A-Level Macroeconomics Overview

The Trump Administration announced tax cuts in 2018 for American households and firms.

The coronavirus pandemic has decreased investment worldwide.

What is the name of the agreement that was signed in November 2020, that covers a market of nearly 2.2 billion people?

The UK government implemented a furlough scheme, which subsidised 80% of monthly salaries.

The OPEC imposed an oil embargo on the United States in 1973.

The European Union has pledged to become climate-neutral by 2050.

What are the new technical based qualifications called, which are available to 16 - 18-year-olds that last 2 years long?

What is the name given to unproductive businesses that have benefited from government intervention during the coronavirus pandemic?

What was passed by Congress in 1978 to remove "red tape" in the aviation industry?

China's "Made in China 2025" plan aims to make China a manufacturing superpower.

Structural unemployment is caused by technological advances and a lack of training for workers.

The coronavirus pandemic caused cyclical unemployment in the hospitality sector.

Seasonal unemployment can be seen during 'peak season' such as Christmas.

Demand-pull inflation is caused by an increase in aggregate demand.

Cost-push inflation is caused by a decrease in the cost of production.

The World Trade Organization (WTO) allowed the EU to impose tariffs on $4 billion of US goods, due to illegal subsidies provided by the US to Boeing.

Germany has a considerable current account surplus due to its low prices and natural resources.

The Covid-19 pandemic has disrupted global supply chains, causing a shift towards more "domesticated" supply chains.

The Stern Report suggested that climate change is costing the world 20% of GDP every year.

High unemployment paired with high inflation is known as "stagflation".

The Bank of England lowered interest rates to 0.25% following the UK's decision to leave the EU.

The Fed (Federal Reserve) has adopted a new approach to setting inflation targets called "Flexible Average Inflation Targeting" (FAIT).

What is the term used when central banks directly buy bonds from their governments to finance their spending?

Central banks are increasingly buying bonds from companies that fund environmentally friendly projects, as part of "Green Quantitative Easing".

The "moral hazard" principle suggests that excessive government intervention can encourage risky behaviour by banks.

The European Central Bank (ECB) announced a €750 billion Public Sector Purchase Programme (PSPP) in response to the Covid-19 pandemic.

A decrease in corporation tax in the UK has been shown to stimulate investment in the long run.

Investment is a derived demand because it is driven by factors such as consumer demand.

Fiscal policy refers to government actions that directly control interest rates.

The "ceteris paribus" assumption in economics states that all factors except the one being considered remain constant.

A reduction in corporation tax in the UK in 2013 attracted approximately 40 overseas firms to set up bases in the country.

Heathrow Airport's plans for a third runway were approved by the court of appeal.

Boris Johnson pledged a "triple-tax lock" in his 2019 manifesto, promising that VAT, income tax, and National Insurance Contributions would not be increased.

During the 2008 Global Financial Crisis, Germany deployed large stimulus packages, demonstrating its support for Keynesianism.

Financial repression involves government actions to boost inflation and lower interest rates, which can lead to savers losing out on returns.

Greece's fiscal austerity program during the 2010-2012 European debt crisis led to economic growth by 25%.

Pension reforms introduced by the French president, Emmanuel Macron, in 2019 were widely accepted by the public.

British Airways was privatised in 1987 and subsequently saw a significant increase in efficiency.

The UK government has set up Digital Markets Unit (DMU) to regulate firms that have a strategic market status, such as Google and Facebook.

The UK government has pledged to raise teachers' salaries to £30,000 by 2022, as part of its efforts to improve schools.

Boris Johnson announced new immigration plans in 2020 aimed at attracting highly skilled migrants to the UK, which could potentially lead to an increase in the natural rate of unemployment.

China's "Made in China 2025" plan aims to increase investment in high-tech sectors, which could potentially shift the LRAS curve to the right, expanding output in the long run.

The UK government's investment in the Jaguar Land Rover (JLR) warehouse in the West Midlands helped to reduce unemployment levels.

Privatisation of industries always results in productivity improvements and efficiency gains for firms.

The Conservative party has plans to invest in large infrastructure projects like HS2, which aims to improve labor mobility across the UK.

Margaret Thatcher believed that trade unions hindered economic growth by leading to higher wages and better work conditions for workers.

The "work-to-rule" approach can be detrimental to firms' productivity.

FOREX markets are not volatile and are generally stable.

The appreciation of the Pound (£) against the Euro (€) in 2015 made exports more expensive.

The Covid-19 pandemic resulted in a strong US dollar ($) as investors viewed the US as a secure haven for investments.

Fixed exchange rates can help promote stability in oil markets.

The Chinese government devalued their currency, the Yuan, in order to boost their exports and gain a competitive edge in the trade war with the US.

The Covid-19 pandemic caused a shift towards more "domesticated" supply chains globally.

Globalisation leads to the benefits of economies of scale for firms, resulting in lower prices for consumers.

Foreign Direct Investment (FDI) can "crowd out" domestic investment, potentially reducing the attractiveness of domestic investments for governments.

The World Trade Organisation (WTO) ruled in favor of the EU and imposed tariffs on $4 billion worth of US imports in response to the illegal subsidies provided by the US to Boeing.

Outsourcing of production to low-income countries has resulted in structural unemployment in high-income countries.

The "single market" in the EU helps to prevent a "hard border" between Northern Ireland and the Republic of Ireland.

The term "ceteris paribus" implies that all other factors remain constant when examining a specific economic phenomenon.

China's economic development can be traced back to the "command economy" model implemented under the leadership of Mao Zedong.

Deng Xiaoping opened up China to the world by creating four Special Economic Zones (SEZs), which attracted foreign investment (FDI) and led to significant economic growth.

China's transition from a "low-income country" status to a higher income country has caused foreign firms to relocate their supply chains away from China, a process referred to as "China plus one.