Learn › Exam boards › AQA

AQA A-level Economics

The national and international economy (4.2)

The Ceteris modules for AQA A-level economics, The national and international economy (4.2), listed under each specification section. Each module teaches one idea, with questions through the page.

4.2.1 The measurement of macroeconomic performance

Nominal and real numbersTell a nominal figure from a real oneConcept · 6 min · FreeConverting a nominal figure to a real oneConvert a nominal figure into a real oneCalculation · 6 minWhat GDP measuresSay what GDP counts and what it leaves outConcept · 7 minMeasuring inflation with a price indexBuild a price index and work out an inflation rate from itCalculation · 7 min

4.2.2 How the macroeconomy works: the circular flow of income, AD/AS analysis and related concepts

Nominal and real numbersTell a nominal figure from a real oneConcept · 6 min · FreeConverting a nominal figure to a real oneConvert a nominal figure into a real oneCalculation · 6 minWhat GDP measuresSay what GDP counts and what it leaves outConcept · 7 minThe circular flow of incomeFollow a pound round the circular flow and name each leakHow it works · 7 minAggregate demandSay what aggregate demand is and name its four partsConcept · 7 minShort-run and long-run aggregate supplyTell short-run aggregate supply from long-runTell them apart · 6 minThe multiplierWork out a multiplier and apply it to an injectionCalculation · 7 minWhat economic growth is, and what it is notTell growth from a recovery, and real growth from nominalConcept · 7 min

4.2.3 Economic performance

Measuring inflation with a price indexBuild a price index and work out an inflation rate from itCalculation · 7 minDemand-pull and cost-push inflationTell demand-pull inflation from cost-pushTell them apart · 6 minMeasuring unemploymentSay who counts as unemployed and who does notConcept · 7 minTypes of unemploymentSort a case of unemployment into its typeTell them apart · 8 minWhat economic growth is, and what it is notTell growth from a recovery, and real growth from nominalConcept · 7 minDo macro objectives conflict?Weigh the conflicts between growth, inflation and the balance of paymentsDebate · 7 min

4.2.4 Financial markets and monetary policy

What money is forName the functions of money and tell money from wealthConcept · 7 min · FreeHow banks create moneyExplain how one deposit becomes more money in the banking systemHow it works · 7 minMonetary policySay what monetary policy is and who sets itConcept · 7 minThe transmission mechanismFollow an interest-rate change through to inflationHow it works · 6 minWas financial regulation after 2008 worth it?Weigh the case each way on tighter bank regulationDebate · 7 minHow a weaker currency reaches a shop priceFollow a fall in the exchange rate through to what a shopper paysHow it works · 6 min

4.2.5 Fiscal policy and supply-side policies

Fiscal policySay what fiscal policy is and which way each tool pullsConcept · 6 minSupply-side policyTell a market-based supply-side policy from an interventionist oneTell them apart · 6 minAutomatic stabilisersSay what an automatic stabiliser is and name twoConcept · 6 minThe budget deficit and the national debtTell a deficit from a debt, and cyclical from structuralConcept · 8 min

4.2.6 The international economy

Absolute and comparative advantageWork out which country has the comparative advantageCalculation · 7 min · FreeWhy countries tradeExplain how both countries gain from specialising and tradingHow it works · 7 minTariffsShow what a tariff does to price, quantity and welfareDiagram · 7 minQuotas and non-tariff barriersTell a tariff from a quota and the other non-tariff barriersTell them apart · 6 minThe balance of paymentsSay what the current account records and what a deficit meansConcept · 8 minFloating and fixed exchange ratesTell a floating exchange rate from a fixed oneTell them apart · 6 minHow a weaker currency reaches a shop priceFollow a fall in the exchange rate through to what a shopper paysHow it works · 6 minTrade blocs and the WTOTell the stages of economic integration apartConcept · 7 minMeasuring developmentWork out an HDI-style measure and say what it adds to GDPCalculation · 7 minIs globalisation good for developing economies?Weigh the case each way on globalisation and developmentDebate · 8 min