Economics · Unit 3: Macroeconomics

EC3.3 — Macroeconomic objectives

Economics · SL / HL · syllabus-mapped notes

1. EC3.3.1

   Economic growth

   Explain how economic growth is measured, distinguish short-term from long-term growth, and evaluate its consequences.

2. EC3.3.2

   Low unemployment

   Explain how unemployment is measured and why that measurement is difficult, distinguish its causes, and evaluate its costs.

3. EC3.3.3

   Low and stable rate of inflation

   Explain how inflation is measured using the CPI, the limits of that measure, and the causes and costs of inflation and deflation.

4. EC3.3.4

   Relative costs of unemployment versus inflation

   Evaluate the trade-off between unemployment and inflation, and which is the more costly.

5. EC3.3.5

   Sustainable level of government (national) debt

   Evaluate what makes government debt sustainable, measured against GDP, and how deficits build it up.