that when the economy eventually return to its natural rate/NAIRU it will Look at the role of supply side policies as a way of improving the Phillips do so with a higher level of inflation. curve trade-off (by reducing the NAIRU). Look at the evidence of the post 1992 period. Thus the SRPC may shift either vertically or horizontally. Show that most of the same issues raised by SR/LR Phillips curve analysis Understand that changes on the can also be illustrated by SR/LR AS analysis. supply side (either favourable or adverse) can cause the position of the long run Phillips curve to shift and that economic policy changes can bring such shifts about. 21 Economic Explain the differences between Revisit the difference between actual and potential economic growth, and growth changes in measured gross look at how potential growth can be measured (business/trade cycles), and (revisited) domestic product (GDP) (actual explain the concept of sustainable growth. Revisit PPF analysis. - growth) and potential growth and Actual vs. understand that by ‘economic 22 potential growth’ economists are generally economic referring to an increase in the growth productive capacity of the economy rather than short-term changes in the level of national income. Explain the differences between actual and potential growth the concepts of positive and negative output gaps and the business cycle. Understand what is by the term ‘recession’.
that when the economy eventually return to its natural rate/NAIRU it will do so with a higher level of inflation. Understand that changes on the supply side (either favourable or adverse) can cause the position of the long run Phillips curve to shift and that economic policy changes can bring such shifts about. Look at the role of supply side policies as a way of improving the Phillips curve trade-off (by reducing the NAIRU). Look at the evidence of the post 1992 period. Thus the SRPC may shift either vertically or horizontally. Show that most of the same issues raised by SR/LR Phillips curve analysis can also be illustrated by SR/LR AS analysis. 21 - 22 Economic growth (revisited) Actual vs. potential economic growth Explain the differences between changes in measured gross domestic product (GDP) (actual growth) and potential growth and understand that by ‘economic growth’ economists are generally referring to an increase in the productive capacity of the economy rather than short-term changes in the level of national income. Explain the differences between actual and potential growth the concepts of positive and negative output gaps and the business cycle. Understand what is by the term ‘recession’. Revisit the difference between actual and potential economic growth, and look at how potential growth can be measured (business/trade cycles), and explain the concept of sustainable growth. Revisit PPF analysis.
Eduqas%20Economics%20Course%20Outline%20(from%20September%202015).docx