Scribd
Upload
8 views

1. Intro to Macroeconomics

The document outlines the structure and content of a course on Macroeconomics and the Global Economy for the International GCSE (9-1) by Pearson Edexcel. It covers key topics such as macroeconomic objectives, government policies, globalization, and international trade, along with the instruments used to achieve macroeconomic goals. The document emphasizes the importance of understanding the relationships between economic variables at an aggregate level.

Uploaded by

sifanheena290
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
8 views

1. Intro to Macroeconomics

The document outlines the structure and content of a course on Macroeconomics and the Global Economy for the International GCSE (9-1) by Pearson Edexcel. It covers key topics such as macroeconomic objectives, government policies, globalization, and international trade, along with the instruments used to achieve macroeconomic goals. The document emphasizes the importance of understanding the relationships between economic variables at an aggregate level.

Uploaded by

sifanheena290
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

Pearson Edexcel

Paper 2: International GCSE (9-1)


Economics

Macroeconomics and the


Global Economy

INTRODUCTION TO
MACROECONOMICS

6/19/24 1
CONDUCTED BY MS. EMESHA PERERA
PAPER 2: MACROECONOMICS AND
THE GLOBAL ECONOMY – 2 UNITS
3. Government and the economy
3.1.Macroeconomic objectives
3.2.Government policies
3.3.Relationships between objectives and policies

4.The global economy


4.1.Globalisation
4.2.International trade
4.3.Exchange rates

6/19/24 2
1. Economic growth:
2. Inflation
3. Unemployment
4. The current account of the balance of payments Government
5. Protection of the environment and the
6. Redistribution of income economy
7. Fiscal Policy
8. Monetary Policy
9. Supply-side Policy and Government Control
10. Relationships between the objectives and the policies.
11. Globalization
12. Multinational Companies (MNCs) and Foreign Direct Investments (FDIs)
13. International Trade
LESSONS 14. Protectionism
The global
15. Trading blocs
16. World Trade Organization and World Trade patterns economy
17. Exchange Rate and their determination
18. Impact of Changing Exchange rates
6/19/24 3
Traditionally the subject of Economics is
divided under two main branches
Microeconomics
looks at individual parts of
microeconomics and the economy. It
macroeconomics. looks at how individuals,
households or firms make
decisions when allocating
resources. It often involves
analysing specific markets,
such as the markets for
rail travel, teachers, oil,
health care, package
holidays or wheat.

6/19/24 4
WHAT IS MEANT BY MACROECONOMICS? J.M.Keynes is
considered as the father
of Macroeconomics, as
• Macroeconomics is the study of the interrelationships between his book General Theory
economic variables at an aggregate (macroeconomic) level while looking : Employment,interest
at the economy as a whole system. and Money laid the
• Macroeconomic is a study of whole large economic systems such as whole country or foundation for
entire International economy. It involves analyzing the economy as a whole system. macroeconomics.

Examples for macroeconomic variables:


• Total unemployment in an economy,
• Total spending (Aggregate Demand/Expenditure) on goods and services ,
• Gross Domestic Product and Economic growth
• General Price Level and Inflation rate

6/19/24 5
IDENTIFY
MACROECONOMIC
ISSUES AND KEY
TERMS.

Text Book-Page 194


6/19/24 6
MACROECONOMIC OBJECTIVES a) Economic growth
b) Low and stable inflation:
• There are several ways in which economists try to monitor and
evaluate the performance of the economy at the macroeconomic
c) Low unemployment:
level. d) Surplus or balance on the
• Macroeconomic objectives refer to the goals that governments current account of the balance
aim to achieve to improve the overall performance of the
economy. of payments
• When managing the macro economy, the goals or aims e) Sustainable development
that the government intends to achieve through the through Protection of the
macroeconomic policies are called macroeconomic
objectives. environment:
• These are the set of macroeconomic objectives that the f) Equitable Income Distribution
government planned to achieve.

6/19/24 7
MACROECONOMIC POLICY AND INSTRUMENTS
The government has three main types of policy instrument with which to attempt to meet its macroeconomic objectives:

Macroeconomic Polciy Instruments

Fiscal policy: the term ‘fiscal policy’ covers a range of policy measures that affect Taxation
Demand Side

government expenditures and revenues through the decisions made by the Government Expenditure
government on its expenditure, taxation and borrowing to influence the level of
Policy

aggregate demand in an economy.


Monetary policy: this entails the use of monetary variables such as money Interest rate and Money
supply and interest rates to influence aggregate demand. Supply
Supply-side policies: such policies comprise a range of measures intended to Privatization, Deregulation,
Supply-side

have a direct impact on aggregate supply — specifically, on the potential Aid for business, Education
Policy

capacity output of the economy. and training, Research and


development

6/19/24 8
6/19/24 9

You might also like