Specification “Discuss”• Discuss how changes in aggregate demand and aggregate supply may affect
output, unemployment and inflation. JUNE 2009• Discuss the costs, benefits and sustainability of economic growth JUNE 2010• Discuss the consequences of: – unemployment – inflation JAN 2012– a deficit or surplus on the current account of the balance of payments• Discuss, using the AD and AS model, the effective of policies meeting macro
objectives for:- Fiscal JUNE 2012, Jan 2011- Monetary JUNE 2013, JUNE 2011, JAN 2010- Supply side JAN 2009• Discuss the reasons for, and consequences of, possible conflicts between policy
objectives
Discuss whether an increase in Government spending will always increase a countries
economic growth rate?
June 2012
Discuss how a reduction in the rate of interest may affect consumer expenditure and
investment.
Jan 2010
Discuss the extent to which an increase in aggregate demand may affect output, unemployment and inflation.
June 2009
Current Account Balance
Samuel Tombs of Capital Economics said he expected inflation to fall even further. "A favourable combination of lower import prices, flat commodity prices and recovering productivity is likely to help CPI inflation fall further, perhaps to about 1% by the end of the year," he said.
As well as the impact of a drop in petrol prices, the ONS said the price of clothing and footwear had also increased at a slower pace than the same period last year, and energy bills also had a downward effect on inflation.
However, the price of furniture and home furnishings rose by more than last year, the ONS said.