25 Marker On MEO Conflicts

Question 1

Introduction

Answer 1

Define MEOs
Name core objective
Answer question

Question 2

What are MEOs?

Answer 2

Objectives to improve the overall performance of the economy

Question 3

What are the core MEOs?

Answer 3

Low unemployment
Low and controlled inflation
Economic growth
Balanced trade
Fair distribution of income

Question 4

What conflicts will I be looking at?

Answer 4

Inflation vs unemployment
Growth vs inflation
Growth vs sustainability?

Question 5

What diagram should be drawn for inflation VS unemployment?

Answer 5

The Phillips’s curve
Y axis - inflation rate
X axis - unemployment rate

Question 6

Chains of reasoning for inflation vs unemployment

Answer 6

Low inflation -> reduced AD -> via reducing consumption -> firms demand decreases -> lay off workers

Question 7

Evaluation for unemployment vs inflation

Answer 7

High unemployment also reduces consumption which would help make inflation low

Question 8

What diagram should be drawn for economic growth VS inflation?

Answer 8

Ad shifting outwards with a multiplier effect

Question 9

Chains of reasoning for economic growth vs inflation

Answer 9

More GDP -> caused by more C -> more AD -> price level increases -> business confidence increases -> firms invest -> positive multiplier

Question 10

Evaluation for economic growth vs inflation

Answer 10

-If there is spare capacity, the increase in AD would not increase P significantly

• Growth could be positive in times of deflation (-1% -> 2%)
• multiplier may not be significant if firms lack confidence (great financial crash of 2008)

Question 11

Economic growth vs environment explanation

Answer 11

Increased congestion
Increase production
Increased demand for natural resources
Increased demand for land

Question 12

Economic growth vs environment evaluation

Answer 12

More money to invest into sustainable technology

Answer 13

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