Candidates must be able to demonstrate apt knowledge of the following topics in government & the macro-economy.
Topic | Candidates should be able to: |
The role of government | • the role of government |
The macroeconomic aims of government | • the macroeconomic aims of government • possible conflicts between macroeconomic aims |
Fiscal policy | • definition of the budget • reasons for government spending • reasons for taxation • classification of taxes • principles of taxation • impact of taxation • definition of fiscal policy • fiscal policy measures • effects of fiscal policy on government macroeconomic aims |
Monetary policy | • definition of money supply and monetary policy • monetary policy measures • effects of monetary policy on government macroeconomic aims |
Supply-side policy | • definition of supply-side policy • supply-side policy measures • effects of supplyside policy measures on government macroeconomic aims |
Economic growth | • definition of economic growth • measurement of economic growth • causes and consequences of recession • causes of economic growth • consequences of economic growth • policies to promote economic growth |
Employment and Unemployment | • definition of employment, unemployment and full employment • changing patterns and level of employment • measurement of unemployment • causes/types of unemployment • consequences of unemployment • policies to reduce unemployment |
Inflation and Deflation | • definition of inflation and deflation • measurement of inflation and deflation • causes of inflation and deflation • consequences of inflation and deflation • policies to control inflation and deflation |