F585 Core Concepts: a checklist

This is a first list and there may be errors and omissions but my advice to those revising for F585 is be sure to understand

Macroeconomic performance

Trend growth and output gaps

Causes of short and long run economic growth - especially FDI and international trade

Multiplier and multiplier effect

Accelerator effect

Fixed exchange rates

Floating exchange rates

Balance of payments problems and particularly international competitiveness

Purchasing power parity and real effective exchange rates

Terms of trade

Foreign direct investment and multinationals

Globalisation

Fiscal rules

Inflation targeting

Policy trade offs

Pros and cons of monetary union

Economic development

Sustainable economic development

Role of the International Monetary Fund, World Bank and WTO

Twitter Research Tools for economics

Twitter is a great source for keeping up-to-date with news and events; ideas and links to resources. The main issue is noise: there are so many tweets gems.

One way of making sure that essential tweets are not lost in the din is to use a predefined twitter search including the relevant hashtag. I have added links for the OCR Economics units: #F581 search | #F582 search | #F584 search | #F585 search on a list of economic resources I share with my class.

Finally Topsy offers some really useful advanced features for a targeted search of past tweets.

Office Mix for Flipped Learning and Class Projects

Office Mix is a new, free PowerPoint 2013 add-in from Microsoft:

Turn your PowerPoint presentation into an interactive online lesson. We call this a mix. Everything you need to create and share your mix is included. Add audio and video of yourself giving your presentation, write on slides as you talk to them, insert quizzes, practice exercises, and more – all from within PowerPoint. It’s like a screencast, but better. All you need is Office 2013 and the free Office Mix add-in.  

For me, the big advantage Office Mix has over screencast software such as Camtasia it is relatively intuitive and has a low learning curve for anyone familiar with PowerPoint - which is pretty much everyone.There is also the option to insert quizzes. See these Office Mix how-to videos for an overview of features

Here is blog post from a user who spent 20 minutes creating an Office Mix from scratch without prior experience

However, I will be sticking with Camtasia because it is so much easier to do post production edits eg cutting out voice over errors. In Office Mix this requires re-doing the entire  commentary for a given slide.

Over the Summer term I may ask my Economics class to create an Office Mix video on a topic of their choice eg explaining a concept such as elasticity or a multimedia review of a country. They all have free access to Office 2013 as part of the school's Microsoft Student advantage subscription and Office 365 scheme.

Online Excel AS/A level 2015 Economics Launch Event details

Here are links for booking the online Excel 2015 Economics courses

Event Code	Date	Location	Course Title	Status
14LOAB02/01	02/07/2014	Online Event	AS/A level 2015 Economics Launch Event (live online event)	Full
14LOAB02/02	07/07/2014	Online Event	AS/A level 2015 Economics Launch Event (live online event)	Open
14OAB04/01	15/10/2014	Online Event	GCE Economics: Feedback on June 2014 (Unit 3) Live Online Event	Open

Preparing for the new A Level Economics Specification

Time to plan ahead for the new economics syllabus on its way for September 2015. A link to the DfE's page on The New A levels subject content can be found here. Here is a link to the proposed Economics subject criteria (pdf)

Board proposals go to Ofqual in the summer and expect a flurry of promotional activity. I have a lot of brand loyalty to OCR but their INSET requires a day out of school so I am going to book one of the AQA online events: 14 Jul 2014 Book | 16 Jul 2014 Book | 25 Sep 2014 Book

Tutor2U are as always ahead of the curve a free A Level Economics - Specification Briefing can be ordered here 

I expect there will be some healthy discussion on the Tutor2 hosted LinkedIn group which no has more than 1,100+ economic teachers

Relationship between inflation and unemployment

One of my Year 12 AS Economics students asks what is the relationship between inflation and unemployment. The first theory that springs to mind is the Phillips curve but this is generally not expected on the OCR AS economics course.

At AS I'd expect students to use a standard AS- AD diagram to show any link between inflation and unemployment. For instance,an increase in AD causes short run economic growth. Higher output requires more labour so unemployment falls. 

However given spare capacity in the upward sloping shape of the AS curve beyond Y1 (due to shortages and bottlenecks in key industries), the increase in AD results in a rise in the price level from P1 to P2, thus exerting inflationary pressure.

So an increase in aggregate demand results in inflation and reduce unemployment.  

However, does a fall in unemployment always coincide with inflation? No. Any increase in real GDP up to Y1 results in more output and less unemployment but with a constant price level - there is non-inflationary growth

So like so many things in economics, falling unemployment may or may not be associated with inflation depending upon assumptions eg the starting position and the price elasticity of aggregate supply.

The above analysis suggests that unemployment and inflation can be linked but the cause an increase in AD. any relationship between unemployment and inflation is best analysed using the Phillips curve - an A2 topic

Revision video: the current account

Here is a revision video of all the elements of the current account with minimal coverage of the capital and financial account. Watch in conjunction with the ONS The current account balance video

Revision video: Using AD-AS diagrams to answer extended questions

In this video I develop Revision video: using AD-AS diagrams to analyse economic performance to see how to use AD-AS diagrams to answer extended questions set by OCR in Macroeconomics F582.

OCR typically set three types of last question

·         Discuss whether a policy (SS) or policy instrument (R, $/£) can affect: a component of AD (C & I) | an economic indicator eg economic growth | an economic objective eg low and stable prices | economic performance eg GDP and inflation

·         Discuss whether a change in a factor influencing a component of AD can affect a performance indicator eg inflation

·         Discuss whether a change in an indicator of economic performance (economic growth, inflation) is beneficial (do benefits outweigh costs)

NB: R affects I; I affects both AD and AS | G on infrastructure and education affects both AD and AS

Evaluation: L3 assumes cet par – what if there is an unexpected event| is a variable eg R the most important | depends on starting position ie capacity | impacts vary between time periods 

Revision video: using AD-AS diagrams to analyse economic performance

This video explains the link between changes in AD and AS and economic performance using AD-AS diagrams. Key assumption: spare capacity

OCR set three types of last question in F582:

·         Discuss whether a policy (SS) or policy instrument (R, $/£) can affect: a component of AD (C & I) | an economic indicator eg economic growth | an economic objective eg low and stable prices | economic performance eg GDP and inflation

·         Discuss whether a change in a factor influencing a component of AD can affect a performance indicator eg inflation

·         Discuss whether a change in an indicator of economic performance (economic growth, inflation) is beneficial (do benefits outweigh costs)

NB: R affects I; I affects both AD and AS | G on infrastructure and education affects both AD and AS

Evaluation: L3 assumes cet par – what if there is an unexpected event| is a variable eg R the most important | depends on starting position ie capacity | impacts vary between time periods 

Elasticity revision - examples of elastic and inelastic products

Here is an excellent revision page on elasticity from Economic Help with plenty of real world examples as to why products are elastic or inelastic

Real disposable income revision graphic

The level of real disposable income determines how much households can afford to spend and so affects consumption, hence AD

Labelling exchange rate diagrams

Here is a tip for remembering how to label the axis of exchange rate diagrams

Horizontal axis: measures quantity of currency traded eg number of € bought and sold

Vertical axis: measures the price of a currency ie how much of another currency eg $ one unit of domestic currency eg € can buy

Here is an example for Euro exchange rate diagram against the $

Revision video : analysis of a depreciation of sterling

Here is a revision video analysing the impact of a depreciation of sterling on AD and the current account.

The Marshall Lerner condition is only required for A2

Analyse the effect privatisation on economic growth [4]

Answers in economics exams are best written with short sharp clear sentences making appropriate user connectives. Typically you have just 2 lines to earn one mark.

Hidden gem in PowerPoint 2013: widescreen

I'm finding the extra horizontal space in PowerPoint 2013 from using a widescreen rather than standard format, a real boon

to convert an existing PowerPoint to 16:9 access the design tab and then slide size

Recommended Online Glossary

I use a number of online glossaries to check definitions of key terms. I find myself using Encyclo more and more

Comment on whether an increase in the rate of interest reduces investment

Six mark OCR comment questions have 12 lines in the exam paper for an answer. Use short sharp concise sentences with appropriate connectives

Question source: OCR F5812 June 2013

Factors affecting C I G and X-M

Remember: the AD curve will shift if C I G or X-M change. C I G and X-M will change if any of the above factors change.