The economic cycle

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The economic cycle

  1. 1. 1.1 The Economic Cycle and Economic Growth
  2. 2. Lesson 1
  3. 3. Unit 4 part 1 • The economic cycle and economic growth • Use of national income data to assess living standards • Inflation and deflation • Unemployment
  4. 4. Objectives • Review key macroeconomic terms • Revise the economic cycle and the impact of the different stages • Understand the step up to A2
  5. 5. Key Macroeconomic terms • Economic growth Increases in national output over time, often measured by changes in GDP • Potential economic growth Growth in the productive potential of an economy • Actual economic growth The extent to which economies grow to their potential
  6. 6. Objectives • Review key macroeconomic terms • Revise the economic cycle and the impact of the different stages • Understand the step up to A2
  7. 7. How would you show growth? • C • A • B PPB 1 PPB 2
  8. 8. What would you expect to see over time? PPB 1 PPB 2 PPB 3 PPB 4 Will this be smooth, even, growth?
  9. 9. How can you represent this growth?
  10. 10. What is associated with the different periods of the economic cycle?
  11. 11. Objectives • Review key macroeconomic terms • Revise the economic cycle and the impact of the different stages • Understand the step up to A2
  12. 12. Building on AS For AS, you were expected to learn about: • The different phases of the economic cycle • The causes of the changes in the economic cycle • What is meant by economic growth • The difference between short and long term growth • Factors that influence the long-run trend rate of growth
  13. 13. Stepping up to A2 The focus on A2 is on: • Being more precise about the different stages of the economic cycle • Analysing and evaluating possible explanations of the different phases of the economic cycle • Evaluating the causes and effects of economic growth in more detail • Analysing the costs and benefits of economic growth, especially in relation to environmental issues and its effects on individuals and the economy • Understanding the possible consequences of inflation and unemployment in greater detail
  14. 14. Objectives • Review key macroeconomic terms • Revise the economic cycle and the impact of the different stages • Understand the step up to A2
  15. 15. Lesson 2
  16. 16. Countdown 1. Draw a PPB (correctly labelled) 2. Mark a point where there are unused resources 3. Mark a point of productive efficiency 4. Mark a point of potential growth 5. Show actual economic growth 6. Show an output gap
  17. 17. Objectives • Quick review of PPB curves • Be able to explain each phase of the economic cycle • Analyse and evaluate the causes of changes in the economic cycle
  18. 18. In target: the economic cycle End
  19. 19. Objectives • Quick review of PPB curves • Be able to explain each phase of the economic cycle • Analyse and evaluate the causes of changes in the economic cycle
  20. 20. What are the causes of the economic cycle?
  21. 21. Over to you…. • Look at your UK GDP growth graph 1. Where do you think the UK is on the economic cycle 2. Why? Explain your answer with using the other information you have 3. What do you think will happen next in the UK economy? Why? End
  22. 22. Objectives • Quick review of PPB curves • Be able to explain each phase of the economic cycle • Analyse and evaluate the causes of changes in the economic cycle

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