Macroeconomic objectives and indicators - Eduqas A-Level Economics (A520) overview

The macroeconomic-objectives-and-indicators module of Eduqas A-Level Economics (specification A520) introduces the economy as a whole: the main objectives governments pursue and the data used to judge them. This page maps the specification statements and how they are examined.

The statements in this module

Economic growth and the business cycle

The measurement of GDP and growth, real versus nominal and per-capita measures, short-run and long-run growth, the phases of the business cycle and output gaps, and the costs and benefits of growth.

Inflation and deflation

The measurement of inflation using a weighted price index such as the CPI, demand-pull and cost-push causes, the effects of inflation and deflation, and the distinction between inflation, disinflation and deflation.

Unemployment

Its measurement by the claimant count and the Labour Force Survey, the causes (cyclical, structural, frictional and real-wage), and the economic and social costs, including underemployment.

The balance of payments and current account

The structure of the balance of payments, the components of the current account, the causes and consequences of a deficit or surplus, and the link to other objectives.

The distribution of income and wealth

The difference between income and wealth, the causes of inequality, the costs and benefits of inequality, and the policies used to redistribute.

How this module is examined

Eduqas Economics is a two-year linear course with three papers at the end. This content is sampled across all of them: Component 1 uses multiple-choice and short structured questions, Component 2 uses data-response calculations (growth, inflation, the unemployment rate, the current account), and Section B of Component 3 offers a choice of macroeconomics essays marked by levels of response. Higher-mark questions reward accurate use of the indicators and balanced evaluation of trade-offs.

How to study this module

1. Master the quantitative skills. Real versus nominal GDP, index numbers and inflation, the unemployment and participation rates, and the current-account balance all recur in Component 2.
2. Know each indicator's limitations. GDP omits the distribution and the environment; CPI can be unrepresentative; the claimant count understates unemployment.
3. Map the trade-offs between objectives. Growth versus inflation, inflation versus unemployment, and growth versus the current account are the spine of macro evaluation.
4. Use current data. Recent UK inflation, growth, unemployment and current-account figures make application marks easy.

Work through the statements

Each statement has its own focused answer page with worked exam questions and cross-links: economic growth and the business cycle; inflation and deflation; unemployment and the labour market; the balance of payments and current account; and the distribution of income and wealth.

For the official specification

Eduqas publishes the full specification (A520), past papers and mark schemes at eduqas.co.uk. Always revise from the current specification and Eduqas's own past papers, because the multiple-choice format of Component 1 and the levels-of-response mark schemes are board-specific.