Edexcel Unit 2 – Macroeconomic Performance and Policy

These topics are examined in the IAL Unit 2 for Edexcel Economics.

You can find notes for Unit 2 here:

Measures of Macroeconomic Performance

a) Economic growth
b) Inflation
c) Employment and unemployment
d) Balance of payments
e) Measures of development – Human Development Index (HDI)
f) Other measures of development

The Circular Flow of Income

a) The circular flow of income

Aggregate Demand (AD)

a) Aggregate demand (AD)

Aggregate Supply (AS)

a) Aggregate supply (AS)

The Interaction of AD and AS to Determine Equilibrium

a) Equilibrium level of real output
b) The multiplier

Economic Growth

a) Economic growth

Macroeconomic Objectives and Policies

a) Macroeconomic objectives
b) Conflicts between objectives
c) Macroeconomic policy instruments