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Economics WEC12/01 June 2023

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1. Macroeconomic concepts: circular flow withdrawals (savings), Phillips curve trade-off (inflation vs unemployment), classical LRAS characteristics (inelasticity at full employment), consumer confidence effects from house price changes, ECB monetary tightening (quantitative easing cessation and asset sales). 2. Economic indicators: nominal GDP growth and population change in China, GDP per capita calculations, unemployment impacts on public finances. 3. Aggregate demand and supply shifts: impact of business confidence fall in Germany, output gap consequences in Vietnam (negative output gap effects). 4. Inflation and trade balance: inflation′s negative impact on India′s balance of trade through competitiveness and import costs. 5. Fiscal and monetary policy tools: government spending multipliers, marginal propensity to consume (MPC) calculations, effects of base interest rate changes on economic activity. 6. Inflation measurement and deflation explanation: CPI inflation trends in Rwanda, definition and implications of deflation in economic contexts.
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