1. 1.1 The Economic
Cycle and Economic
Growth

2. Lesson 1

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. Objectives
• Review key macroeconomic
terms
• Revise the economic cycle
and the impact of the
different stages
• Understand the step up to A2

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. Objectives
• Review key macroeconomic
terms
• Revise the economic cycle
and the impact of the
different stages
• Understand the step up to A2

7. How would you show growth?
• C
• A
• B
PPB 1 PPB 2

8. What would you expect to see over time?
PPB 1 PPB 2
PPB 3 PPB 4
Will this be smooth, even, growth?

9. How can you represent this
growth?

10. What is associated with the
different periods of the
economic cycle?

11. Objectives
• Review key macroeconomic
terms
• Revise the economic cycle
and the impact of the
different stages
• Understand the step up to A2

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. 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. Objectives
• Review key macroeconomic
terms
• Revise the economic cycle
and the impact of the
different stages
• Understand the step up to
A2

15. Lesson 2

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. 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. In target: the economic cycle
End

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. What are the causes of the
economic cycle?

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. 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