· To recap the Paper 1 Mark Scheme

· To revise learning on the macroeconomic equilibrium, Keynesian and neoclassical perspectives and demand side policies.

· To apply the above learning to examples, both theoretical and real-life.

· To develop critical analysis and evaluation skills.

Step 1 – Recap Exam Technique

· Remember the Paper 1 Mark Scheme

· Remember the tips on evaluation

Step 2 – Analyse a Theoretical Scenario.


Image: Some rights reserved by APMus

You should ideally work in a pair or three and, as a team, will analyse the likely macroeconomic impacts of one of the following scenarios.

1) Government announces a large increase in spending on health and education.

2) Chancellor announces tax exemption scheme on new investments for small to medium sized firms.

3) Average wage rises way above inflation for the third month running.

4) Exchange rate appreciation knocks export hopes for manufacturing.

5) Institute of Directors (IOD) latest survey shows clear signs of optimism for the future of the economy

6) Central Bank signals rise in interest rates of ½%

  • You should include at least one diagram.
  • You should evaluate the likely effects – how strong will the impact be?
  • There may not be one single answer – you simply need to be able to justify your predicted outcomes. Evaluation often needs to look at the assumptions we start with – you should be clear about what you are assuming.

Prepare a presentation (using for example Google Docs Presentation on MS Powerpoint) and prepare between two and four slides to show and explain the effects.


Step 3 – Analyse a Real Life Scenario.


Image: Some rights reserved by RambergMediaImages

You ideally need to form different pairs / threes in which you will be able to offer feedback to each other.

Each pair focuses on a region of the world, and each person selects a separate and current headline and article related to a demand side policy that has been introduced by the government there.

· North America

· South America

· Europe

· Africa

· Asia (not Thailand)

· Thailand

You need to summarise:

· Why there was a need for the demand-side policy

· The likely impact and successes / shortcomings of the policy.

· Include reference to at least one diagram

Try to use all of the techniques needed for a top scoring evaluation based essay.

Create a Google doc (or some similar document) that you will share with your partner(s).

A suggested site to search on:

Here is the evaluation spreadsheet to provide feedback with. Make a copy and share it with your partner to offer them feedback with.