AQA GCSE Economics

How the economy works (3.2)

The Ceteris modules for AQA GCSE economics, How the economy works (3.2), listed under each specification section. Each module teaches one idea, with questions through the page.

24 modules
5 sections
2 free

Modules marked A-level depth teach the GCSE point and go further than the GCSE course needs.

3.2.1 Introduction to the national economy

Nominal and real numbersTell a nominal figure from a real oneConcept · 6 min · Free What GDP measuresSay what GDP counts and what it leaves outConcept · 7 min The circular flow of incomeFollow a pound round the circular flow and name each leakHow it works · 7 min

3.2.2 Government objectives

Absolute and relative povertyTell absolute poverty from relative povertyTell them apart · 6 min Measuring inflation with a price indexBuild a price index and work out an inflation rate from itCalculation · 7 min Demand-pull and cost-push inflationTell demand-pull inflation from cost-pushTell them apart · 6 min · A-level depth Measuring unemploymentSay who counts as unemployed and who does notConcept · 7 min Types of unemploymentSort a case of unemployment into its typeTell them apart · 8 min What economic growth is, and what it is notTell growth from a recovery, and real growth from nominalConcept · 7 min Do macro objectives conflict?Weigh the conflicts between growth, inflation and the balance of paymentsDebate · 7 min · A-level depth

3.2.3 How the government manages the economy

Fiscal policySay what fiscal policy is and which way each tool pullsConcept · 6 min Monetary policySay what monetary policy is and who sets itConcept · 7 min · A-level depth Supply-side policyTell a market-based supply-side policy from an interventionist oneTell them apart · 6 min The budget deficit and the national debtTell a deficit from a debt, and cyclical from structuralConcept · 8 min · A-level depth

3.2.4 International trade and the global economy

Why countries tradeExplain how both countries gain from specialising and tradingHow it works · 7 min · A-level depth TariffsShow what a tariff does to price, quantity and welfareDiagram · 7 min · A-level depth Quotas and non-tariff barriersTell a tariff from a quota and the other non-tariff barriersTell them apart · 6 min · A-level depth The balance of paymentsSay what the current account records and what a deficit meansConcept · 8 min Floating and fixed exchange ratesTell a floating exchange rate from a fixed oneTell them apart · 6 min How a weaker currency reaches a shop priceFollow a fall in the exchange rate through to what a shopper paysHow it works · 6 min Trade blocs and the WTOTell the stages of economic integration apartConcept · 7 min Is globalisation good for developing economies?Weigh the case each way on globalisation and developmentDebate · 8 min

3.2.5 The role of money and financial markets

What money is forName the functions of money and tell money from wealthConcept · 7 min · Free · A-level depth How banks create moneyExplain how one deposit becomes more money in the banking systemHow it works · 7 min · A-level depth