Managing the economy

When we start this unit, it is important to recall the basic economic concepts from the previous chapters as well as lessons from O Level tutorials. In particular, do spend some time revising the following topics:
1. Scarcity
2. Opportunity cost
3. Production Possibilities Frontier
4. Factors of production, specialisation and division of labour
5. Objective and value judgements
6. Demand and related elasticity measures
7. Supply and elasticity
8. Price determination and simple curve shifts

Having revised the above, we can go for the topics of discussion for this particular unit- Managing the economy:

1. Measuring the performance of developed and developing countries

– Measuring Economic Growth.
– Measuring Inflation
– Measuring unemployment
– Balance of Payments
– Human Development Index
– Other measures of development

2. Income and wealth

– Circular flow of income
– Wealth and its relationship to income

3. Aggregate Demand

4. Aggregate Supply

5. Determining the price level and equilibrium level of real output

6. Causes, costs and constraints on economic growth

7. Macroeconomic objectives of governments

8. Demand-side macroeconomic policy instruments

9. Supply-side policies

10. Glossary of Unit 2 : Managing the economy

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