Cambridge IGCSE Economics — Government and the Macroeconomy

Led by John Maynard Keynes Simulacrum

Government and the macroeconomy for IGCSE Economics — macroeconomic aims, fiscal policy, monetary policy, supply-side policy, growth, unemployment and inflation. Keynes Simulacrum leads; Milton Friedman Simulacrum joins for monetary policy and inflation.

1. Module 4

   Government and the Macroeconomy: Policy, Growth, Unemployment and Inflation

   Led by John Maynard Keynes Simulacrum

   The question

   What are governments trying to achieve with economic policy, how do they use fiscal, monetary and supply-side tools to achieve it, and what are the trade-offs? Keynes Simulacrum covers macroeconomic aims and their conflicts, government budgets (deficit and surplus calculations), reasons for spending and taxation, fiscal policy and its effects. Both simulacra address supply-side policy and economic growth. Friedman Simulacrum leads monetary policy (interest rates, money supply, exchange rate) and inflation (measurement by CPI, demand-pull and cost-push causes, consequences for savers, lenders, borrowers and firms, and policies to control it). Unemployment covers all four types, the labour force survey, unemployment consequences and policies.

   Outcome

   The student can describe macroeconomic aims and conflicts, explain fiscal/monetary/supply-side policy, analyse growth and recession, classify and explain unemployment types, and explain inflation causes and consequences. (Module 4 — Government and the Macroeconomy)

   Sub-units

   1. ○ 4.1 Macroeconomic Aims and Fiscal Policy Open this unit → ✓ ↻
   2. ○ 4.2 Supply-Side Policy and Economic Growth Open this unit → ✓ ↻
   3. ○ 4.3 Monetary Policy, Unemployment and Inflation Open this unit → ✓ ↻
   Begin the course → Print certificate of completion