Unit 3 Macro economic measurement and inflation

Recommended Prior Knowledge Understanding of micro/ macro distinction

Context The unit introduces the measurement of macro economic variables and sets up the first elements of international economic aspects
Outline The ways employment/unemployment and productivity are measured are examined and the structure of the balance of payments is set out. The
construction of a price index to measure inflation is explained before the causes and consequences of inflation itself are considered.
5a Candidates should:
understand the idea of the labour force
be familiar with the format of employment
statistics and their recent patterns and
trends
know how unemployment is measured and
how it has behaved
understand the meaning and measurement
of productivity
analyse recent trends in employment and
unemployment
compare trends between economies
contrast different methods of measuring
unemployment
make international comparisons of
productivity and comparisons over time
Bamford Chap 5
Anderton Unit s 29 72, 97
Anderton* Unit 7
Economics 16-19 Unit 10
www.bized.ac.uk learning materials economics
topic 9 Unemployment and inflation
www.statistics.gov.uk employment and
productivity data
4f Candidates should:
distinguish between exports and imports,
goods and services
distinguish between trade and capital flows
understand the structure of the balance of
payments account
analyse a balance of payments account
represent exports and imports in supply and
demand diagrams
classify different trade and capital
transactions
assemble balance of payments table from
random items
examine recent balance of payments
accounts
compare international positions
produce supply and demand diagrams for
national and international economy
Bamford Chap 4
Anderton Unit 30
Anderton* Unit 12
Economics 16-19 Unit 8
www.bized.ac.uk learning materials economics
topic 11 International economics + virtual
developing country trade field trip
www.imf.org balance of payments data
8708/2 O/N 2001, 9074/2 J 1999, 9074/2 N
1998, 9074/2 J 1997
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5b Candidates should:
understand the idea of a general price level
construct a weighed price index and use it to
measure price changes
be aware of the problems in constructing,
maintaining and interpreting a price index
interpret the meaning of changes in price
data
examine trends in inflation
construct student price index
calculate changes over time
contrast changes in weights over time
analyse the differences between alternative
price indices
Bamford Chap 5
Anderton Unit 28
Anderton* Unit 9
Economics 16-19 Unit 11
www.statistics.gov.uk inflation data
8708/2 O/N 2001, 9074/2 N 1998
6a Candidates should:
define inflation
understand the terms describing aspects of
inflation
analyse the causes and consequences of
inflation
case study of hyper inflation e.g. Germany
1923
contrast past instances of cost push,
demand pull and monetary inflation
compare effects of inflation from different
viewpoints e.g. borrowers, lenders and
government, taxpayers
examine links between inflation and
international competitiveness
Bamford Chap 6
Anderton Unit 89
Anderton* Unit 9
Economics 16-19 Unit 11
www.bized.ac.uk learning materials economics
topic 9 Unemployment and inflation + virtual
developing country copper field trip
www.bankofengland.co.uk inflation report
9074/2 N 1998