IB DP Economics: Macroeconomics

Explain the difference between nominal GDP and real GDP.

Using real-world examples, evaluate the usefulness of GDP as a measure of living standards.

Explain how an increase in aggregate demand affects the price level and real output.

Using real-world examples, evaluate the impact of an increase in aggregate demand on an economy.

Explain how an increase in productivity can lead to economic growth.

Using real-world examples, evaluate the view that economic growth always improves living standards.

Explain the causes of structural unemployment.

Using real-world examples, evaluate policies to reduce unemployment.

Explain the difference between demand-pull inflation and cost-push inflation.

Using real-world examples, evaluate the effects of inflation on different groups in an economy.

Explain how budget deficits can lead to an increase in national debt.

Using real-world examples, evaluate the consequences of rising national debt.

Explain a possible conflict between economic growth and environmental sustainability.

Using real-world examples, evaluate the conflicts governments face when pursuing macroeconomic objectives.

Explain how progressive taxation can reduce income inequality.

Using real-world examples, evaluate government policies to reduce poverty.

Explain how a decrease in interest rates can increase aggregate demand.

Using real-world examples, evaluate the effectiveness of monetary policy in achieving price stability.

Explain how expansionary fiscal policy can increase aggregate demand.

Using real-world examples, evaluate the effectiveness of fiscal policy in reducing unemployment.

Explain how investment in education and training can increase potential output.

Using real-world examples, evaluate the effectiveness of supply-side policies in achieving economic growth.