish between both actual and potential economic growth; not only through definitions but also with diagrams.  It it possible to show the difference first using a PPC  diagram, with a movement of the …