Edexcel Theme 2: The UK Economy — Performance and Policies

Economic growth, inflation, employment/unemployment, balance of payments

• 2.1.1 Economic Growth
• 2.1.2 Inflation
• 2.1.3 Employment and Unemployment
• 2.1.4 Balance of Payments

Components of AD, AD curve, shifts in AD

• 2.2.1 The Characteristics of AD
• 2.2.2 Consumption (C)
• 2.2.3 Investment (I)
• 2.2.4 Government Expenditure (G)
• 2.2.5 Net Trade (X-M)

Short-run AS, long-run AS, factors influencing AS

• 2.3.1 The Characteristics of AS
• 2.3.2 Short-Run AS
• 2.3.3 Long-Run AS

Circular flow of income, equilibrium, multiplier effect

• 2.4.1 National Income
• 2.4.2 Injections and Withdrawals
• 2.4.3 Equilibrium Levels of Real National Output
• 2.4.4 The Multiplier

Causes, consequences, sustainability

• 2.5.1 Causes of Growth
• 2.5.2 Output Gaps
• 2.5.3 Trade (Business) Cycles
• 2.5.4 The Impact of Economic Growth

Policy conflicts, demand-side policies, supply-side policies

• 2.6.1 Possible Macroeconomic Objectives
• 2.6.2 Demand-Side Policies
• 2.6.3 Supply-Side Policies
• 2.6.4 Conflicts and Trade-Offs between Objectives and Policies