macro essay writing

Question 1

How would you answer 5 Markers

Answer 1

(1/2) marks knowledge
(2) marks analysis
(1/2) marks application

1. Get knowledge mark and give definition
2. Draw diagram needed (if needed)
3. Start your point by rewording the question
4. Add in the quotations from the extract
5. Explain using the diagram

Question 2

Answer 2

Question 3

what is the macro objective framework?

UK’s 7 macro economic objectives

Answer 3

1. inflation rate at 2% (± 1%)
2. unemployment level low
3. economic growth
4. banalnced balance of payment (current account equilibrium)
5. balanced budget
6. reduce inequality
7. enviromental sustainability

Question 4

what framework is used for evaluating macro paragrpahs?

Answer 4

• P policies
• E elasticity
• T Time
• S Size and Scalability

PETS

Question 5

what questions are asked under the Policy part of the PETS framework?

Answer 5

How would the goverment / central bank respond to this?

Question 6

What questions are asked under the Elasticity part of the PETS framework?

Answer 6

How will the effects change is the elasticties change?
* if in spare capacity (perfectly elastic) of keynesian LRAS
* if in full capacity (perfectly inelastic) of keynesian LRAS

Question 7

what questions are under the Time part of the PETS framework?

Answer 7

• is this effect in the short run or in the long run?
• is this effect permenant or temporary?

Question 8

What questions are asked under the Size/ scale part of the PETS framework?

Answer 8

What does the size of this impact depend on

eg: percentage of cost spent on transportation / financial serives firms