1. AS Macro Revision
AS Macro – Hints on Exam Technique
Spring 2014

2. We add new resources / links / articles every day
to our Economics blogs
Follow this link for the AS Macro Blog on Tutor2u
www.tutor2u.net/blog/index.php/economics/categories/C59

3. AS Macro – Know The Essentials
• Determinants of macro performance
– Understanding AD-AS analysis / changes in AD and AS
– Using this AD-AS analysis to explore recent and
current developments and policies e.g. Recession and
recovery, unemployment and inflation, trade
• Analysing and critically evaluating a range of
macroeconomic policies (e.g. MP, FP and SS-P)
– How do policies work?
– What are the limitations / constraints of each policy?
– What are some of the key assumptions underlying
different economic theories
– Which policies are most effective in achieving goals?

4. Macro Essentials (2)
• Understand some of the external environment
and how it impacts on UK economy (e.g. Events in
Euro countries, effects of globalisation)
• Try to be aware of how the different macro
topics link together
–
–
–
–
Inflation and unemployment
Growth and trade balances
Productivity and business profits & investment
Investment in new capital and trade competitiveness
• The key is to show the examiner that you know
what is actually happening in the UK economy –
that have good contextual awareness of the
world around you

5. Macro performance and stability
• Domestic objectives:
– GDP: Real economic growth (short and long term)
– CPI: Price stability (low stable positive inflation)
– Jobs: Achieving higher employment / less unemployment
– Higher living standards (GNI per capita and other measures of
well-being and social welfare, addressing inequality issues)
• External objectives
– Sustainable position on the balance of payments
– Improving competitiveness in global markets
• Restoring economic stability – building a durable recovery
– Coping with domestic and external economic shocks
– Putting in place effective policies for stronger growth & jobs
– Re-balancing the economy, less debt-fuelled consumption

6. Building a Strong Exam Paragraph
One Main Point
per Paragraph
Analyse / use
Connectives
Support with
Examples /
Evidence
Evaluate the
actual point you
have made
It is important to focus on one key
argument in each of your main
paragraphs – avoid a scatter-gun
approach! Build chunk paragraphs!
Many students miss out important parts
of the explanation! Provided that you
explain the relevant economics with
clarity and accuracy, you will do well!
Use the data available in the exam
extracts but also introduce into your
answer relevant examples and evidence
based on your wider economics reading!
This is really important! Focus on the
argument in your paragraph and
challenge / question this point rather
than a general evaluation point!

7. UK Economy is affected by many External Factors
When writing about the UK, keep in mind that – as an open
economy – many outside factors impact on key macro indicators
Growth in BRICs and other high-growth
emerging nations
Economic problems in the Euro Area
Changes in world commodity prices
such as food and hard metals
Fluctuations in exchange rates e.g. $
and Yuan and the Euro

8. General Exam Hints
• Try to ensure your answers have a clear, logical structure
• For longer style questions, look to make, analyse and evaluate
four key points or arguments before the final reasoned paragraph
• Use analysis diagrams – know your AD-AS analysis perfectly
• Evaluate arguments/policies as you go – you must evaluate each
point made in term
• Where possible, use evidence to provide support for arguments
or to refute a point of view
• Present an argument and conclude on the basis of that argument
• Maintain a high quality of presentation, especially in high mark
questions and with your diagrams
• Quality of writing (EdExcel): This will be taken into consideration
for questions marked with an asterisk (*)

9. Things to Avoid! Quotes from Exam Reports
Bullet point
answers and
diagrams drawn
without rulers
do not endear
candidates to
examiners
Evaluation was too
often undeveloped
with examiners
wanting a little more
than “supply side
policies take a long
time to work and
are very expensive”
Among weaker
candidates there
was too much
description and
not enough
analysis and
evaluation
All of the essay
questions require
evaluation, so
many candidates
lose marks by
providing
‘one-sided’
answers

10. Distinguish Between – Avoid Common Mistakes!
In AS macro papers many students confuse similar-sounding
concepts and measurements – here are some examples!
• Please make sure that you can distinguish between:
1. Productivity and production
2. Fiscal deficit and a current account deficit
3. The rate of inflation and the general price level
4. Short run and long run aggregate supply
5. Money income and real income
6. Economic growth and economic development
7. Unemployment rate and employment rate
8. Interest rate and the exchange rate
9. Budget deficit and the national debt
10. Consumer price index (CPI) and retail price index (RPI)

11. Improving Your Evaluation in AS Macro
• Consider and explain the effects on different agents – e.g.
Explain how a rise in the exchange rate will have more effect on
car manufacturers than construction businesses
• Consider the short run versus long run effects: Some monetary
and fiscal policy changes have a fairly immediate effect, others
have longer time lags. Supply-side policies often have very long
time frames before the full effects are seen
• Consider the elasticity of the AS curve following a change to AD
• Consider (and explain) the likely size of a multiplier effect after
a change to one or more components of AD
• Consider (and explain) possible accelerator effects – i.e. A rise in
exports might cause an increase in business capital investment

12. 10 Top Tips from the Economics Examiners
1. Use diagrams and ensure they are clear, annotated and correct!
2. Use plenty of real world examples - often exam questions will say
“using the data and your own knowledge”
3. Use precise terminology – learn your definitions well, often start an
answer with a good definition!
4. Pick up on ‘trigger words’ e.g. solely, inevitably, always
5. Breadth & Depth – avoid a list, but don’t simply make one point!
6. Answer the question but back up any assertion made with evidence or
example
7. Beware twists in questions e.g. evaluate the reasons for and
consequences of a policy
8. Don’t feel evaluation must always be a criticism. You will also gain
credit for explaining why a strategy is particularly effective
9. Avoid repeating yourself in a conclusion
10. MANAGE YOUR TIME well by looking at the mark allocation for each
question/part

13. EdExcel – The 30 Mark Macro Question
In 30 mark question – 18 marks are available
for Knowledge, Application and Analysis
6 marks are usually reserved for definitions
and a relevant theory diagram
12 marks are reserved for explaining the
relevant macro economic theory
12 marks are for evaluation
• The examiners might award 4+4+4 for three pieces of
evaluation or 6+6 for two very-well explained pieces.

14. OCR – AS Macro – Comment / Evaluation Questions
Comment questions
• 2 comment questions - usually 6 markers and follow similar pattern
• Comment on whether a fall in unemployment will increase economic growth
• Comment on whether an increase in income tax would reduce a country’s
inflation rate
• Analysis marks (3) clearly explaining why it 'would'
• Evaluation marks (3) - explain two reasons why it 'may not'
• One evaluative statement well explained can gain the 3 marks but saying it
depends on the size of the increase in income tax.... the bigger the larger the
effect (explained!) will only ever get 1 mark as its too basic
The 18 market question
• Advise 3 fully developed evaluative paragraphs (this might be 2 and a brief
one in conclusion if struggling for time)
• In each paragraph:
• One key point per paragraph - Explain, analyse, support
• Evaluate the point

15. Get help on the AS
macroeconomics course
using twitter
#econ2
@tutor2u_econ
www.tutor2u.net