Acca F1
Session Objectives
Topic 10
Macroeconomic Factors
Define macro-economic policy Explain the main determinants of the level of business activity in the economy and how variations in the level of business activity affect individuals, households and businesses
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Session Objectives
Explain the impact of economic issues on the individual, the household and the business:
i) Inflation ii) Unemployment iii) Stagnation iv) International payments disequilibrium
Session Objectives
Describe the main types of economic policy that may be implemented by government and supra-national bodies to maximise economic welfare Recognise the impact of fiscal and monetary policy measures on the individual, the household and businesses
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Macroeconomics
It is the study of how society allocates scarce resources which have alternative uses, between competing ends. It focuses on:
Overall demand for goods and services Output of goods and services Supply of factors of production Total incomes earned by providers of factors of production
Difference between Macro- and Micro-economics
Microeconomics –study of economic behaviour of individual consumers, firms and industries Macroeconomics – Considers aggregate behaviour and the sum of individual economic decisions
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Macroeconomic Policy Objectives
Economic Growth Inflation Unemployment Balance of Payments
Factors Influencing Level of Business Activity
Confidence Aggregate demand Capital Use of Resources Government Policy
Topic 10
Macroeconomic Factors
Define macro-economic policy Explain the main determinants of the level of business activity in the economy and how variations in the level of business activity affect individuals, households and businesses
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Session Objectives
Explain the impact of economic issues on the individual, the household and the business:
i) Inflation ii) Unemployment iii) Stagnation iv) International payments disequilibrium
Session Objectives
Describe the main types of economic policy that may be implemented by government and supra-national bodies to maximise economic welfare Recognise the impact of fiscal and monetary policy measures on the individual, the household and businesses
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Macroeconomics
It is the study of how society allocates scarce resources which have alternative uses, between competing ends. It focuses on:
Overall demand for goods and services Output of goods and services Supply of factors of production Total incomes earned by providers of factors of production
Difference between Macro- and Micro-economics
Microeconomics –study of economic behaviour of individual consumers, firms and industries Macroeconomics – Considers aggregate behaviour and the sum of individual economic decisions
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
© accountingclassroom.com 2008
Student Notes for ACCA F1-Accountant in Business
Macroeconomic Policy Objectives
Economic Growth Inflation Unemployment Balance of Payments
Factors Influencing Level of Business Activity
Confidence Aggregate demand Capital Use of Resources Government Policy