AS. Macroeconomics

Aggregate supply & demand and macroeconomic equilibrium.
Macroeconomic performance indicators including inflation
Balance of payments, exchange rates and international competitiveness.
International trade

Now we turn our attention to the macroeconomy. Here we use similar tools for analysis, but we are now interested in the interactions between economic variables at the whole economy level.

Our analysis will centre around four topics. Firstly we will adapt what we have already learned about supply & demand and equilibrium to consider aggregate supply and demand and macroeconomic equilibrium. Next we consider performance indicators at the macroeconomic level and consider inflation. We then introduce international factors, by considering the balance of payments, exchange rates and international competitiveness. Finally we focus on trade and various approaches to international trade such as protectionism, trade liberalisation and economic integration.

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