Learning outcomes

  • Identify and explain how household, business and government behaviour determine aggregate demand and supply in an economy.
  • Recognise the key factors which contribute to and detract from long-term economic growth, including market failure and government policy.
  • Illustrate the operation of open and closed economies, and the processes of balance of payments and exchange rate adjustment.
  • Use these principles in an array of contexts so as to analyse economic problems (such as unemployment and inflation) and evaluate local and global solutions.

Assessment Scenario

choose from one of the following titles:
1. Outline and Explain, with examples, how Governments use Macroeconomic policy to increase Economic welfare. How successful have UK Governments been in the last 10 years and what challenges still remain?
2. Select two key Government Policy objectives and explain how either Fiscal Policy or Monetary Policy can be used to achieve these and what other factors influence the chances of success.

3. Evaluate the success of Government macroeconomic Policies to achieve both lower levels of Unemployment and lower rates of Inflation over the last 10 years.

4. Using Economic Policy analysis, outline and evaluate the possible positive and negative effects of BREXIT on standards of living in the UK.


Your essay must contain:
1. Introduction – outline your ‘plan of attack’ and explain key concepts and definitions. (+/-300 words)
2. An explanation and analysis of the policies and theories relevant to your title
3. Current or historic relevant data, including charts and diagrams where appropriate
4. A full explanation of how the policies and theories can be applied and their expected effects
5. Conclusion – where you draw together your analysis and produce a balanced, evaluated conclusion (+/- 400 words)

Reference Style : Harvard referencing