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ScotlandEconomics

National and Global Economic Issues

8 dot points across 8 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do aggregate demand and supply determine national output and the price level, and how does a change ripple through the economy?

The aggregate demand and supply model: the components of aggregate demand, short-run and long-run aggregate supply, macroeconomic equilibrium, and the multiplier and accelerator effects of a change in spending.
An SQA Advanced Higher Economics answer on the aggregate demand and supply model: the components of aggregate demand, the shapes of short-run and long-run aggregate supply, macroeconomic equilibrium, and how the multiplier and accelerator magnify a change in spending through the circular flow.
17 min answer →

How is economic growth measured, what causes the business cycle, and do the benefits of growth outweigh the costs?

Economic growth and the business cycle: measuring real GDP and output gaps, the phases and causes of the cycle, the distinction between actual and potential growth, and the benefits and costs of growth including sustainability.
An SQA Advanced Higher Economics answer on economic growth and the business cycle: measuring growth with real GDP, the difference between actual and potential growth, output gaps, the phases and causes of the business cycle, and a balanced evaluation of the benefits and costs of growth including sustainability.
16 min answer →

How is an exchange rate determined, what records a country's transactions with the rest of the world, and how do they interact?

Exchange rates and the balance of payments: the structure of the balance of payments, floating and fixed exchange rate systems, how a floating rate is determined and what causes appreciation and depreciation, and the effects of a changing exchange rate on the current account.
An SQA Advanced Higher Economics answer on exchange rates and the balance of payments: the structure of the balance of payments, fixed and floating exchange rate systems, how a floating rate is determined and the causes of appreciation and depreciation, and how a changing exchange rate affects the current account, including the Marshall-Lerner condition and the J-curve.
17 min answer →

How do governments and central banks use fiscal and monetary policy to manage the economy, and how effective is each?

Fiscal and monetary policy: government spending, taxation and the budget; the role of the central bank, interest rates and quantitative easing; how each affects aggregate demand; and an evaluation of their effectiveness.
An SQA Advanced Higher Economics answer on demand-side policy: fiscal policy (government spending, taxation, the budget balance and the national debt), monetary policy (the central bank, interest rates and quantitative easing), how each shifts aggregate demand, and a balanced evaluation of their effectiveness and limitations.
18 min answer →

What is globalisation, how is development measured, and what helps or hinders poorer economies in developing?

Globalisation and economic development: the causes and effects of globalisation and the role of multinationals, the measurement of development beyond GDP, the barriers to development, development strategies, and the roles of the IMF, World Bank and aid.
An SQA Advanced Higher Economics answer on globalisation and development: the causes and effects of globalisation and the role of multinational companies, how development is measured beyond GDP (the Human Development Index), the barriers to development, development strategies, and the roles of the IMF, World Bank and international aid.
17 min answer →

How are inflation and unemployment measured, what causes them, and is there a trade-off between the two?

Inflation and unemployment: their measurement, types and causes, their economic costs, and the Phillips curve relationship between them in the short run and long run.
An SQA Advanced Higher Economics answer on inflation and unemployment: how each is measured, the types and causes of inflation (demand-pull and cost-push) and unemployment, their economic costs, and the Phillips curve relationship showing a short-run trade-off but a vertical long-run curve at the natural rate.
17 min answer →

Why do countries trade, what are the gains from trade, and when might protectionism be justified?

International trade: absolute and comparative advantage, the gains from specialisation and trade, the terms of trade, the arguments for and against protectionism and its methods, and the role of trade blocs and the WTO.
An SQA Advanced Higher Economics answer on international trade: absolute and comparative advantage, the gains from specialisation, the terms of trade, the arguments for and against protectionism and its methods (tariffs, quotas, subsidies), and the role of trade blocs and the World Trade Organisation.
17 min answer →

How do supply-side policies raise an economy's capacity, and what economic powers does Scotland hold within the UK?

Supply-side policy and the Scottish economy: market-based and interventionist supply-side measures and their effects on long-run aggregate supply, and the division of economic powers between the Scottish and UK governments under devolution and the fiscal framework.
An SQA Advanced Higher Economics answer on supply-side policy and the Scottish economy: market-based and interventionist supply-side measures and how they shift long-run aggregate supply, plus the division of devolved and reserved economic powers between the Scottish and UK governments and the Scottish fiscal framework.
16 min answer →