This unit provides an introduction to the key measures of economic performance and the main objectives and instruments of economic policy. Students should be able to use a basic aggregate demand/aggregate supply model to understand why demand and/or supply side policies may be seen as appropriate ways of managing an economy; predict the possible impact of such policies and to recognise the assumptions involved; argue for different approaches and identify criteria for success.
Students will be required to do simple calculations involving percentage changes and index numbers and use simple statistical tools to analyse changes in distribution, for example deciles. They will also be required to interpret diagrams and construct simple graphs.
Examination length: 1 hour 30 minutes
One data response question out of a choice of two questions. Worth 50 marks.
Last question of data response will be open ended. Worth 30 marks.
Total for paper: 80 marks