100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
A2 Level Macro CIE Economics Notes for Data Response & Essay paper with predicted essay questions £8.34
Add to cart
Quickly navigate to
Preview
  2.  
  3. A2 Level Microeconomics And Macroeconomics
  4.  
  5. A2 Level microeconomics and macroeconomics

Essay

A2 Level Macro CIE Economics Notes for Data Response & Essay paper with predicted essay questions

 1 purchase
  • Module
  • A2 Level microeconomics and macroeconomics
  • Institution
  • A2 Level Microeconomics And Macroeconomics

This digital copy includes A2 Level Macro (64 pages) fully written essays originally + all the possible predicted essay questions These essays can be sold separately (mix and match) or in bundle. This will be a really amazing and useful guideline for the data response and essay paper. Just rea...

[Show more]

Preview 4 out of 64  pages

Document information

  • October 6, 2023
  • 64
  • 2023/2024
  • Essay
  • Unknown
  • A+

Subjects

  • a2 microeconomics
  • a2 macroeconomics
  • a2 cie macroeconomics essay
  • a level economics data response and essay notes

Written for

  • A2 Level microeconomics and macroeconomics
All documents for this subject (1)

Seller

avatar-seller
sydneylee

Content preview

A2 MACRO ESSAY NOTES




m
co
s.
ote
en
le
ey
dn
sy

,GDP and standard of living

Discuss whether GDP is a reliable indicator of changes in the standard of living in an economy


GDP is the gross domestic product which measures all goods and services a country produces in a year.
Increase in GDP means increase in income and consumers will be able to enjoy more goods and services.

Comparison of living standards between countries are based on changes in real GDP produced within an economy
over a period of time.
- GDP per capita is a measure of the average income per person in a country.




om
- Real GDP per capita takes inflation into account.

Standard of living is the material well-being of an average person in a given population. It is typically measured
using gross domestic product (GDP) per capita.




.c
GDP is an indicator of measuring living standards:
GDP reflects actual value of goods and services produced and consumed in the economy.




es
1. An increase in GDP indicates economy is growing. As more output generally means more goods and services
being enjoyed by the consumers, showing an increase in living standards.
- The numbers as measured by GDP can be interpreted objectively since they are not subjective estimates.
ot
- A country with high GDP and consumption level can thus be understood as being a developed country with high
living standards.
en
2. Economy experiencing economic growth also encourages firms to increase investment and number of
employment opportunities as firms seek to expand their business.
- More people employed means more people earning an income thus living standard increases.
- Generally, a significantly higher GDP is believed to come hand in hand with many other improvements such as
le

high income, education, health and environmental protection.

3. GDP is a standard measurement method set by the United Nations, meaning it is one of the the most widely
ey



used measurement methods in the world and can be easily employed to compare state of economies between
countries.
- Through comparison, a country is able to determine its level of economic standing and the scope of of its
development progress
dn




GDP is NOT a reliable indicator
sy




However GDP may not be a reliable measure of living standards as it cannot take other factors that may influence into
consideration.

1. High GDP may be caused by high level of population levels
- It does not indicate high living standards unless real GDP per capita is used.

2. Any economic ‘bad’ event can also increase GDP even if quality of life has fallen
- Higher petrol consumption from being n the road longer due to traffic jams can increase national output

3. GDP fails to consider income distribution
- Uneven distribution usually means an increase in GDP may only disproportionately benefit higher income earners
and worsen the distribution gap

,The Kuznets curve represents how higher income per capita can lead to
increase in income inequality




om
4. GDP ignore negative externalities
- Pollution from industrial factory production will lead to a reduction in living standards. Hence using GDP as a measure of
living might lead to overestimation.




.c
5. GDP ignores value of goods and services which are not traded
- Goods swapped in batter economy, housework, black economy (work not declared to the government) and non-
marketed goods (DIY)




es
6. Changes in GDP does not reflect true change in quality of goods and services
- E.g. Price of DVD players have gone down over the years and might reduce national income even though quality of the
goods and number of features have improved

7. Purchasing power parity
ot
- There cannot be a true comparison between different countries as there is a different purchasing power of local
en
currencies.


Due to problems associated with using GDP as a measure of comparing living standards, other alternative indicators
le

include:

1. Human Development Index
ey



- Index combining the standard of living as measured by GNI per person, life expectancy at birth and adult literacy.
- Takes into account real GDP per capita and also other measures such as Health and Education standards in the
economy
- Life expectancy is linked to good diet, health services and proper housing
dn




- Adult literacy is an indicator of good educational standards, employment propects and general life chances which leads
to higher development
- HDI offers wide range of indicators of living standards other than income that can be added together to give a single
value between 0 and 1
sy




2. Measure of Economic Welfare (MEW)

- Takes into account factors which impacts quality of life such as leisure and working hours.
- These factors are added to the GDP figure while factors that reduce living standards such as crime and pollution level
are deducted.

3. Multidimensional Poverty Index (MPI)

- Measures the traditional monetary poverty and three standard dimensions including deprivations in health,
education and living standards that people face simultaneously.
- It asses poverty at an individual level.
- E.g. if an individual is deprived of a certain level of nutrition or is child under 18 years of age has died, it is considered to
be under health poverty.

, Conclusion:

- GDP is distorted by inflation and real GDP is a more accurate indicator of development
since it is adjusted for inflation
- Regardless, use of GDP to measure living standards in adequate
- Other indicators can be used with GDP and real GDP to obtain more accurate picture of living standards. This includes
HDI which takes into account output, adult literacy, life expectancy and MEW which considers output, environmental
damage and unpaid work.




om
.c
es
ot
en
le
ey
dn
sy

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller sydneylee. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £8.34. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64302 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now

Start selling

Recently viewed by you

Essay ·

(0)

Paper Organisatiepsychologie -1854- NTI. Cijfer: 7,3. Inclusief bijlagen en beoordeling van de docent.

Exam (elaborations) ·

(0)

Moduleopdracht inleiding toegepaste technische bedrijfskunde incl. feedback en vereisten Cijfer 6,5

Exam (elaborations) ·

(0)

2024 MOCKS EDEXCEL A level MARKSCHEME MATHS 2306 9MA0-02 A level MARKSCHEME Pure Mathematics 2 - June 2023

Package deal ·

(0)

RASMUSSEN COLLEGE MDC 1 FINAL EXAM STUDY PACKAGE WITH QUESTIONS AND ANSWERS (2024 / 2025) (VERIFIED ANSWERS)

Exam (elaborations) ·

(0)

Focused Exam: Abdominal Pain Results | Turned In Advanced Health Assessment - Chamberlain, NR509 SHADOW HEALTH

Exam (elaborations) ·

(0)

Test Bank For Varcarolis's Canadian Psychiatric Mental Health Nursing, 3rd - 2023 All Chapters - 9780323778794

Exam (elaborations) ·

(0)

Exam (elaborations) NR 507 Week 6 Quiz – Advanced Pathophysiology (NR 507 Week 6 Quiz – Advanced Pathophysiology) ) )

Essay ·

(0)

A-level English Wife of Bath essay: Explore how marriage is presented in The Wife of Bath’s Prologue

Exam (elaborations) ·

(2)

Pearson Edexcel GCSE (9–1) History BOOKLET B4: Early Elizabethan England, 1558–88 Questions Paper 2023

£8.34  1x  sold
  • (0)
Add to cart
Added