The Measurement of Macroeconomic Performance | AQA A-Level Economics (7136)
The Measurement of Macroeconomic Performance
- 51 questions
- 3 subtopics
- Paper 2: The national and international economy, and available on Paper 3
- Paper 2 and Paper 3
The measurement of macroeconomic performance is examined on Papers 2 and 3, and opens the macroeconomics half.
It sets out what governments are trying to achieve, and the indicators used to judge whether they are getting there.
Sample questions from The Measurement of Macroeconomic Performance
Answer each one closed book first, then open the answer.
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The objectives of government economic policy
What is the fourth main macroeconomic policy objective relating to international trade and financial flows?
Show the answer
A current account that stays in balance. -
The objectives of government economic policy
Besides the four main objectives, what fiscal objective might a government also pursue regarding its spending and revenue?
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Balancing the budget. -
Macroeconomic indicators and index numbers
Define an index number.
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An index number expresses a value relative to a base year, which is assigned a value of 100. -
Macroeconomic indicators and index numbers
What is one key use of index numbers in macroeconomics?
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Index numbers are used to measure changes in the price level over time. -
Uses of national income data
How do negative externalities limit GDP as a measure of welfare?
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GDP counts output that causes pollution and environmental damage as positive, without deducting the loss of welfare these externalities cause. -
Uses of national income data
Calculate the percentage change in real GDP when real GDP rises from £2,150 billion to £2,193 billion.
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Percentage change = (2193 − 2150) ÷ 2150 × 100 = 2.0%.
The 3 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| The objectives of government economic policy | Growth, price stability, low unemployment and a stable current account, and the conflicts between them. | 9 |
| Macroeconomic indicators and index numbers | Real GDP, CPI and RPI, unemployment and productivity, and how an index number is built and read. | 21 |
| Uses of national income data | Comparing living standards over time and between countries, and what national income data misses. | 21 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
AQA A-Level Economics Active Recall Guide
Every topic, not just this one. 2,344 questions with their answers.