Unit 2: Macroeconomic stability

A useful post from tutor2u on macroeconomic stability

http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomic-stability/

Unit 2: Economic stability

Economics student has this nice summary of what is meant by economic stability

http://rapidrevision.co.uk/economics-student/2009/05/10/economic-stability-as-a-macroeconomic-objective/

Unit 3: What should the BoE do with interest rates?

This BBC clip shows the dilemma for the BoE when contemplating what to do with interest rates

http://news.bbc.co.uk/player/nol/newsid_7300000/newsid_7303700/7303730.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

a) Why should they raise interest rates? Using a AD/AS diagram, explain what the effects would be on the UK economy
b) Why should they decrease interest rates? Using a AD/AS diagram, explain what the effects would be on the UK economy

Unit 3: Economic growth and policies to counter a recession in the USA

Two video clips from the BBC; the first explaining that the USA is slowing down and may be heading for a recession, the second Bush explaining his policy to try and avoid the recession

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7190000/newsid_7195300?redirect=7195310.stm&news=1&nbram=1&nbwm=1&bbram=1&bbwm=1&asb=1 >

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7190000/newsid_7197400?redirect=7197449.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

a) Define what is meant by an economic slowdown
b) What reasons are given for the slowdown? Link these to the components of aggregate demand
c) What type of economic policy is Bush suggesting should be used to revitalise the economy?
d) How would his proposals effect the components of aggregate demand
c) Using an aggregate demand/aggregate supply diagram, explain what is likely to happen to the US economy as a result of this policy
d) Evaluate the likely success of his proposed solution