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WalesEconomics

Evaluating Economic Models and Policies (A2 Unit 4)

9 dot points across 9 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do the short-run and long-run views of aggregate supply explain the trade-off between inflation and unemployment?

Short-run and long-run aggregate supply, the Keynesian and Neo-Classical views, and the short-run and long-run Phillips Curve.
A focused answer to the WJEC A-Level Economics topic of aggregate supply and the Phillips Curve, covering short-run and long-run aggregate supply, the Keynesian and Neo-Classical views, and the short-run and long-run Phillips Curve and the role of expectations, with UK examples.
13 min answer →

What is the balance of payments, what causes a current account imbalance, and how can it be corrected?

The structure and measurement of the balance of payments, the causes of current account imbalances, and policies to correct them.
A focused answer to the WJEC A-Level Economics topic of the balance of payments, covering the current and capital and financial accounts, the causes of a current account deficit or surplus, the consequences of imbalances, and expenditure-switching and expenditure-reducing policies to correct them, with UK examples.
12 min answer →

How is development measured, what holds poorer countries back, and what strategies can promote development?

The measurement of development, the barriers to development, and development strategies including aid, foreign direct investment and trade liberalisation.
A focused answer to the WJEC A-Level Economics topic of economic development, covering measures of development including the HDI, the barriers facing developing economies, and development strategies such as aid, foreign direct investment, trade and market liberalisation, with examples.
13 min answer →

What causes economic growth, and is growth always desirable and sustainable?

Actual and potential growth, output gaps, the trade cycle, the causes and effects of growth, and its sustainability.
A focused answer to the WJEC A-Level Economics topic of economic growth, covering actual and potential growth, output gaps, the trade cycle, the demand-side and supply-side causes of growth, its costs and benefits, and sustainability, with UK examples.
13 min answer →

How does fiscal policy work, and how serious are budget deficits and public sector debt?

Fiscal policy, the budget deficit and public sector debt, the distinction between structural and cyclical deficits, and the policy trade-offs.
A focused answer to the WJEC A-Level Economics topic of fiscal policy and public debt, covering the budget deficit and national debt, the structural versus cyclical deficit, automatic stabilisers, crowding out and the trade-offs of using fiscal policy and reducing debt, with UK examples.
13 min answer →

How do trading blocs, monetary union, the WTO and the terms of trade shape the global economy?

Trading blocs and economic integration, the European Union and monetary union, the World Trade Organisation, the terms of trade, and Welsh and UK trade links.
A focused answer to the WJEC A-Level Economics topic of global economics, covering trading blocs and the stages of integration, the European Union and economic and monetary union, the World Trade Organisation, the terms of trade, and Welsh and UK trade links, with worked analysis.
13 min answer →

What causes inflation and deflation, how are they measured, and why do they matter?

The measurement, causes (demand-pull and cost-push), costs and control of inflation, and the causes and dangers of deflation.
A focused answer to the WJEC A-Level Economics topic of inflation and deflation, covering measurement by the CPI, demand-pull and cost-push causes, the costs of inflation, the causes and dangers of deflation, and the policies used to control them, with UK examples.
13 min answer →

How does monetary policy work, and how do governments manage financial stability and crises?

Monetary policy and the transmission mechanism, quantitative easing, financial stability, asset bubbles and the regulation of the financial sector.
A focused answer to the WJEC A-Level Economics topic of monetary policy and financial stability, covering interest rates and the transmission mechanism, quantitative easing, asset bubbles, market failure in the financial sector and its regulation, with UK examples.
13 min answer →

What types of unemployment exist, what causes them, and how can they be reduced?

The types, causes, costs and measurement of unemployment, and demand-side and supply-side policies to reduce it.
A focused answer to the WJEC A-Level Economics topic of unemployment, covering its measurement, the types and causes (cyclical, structural, frictional, real-wage and seasonal), the economic and social costs, and demand-side and supply-side policies to reduce it, with UK examples.
12 min answer →