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Ch 16 3.3 Macroeconomic objectives: complete notes
Neat, exam-ready notebook-style notes for Ch 16 3.3 Macroeconomic objectives, following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Economics Notes for IB Diploma Students (SL and HL): All 30 Topics.
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Free preview: Ch 16 3.3 Macroeconomic objectives notes
A quick look at the chapter from our IB Diploma Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- What you must be able to do
- Measuring growth
- Costs of unemployment
- Weighted price index AO2 AO4
- Limitations of the CPI
- Costs of a high inflation rate
- Costs of deflation
- Sustainable government (national) debt
- Phillips curve (short run and long run)
- Potential conflicts
“I can” checklist: what you must be able to do
- I can calculate growth rates and draw PPC, AD and LRAS diagrams for short- and long-term growth.
- I can evaluate the consequences of growth for living standards, environment and distribution.
- I can calculate the unemployment rate, explain the difficulties, types, natural rate and costs.
- I can draw minimum wage, falling labour demand and deflationary gap diagrams.
- I can calculate inflation from a CPI basket using quantity weights, and explain the limitations of the CPI.
- I can draw and explain demand-pull and cost-push inflation, and the costs of high inflation.
- I can explain deflation and disinflation, their causes, diagrams and costs.
- HL: I can calculate a weighted price index.
- HL: I can measure national debt as a percentage of GDP, link it to the deficit and explain its costs.
- HL: I can draw and explain the short-run and long-run Phillips curve and the AD/AS trade-off.
- I can evaluate the relative costs of unemployment and inflation and the conflicts between objectives.
What is inside the full chapter notes
- Concept notes with 8 worked examples plus HL calculations (every number computed)
- Diagrams: PPC, AD/LRAS growth, labour market, gaps, inflation, deflation, Phillips
- Common mistakes and a "How to score" command-term box
- 12 Quick-check questions A-D, explained
- Paper 1 style (a) 10 + (b) 15 with mark scheme
- Paper 2 style data response (36 marks) with mark scheme
- HL Paper 3 style policy question (16 marks) with mark scheme
- Markbands, quick reference and "I can" checklist
What you get in the pack
- All 30 topics of IB Diploma Economics for students taking Standard Level or Higher Level (first assessment 2022): what economics is, demand, supply, market equilibrium, behavioural economics, elasticity, government intervention, externalities, public goods, asymmetric information, market power, equity, measuring economic activity, aggregate demand and supply, macroeconomic objectives, inequality and poverty, monetary policy, fiscal policy, supply-side policies, international trade, trade protection, economic integration, exchange rates, balance of payments, sustainable development, measuring development, growth and development strategies
- Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
- Every diagram the guide names, drawn and labelled, plus worked examples and model answers that show how to earn the marks
- Quick-check multiple-choice questions with explained answers, plus original Paper 1 (extended response), Paper 2 (data response) and, for HL, Paper 3 (policy) style questions with full mark schemes (no past-paper reprints)
- Common mistakes and a how-to-score command-term guide for every topic
- Quick-reference sheet and an "I can" checklist at the end of every topic
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)
All chapters in this pack
- Ch 1 1.1-1.2 What is economics? and How do economists approach the world?
- Ch 2 2.1 Demand
- Ch 3 2.2 Supply
- Ch 4 2.3 Competitive market equilibrium
- Ch 5 2.4 Critique of the maximizing behaviour of consumers and producers
- Ch 6 2.5 Elasticity of demand
- Ch 7 2.6 Elasticity of supply
- Ch 8 2.7 Role of government in microeconomics
- Ch 9 2.8 Market failure: externalities and common pool resources
- Ch 10 2.9 Market failure: public goods
- Ch 11 2.10 Market failure: asymmetric information (HL)
- Ch 12 2.11 Market failure: market power (HL)
- Ch 13 2.12 The market's inability to achieve equity (HL)
- Ch 14 3.1 Measuring economic activity and illustrating its variations
- Ch 15 3.2 Aggregate demand and aggregate supply
- Ch 16 3.3 Macroeconomic objectives
- Ch 17 3.4 Economics of inequality and poverty
- Ch 18 3.5 Demand management: monetary policy
- Ch 19 3.6 Demand management: fiscal policy
- Ch 20 3.7 Supply-side policies
- Ch 21 4.1 Benefits of international trade
- Ch 22 4.2 Types of trade protection
- Ch 23 4.3 Arguments for and against trade control and protection
- Ch 24 4.4 Economic integration
- Ch 25 4.5 Exchange rates
- Ch 26 4.6 Balance of payments
- Ch 27 4.7 Sustainable development
- Ch 28 4.8 Measuring development
- Ch 29 4.9 Barriers to economic growth and/or economic development
- Ch 30 4.10 Economic growth and/or economic development strategies