Chapter 1

Measuring Domestic output,National income &the price level

1) Calculation (normally carries >15 marks)2) Concepts &diagram of business cycle3) Shortcomings of GDP in measuring well-being

Chapter 2

Unemployment & inflation

1) Distinguish types of unemploymenta. Frictional and structural b. Full employmentc. Cyclical

2) Inflationa. Distinguish types of inflation (demand-pull inflation &cost-push inflation)b. Calculate the inflation rate c. Explain inflation effects (who hurts by inflation, who benefit from inflation)

Chapter 3

AD and AS

1) Discuss the factors that shift AD and SRAS2) Discuss the impact of shifts in Ad & SRAS

Equilibrium price ↑ or ↓Equilibrium Real GDP ↑ or ↓Draw AD-SRAS diagram (normally 3 sub Qs-15 marks)

3) 3 reason AD curve slope downward and 2 reason SRAS curve slope upward

Chapter 4 Part 1

Differentiate between recession gap and inflationary gap

1) must be able to draw diagram to show the gap 2) main point s to discuss:

Current Real GDP>or < Natural Real GDP Current U> or < Natural unemployment rate Surplus or Shortage in the labour market

3) Explain how Self-Regulating Economy eliminates inflationary or recessionary gaps.

Chapter 4 Part 2

1) Describe the Simple Keynesian Model 2) Explain the Consumption function and saving function 3) Define multiplier

Chapter 5

1) Define fiscal policy2) Explain how the tools of fiscal policy affect AD in order to solve recession and inflation problem

Chapter 7

1. Define monetary policy2. Explain 3 tools of monetary policy used and how they affect the money supply3. Distinguish between easy money policy and tight money policy in order to solve recession and

inflation problem.

Chapter 5 & 7

Monetary and Fiscal policy on AD

How to solve Recession and Inflationary Economic problems using different type of

Monetary Policy Fiscal PolicyOMOS Government expensesReserve ratio taxesDiscount rate

Chapter 6

1. Define Concepts2. Explain the functions of

Bank Negara Malaysia ( choose 5 out of 11 functions ) Money (all )

Chapter 8

1. Differentiate between Absolute and comparative advantage 2. Use comparative advantage to determine trading pattern (specialization &export) between

countries. Calculation needed

International Trade

3. The benefits of international trade –at least 4

4. The types of trade Barriers –at least 4 out of 75. The arguments to restrict international trade