Economics Data Interpretation Unit 2 Checklist

The Unit 2 Data Interpretation is worth 10% of the whole year’s final score. There are a total of two topics that this test covers, Introduction to Macroeconomics + Economic Growth.

Introduction to Macroeconomics

• The concept of macroeconomics
• The concepts of total spending, total output and total income and the relationship between them
• The concept of the five sector circular flow of income
• The concepts of equilibrium, leakages and injections in the circular flow of income
• The effect of changes in leakages and injections on the level of equilibrium in the circular flow of income model
• The concept of Gross Domestic Product (GDP)
• The expenditure approach to measuring GDP, i.e. GDP = C+I+G+(X-M)

Economic Growth

• The concept and measurement of economic growth
• The distinction between nominal gross domestic product (GDP), real GDP, and real GDP per capita
• GDP as a measure of economic growth
• The demonstration of economic growth using the Production Possibility Frontier (PPF) and Aggregate Production Function (APF)
• The determinants of economic growth
• The costs and benefits of economic growth
• The trends in economic growth in Australia over the last five years