Worksheet: Objectives of Government Macroeconomic Policy
Aggregate demand curve Aggregate supply - Elasticity of aggregate supply Equilibrium of aggregate demand and supply Consumption and savings - Consumption and savings function - Trends in the saving ratios - Consumer confidence - Wealth and consumer demand - Friedman's permanent income hypothesis Investment - Gross and net investment - Why do firms invest? - UK Investment In An International Context - The Marginal Efficiency Of Investment - The Keynesian Theory Of Investment - The accelerator - Recent Trends In The Growth Of Consumption And Investment Spending - Research and development spending - Capital base - Direct investment into the UK - Inward Investment And The Regional Economic Problem Government spending - Government borrowing - National debt Exports and Imports Objectives of government macroeconomic policy Inflation and its measures and links - The main causes of inflation - Inflationary gaps - Costs and effect of inflation - Unit labour costs and inflation - Monetary inflation - Policies to control inflation - Inflation targets - Deflation - Inflation figures (Excel spreadsheet) Unemployment - Measuring unemployment - Economic and social costs of unemployment - The main causes of unemployment - Policies to reduce unemployment - Changing patterns of unemployment - Full employment - Natural rate of unemployment - The NAIRU - Job vacancies - Long term unemployment - New Deal Economic growth and measurement and links - Benefits and costs of growth - The economic cycle - Theories of growth - Economic resources and long run growth - Government policies - Growth and jobs - USA a model to follow - The structure of output in an economy Balance of payments - The current account - The UK's current account - The capital account - The balance of payments must balance - Can a country safely ignore a persistent current account deficit? Remedies for a balance of payments disequilibrium. Conflicts Between Macro Economic Objectives Demand management or supply side?