What students need to learn:
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Content
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Students should be able to:
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Additional Guidance Notes
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Equilibrium level of output
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Understand the concept of equilibrium real national output.
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The ability to apply the AD/AS model to real-world situations will be
expected.
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The multiplier
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Explain the size of the multiplier, using the concept of the marginal
propensity to consume; apply the multiplier to shifts in AD.
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Students should be able to explain the impact on the economy of the
multiplier.
Evaluation points include the difficulty of measuring it; the time it
takes to come into full effect and size of leakages.
Calculations using the multiplier formula will not be required.
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