Economics Section Government Economy Further Reading Keywords demand

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Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose • Class : Y 11 • Lesson Topic: Government & Economy • Scheme of Work: Objectives and Policies

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose P&D Lesson Objectives Planning and Data ALL (KNOWLEDGE) To identify government’s main objectives and policies. MOST (ANALYSIS) To explain the relationship between objectives and policies. SOME (EVALUATION ) Higher thinking Skills Evaluate the relationship between objectives and policies.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose P&D Planning and Data Planning Tools

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Keyword Definition Demand side Supply side Fiscal policy Monetary policy Supply side Expansionary / contractionary Tight / loose CONNECTIVES

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose CONTRASTING Although… Except… Moreover… If… However… Yet… Apart from… Unless… Despite… As long as… CAUSE & EFFECT Consequently… Due to… As a result… Therefore. . Because of… Because… CONCLUDING Firstly… After… Secondly… Before… Overall… I believe… Finally… I think … In conclusion… it depends… To conclude… short term… Meanwhile… Long term… COMPARING Equally… As with… Like… In the same way… Similarly… Even so… Likewise… CONNECTIVES for Analysis CONNECTIVES for Application CONNECTIVES for Evaluation EMPHASISING Most importantly… Significantly… Notably… Especially… Above all… In particular… Indeed… QUALIFYING Despite… Yet… As long as… Unless… Apart from… If… Moreover… Except… However… Although… ADDING In addition… And… Too… Also… Additionally… As well as… Furthermore… ILLUSTRATING For instance… Such as… In the case of… So… For example… As revealed by… As illustrated by…

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose ATD A-A* 1. To what extent 2. Do you think 3. Evaluate whether (8 -10 m) 10+ connectives & key words C-B Climb the Ladder 1. Explain 2. Compare 3. Analyse (5 -8 m) 5+ connectives & key words E-D Apply to demonstrate 1. Define 2. Describe 3. Identify (2 -4 m) 2 + connectives & key words

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose • List government objectives • 3 Main Policies • 1. Increase Real GDP a) Demand side – Fiscal Policy b) Demand Side – Monetary Policy c) Supply Side Policies.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Fiscal Policy - Government Income • • Income tax NI Contributions Excise Duty Council tax Capital tax Corporation (Business) tax VAT Other UK £ 700 bn +

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Fiscal Policy – Government Expenditure

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Demand Side Expansionary fiscal policy Government spending and taxation used to EXPAND the economy, grow RGDP.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Positive effects • • Unemployment will fall More spending and investment means that GDP will grow Higher tax revenues so the government has more resources Jobs created in public services Improvement in government services Improved infrastructure Impact balance of trade? Exchange rate?

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Negative effects • Demand pull inflation • More imports meaning money goes out of the economy and the current account suffers • Increase in government debt

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Demand Side - Contractionary fiscal policy Government taxation and spending which ____

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Positive effects • People have less disposable income and so demand less which will bring prices down • Government finances will improve and so will have to borrow less money • Amount spent on imports will fall, keeping the money in the country and helping the current account

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Negative effects • Higher taxes and less government spending will mean more unemployment • Growth in GDP will slow down • Poorer government services • Impact balance of trade? Exchange rate?

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose 2. Demand Side - Monetary Policy • Decisions by Central Bank of England to control spending in economy. • Consumers/ Firms borrow and save according to Rate of Interest. • Bo. E controls I. Rate of interest. II. Money Supply.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Tight monetary policy Used to reduce inflation. High rate of interest will encourage saving and discourage _______ thus reducing spending in the economy. Tight = reductionary

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Positive effects • Higher interest rates discourage borrowing which reduces demand • Savers will continue to save and more saving will be encouraged • Strengthen the economy making imports cheaper

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Negative effects • • • Unemployment will rise because of the fall in demand Higher mortgage payments meaning less spending power Higher interest charges for firms meaning less profit Less investment in expansion as borrowing is so expensive Means higher exchange rates making it hard to sell abroad

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Loose monetary policy Used to help the economy recover from recession, and expand the economy. Loose = low interest rates

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Positive effects • Lower interest rate will encourage borrowing and increase demand meaning more jobs needed • May cause the exchange rates to fall making exports more popular, this will help the current account • Less interest paid on government debt meaning they have more free money to spend • Encourages firms to invest

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Negative effects • • Firms may not cope with the increase in demand Supply may not be created quickly enough Inflation will occur Increased imports which is bad for the current account

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Trade offs POLICY RGDP UE Inflation Bof Trade Expansionary fiscal Up DOWN UP DEFICIT Contractionary fiscal Tight monetary policy Loose monetary policy

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Trade offs • As the macroeconomic objectives and policies work against each other, you may have to except trade offs such as high unemployment during a time when inflation needs to be reduced. • Reconfirms that everything works in a CYCLE. • It’s very difficult to get a policy which achieves ALL objectives in the short run. Demand side polices tend to be short run. • SUPPLY SIDE policies CAN improve all objectives but these are Long –term objectives.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose P&D Lesson Objectives Planning and Data ALL (KNOWLEDGE) To identify government’s main objectives and policies. MOST (ANALYSIS) To explain the relationship between objectives and policies. SOME (EVALUATION ) Higher thinking Skills Evaluate the relationship between objectives and policies.

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose ATD A-A* 1. To what extent 2. Do you think 3. Evaluate whether (8 -10 m) 10+ connectives & key words C-B Climb the Ladder 1. Explain 2. Compare 3. Analyse (5 -8 m) 5+ connectives & key words E-D Apply to demonstrate 1. Define 2. Describe 3. Identify (2 -4 m) 2 + connectives & key words

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose R Review the Learning Pass the Parcel Add as much information you can remember from today’s lesson When the horn blows – pass your sheet to the next table!

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose R Review the Learning 2 things your neighbour has learnt today Neighbours 1 question your neighbour wants to ask

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose R Review the Learning Tweet Summarise your learning today into a single tweet 140 characters Keep all of the information STOP

Economics Section: Government & Economy Further Reading R Keywords – demand side, supply side,

Economics Section: Government & Economy Further Reading R Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose Review the Learning 1 question you need to ask 2 new things you learnt 3 pieces of information

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal,

Economics Section: Government & Economy Further Reading Keywords – demand side, supply side, fiscal, monetary policy, expansionary, contractionary, tight, loose 5 minutes. . . GO STOP