← Economics syllabus

EnglandEconomics

The national and international economy

16 dot points across 16 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What determines the total demand for goods and services in an economy?

The components of aggregate demand, why the AD curve slopes downwards, the determinants of consumption, investment, government spending and net trade, and the multiplier.
An answer to AQA A-Level Economics 4.2.3, covering the components of aggregate demand, why the AD curve slopes downwards, the determinants of consumption, investment, government spending and net trade, and the multiplier effect.
9 min answer →

What determines the total output an economy can supply, in the short run and the long run?

Short-run and long-run aggregate supply, the determinants of each, and the difference between the Keynesian and classical views of the long-run AS curve.
An answer to AQA A-Level Economics 4.2.3, covering short-run and long-run aggregate supply, the determinants of each, and the difference between the Keynesian and classical views of the long-run AS curve.
8 min answer →

How do we record a country's transactions with the rest of the world?

The structure of the balance of payments, the current account and its components, the causes and consequences of current account deficits and surpluses, and policies to correct them.
An answer to AQA A-Level Economics 4.2.6, covering the structure of the balance of payments, the current account and its components, the causes and consequences of current account deficits and surpluses, and policies to correct an imbalance.
8 min answer →

What is the difference between growth and development, and how can poorer countries develop?

The difference between economic growth and economic development, measures of development, the barriers to development, and the strategies used to promote it.
An answer to AQA A-Level Economics 4.2.8, covering the difference between economic growth and economic development, measures of development such as the HDI, the barriers to development, and the strategies used to promote it.
8 min answer →

What causes an economy to grow, and why does growth come in cycles?

Actual and potential growth, the causes of growth, the phases of the economic cycle, output gaps, and the costs and benefits of economic growth.
An answer to AQA A-Level Economics 4.2.4, covering actual and potential growth, the causes of growth, the phases of the economic cycle, positive and negative output gaps, and the costs and benefits of economic growth.
8 min answer →

How is unemployment measured, what causes it, and why does it matter?

The measurement of unemployment, the types and causes of unemployment, the consequences of unemployment, and the significance of changes in employment and the labour force.
An answer to AQA A-Level Economics 4.2.5, covering the measurement of unemployment, the types and causes of unemployment, the consequences of unemployment, and the significance of changes in employment and the labour force.
8 min answer →

How are the price level and real output determined for the whole economy?

Macroeconomic equilibrium where AD equals AS, the effects of shifts in AD and AS, and the difference between the Keynesian and classical analysis of equilibrium.
An answer to AQA A-Level Economics 4.2.3, covering macroeconomic equilibrium where AD equals AS, the effects of shifts in aggregate demand and aggregate supply on output and the price level, and the Keynesian and classical analyses.
8 min answer →

What determines the value of a currency, and how does it affect the economy?

Exchange rate systems, the determination of floating exchange rates, the causes and effects of appreciation and depreciation, and the Marshall-Lerner condition and the J-curve.
An answer to AQA A-Level Economics 4.2.8, covering exchange rate systems, the determination of floating exchange rates, the causes and effects of appreciation and depreciation, and the Marshall-Lerner condition and the J-curve.
9 min answer →

How does government taxation and spending influence the economy?

Fiscal policy and the government budget, the use of taxation and government spending to influence AD and AS, the budget balance and national debt, and the limitations of fiscal policy.
An answer to AQA A-Level Economics 4.2.7, covering fiscal policy and the government budget, the use of taxation and spending to influence aggregate demand and supply, the budget balance and national debt, and the limitations of fiscal policy.
9 min answer →

What is globalisation, and who gains and loses from it?

The meaning and causes of globalisation, the role of multinational corporations, and the costs and benefits of globalisation for countries, firms and consumers.
An answer to AQA A-Level Economics 4.2.8, covering the meaning and causes of globalisation, the role of multinational corporations, and the costs and benefits of globalisation for countries, firms and consumers.
8 min answer →

What causes prices to rise or fall, and why does it matter?

The measurement of inflation, demand-pull and cost-push causes, the consequences of inflation and deflation, and the role of expectations.
An answer to AQA A-Level Economics 4.2.5, covering the measurement of inflation using the CPI, demand-pull and cost-push causes, the consequences of inflation and deflation, and the role of expectations.
9 min answer →

Why do countries trade, and should trade be free or protected?

Absolute and comparative advantage and the gains from trade, the patterns of trade, the arguments for and against protectionism, and the role of trading blocs and the WTO.
An answer to AQA A-Level Economics 4.2.8, covering absolute and comparative advantage and the gains from trade, the arguments for and against protectionism, the methods of protection, and the role of trading blocs and the WTO.
9 min answer →

How do economists measure how well an economy is performing?

The main macroeconomic objectives, the use of GDP and real and nominal values, index numbers, and other indicators of living standards and well-being.
An answer to AQA A-Level Economics 4.2.1, covering the main macroeconomic objectives, the use of GDP and real versus nominal values, index numbers, and other indicators of living standards and economic well-being.
8 min answer →

How does a central bank use interest rates and the money supply to manage the economy?

Monetary policy, the role of the central bank, the use of interest rates and quantitative easing, the transmission mechanism, and the limitations of monetary policy.
An answer to AQA A-Level Economics 4.2.7, covering monetary policy and the role of the central bank, the use of interest rates and quantitative easing, the monetary transmission mechanism, and the limitations of monetary policy.
9 min answer →

How does income flow around an economy, and what makes it grow or shrink?

The circular flow of income, injections and withdrawals, the distinction between income, expenditure and output, and the concept of equilibrium national income.
An answer to AQA A-Level Economics 4.2.2, covering the circular flow of income, injections and withdrawals, the equivalence of income, expenditure and output, and how equilibrium national income is determined.
7 min answer →

How can government raise the productive capacity of the economy?

Supply-side policies, the distinction between market-based and interventionist measures, their effects on AS and the macroeconomic objectives, and their limitations.
An answer to AQA A-Level Economics 4.2.7, covering supply-side policies, the distinction between market-based and interventionist measures, their effects on aggregate supply and the macroeconomic objectives, and their limitations.
8 min answer →