Comprehend and explain causes, effects, benefits and costs of the following to different groups and economic agents - sustainable economic growth - unemployment, including cyclical, structural, frictional, seasonal, natural, hidden, long-term and underemployment - inflation, including headline, underlying, demand-pull, cost-push, imported and inflation expectations.

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Comprehend and explain - cyclical and structural factors affecting movements and shifts of short- and long-run aggregate demand and supply - the factors affecting the production possibility curve - the concept of the multiplier effect and calculate the value of the simple Keynesian multiplier, in terms of the marginal propensity to consume and save - the four phases of the economic cycle, in the context of macroeconomic objectives - the macroeconomic objectives of sustainable economic growth: full employment; price stability; external stability; sustainable development; and improved living standards - how interest rates and federal budget decisions are policy tools that influence economic growth.

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Comprehend and explain the role in fiscal policy of automatic stabilisers and the role of discretionary spending in influencing aggregate demand and stabilising the economic cycle, and apply using diagrams. Economics 2025 v1.4