ECONOMICS
Stage 2
Thinking Like an Economist
Economic inquiry skills
Investigate scenarios and economic problems through:
- applying principles, models, and terminology appropriately in a variety of economic contexts
- communicating reasoned arguments and evidence-based recommendations.
Data analysis
- Understand a range of qualitative and quantitative economic data.
- Use data to understand economic activity, the behaviour of people, businesses, markets and governments.
- Analyse data, identify patterns and propose decisions, based on data contained in tables and graphs.
- Understand economic modelling. (Note: students are not required to calculate the coefficient of determination (r-squared), or linear equations).
Macroeconomics
- Apply understanding of indicators to determine the phase of the business cycle that an economy is in.
- Analyse the effect of leakages and injections on the level of income and expenditure in an economy.
- Analyse the potential cause and effect of changes in the aggregate demand and aggregate supply in the AD–AS model.
- Analyse the aggregate demand – aggregate supply (AD–AS) model (including both short-run and long-run aggregate supply curves) to identify equilibrium in the model and determine output and price level.
- Explore the policies that governments and central banks use to meet macroeconomic objectives in different phases of the business cycle.
ECONOMIC CONTEXTS
Macroeconomic management
- Apply their economic thinking to analyse the fiscal policy settings within a specified economic context.