Quick econ errors + 25 marker structure

Define an index number

An economic data figure that reflects price compared with the base year

Define purchasing power parity and why we use it (2)

To improve accuracy when comparing data between countries. For example compares cost of living between different countries

Define real GDP

Total output of economy adjusted for inflation

Define purchasing power parities (2)

For making comparisons between countries

The rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country

Explain a characteristic of a recession (2)

Falling inflation

Due to reduction in consumer expenditure

What is the an increase in actual growth a shift in

AS curve

What is an increase in potential growth a shift in

LRAS curve

Analysis para structure for econ 25 marker (PCCE)

Point

Cause - Why does this occur

Consequence - Answer question here

Examples/evidence - From extract or own knowledge

(Write in chains of analysis which means writing in minute detail every step without assuming anything)

4 possible ways of evaluating point

1. Weigh up (prioratise) points on either side of the argument

2. Consider SR vs LR impacts

3. Question assumptions made in your theory

4. Consider impacts on stakeholders (winners vs losers)