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Summary Edexcel A/l Economics - Conflicts between macroeconomic objectives
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Edexcel A/l Economics Unit 2 Conflicts between macroeconomic objectives
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CONFLICTS BETWEEN MACROECONOBJECTIVES
Equilibrium on
Economic Reducing Controlling Su
the balance of
Growth Unemployment In ation De
payment
• Business Expansion • Cost Push In ation • Export Led Growth • Subs
green
Economic therefore more job
• Higher incomes - more
• Inves
opportunities • Demand Pull In ation deve
Growth demand for imports
( AD ↑ HIGHER PROFITS ) ( AD ↑ Consumption ↑ ) • Importing raw materials • Deple
( Firms Spending ↑ ) • More
• Increased AD for goods • Mor
• More people actively
due to high disposable • Higher disposable rese
Reducing contributing in the
economy
income income
Unemployment • Workers can bargain
( Therefore more imports ) • Mor
pollu
( More Productivity )
higher wages
• Increase taxes and • Higher Unemployment • Domestic goods are cheaper
interest rates
Controlling ( Businesses do not have much
( Consumers will buy more
domestic goods )
In ation ( Therefore more savings
lesser spending )
pro ts to expand businesses )
• Exports will become cheaper
Equilibrium on • Exports and imports are • Export sector might be
• Exports might increase
the balance of balance growing ( More jobs ) • Demand pull In ation
payment
• Increasing taxes on oil
and non renewable
Sustainable resources
Development
• Rules and regulations
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