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Summary Best marco economics notes

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Both for year one and year two economic students to gain a better understanding on the fundamental knowledge of macroeconomics this will get you the best understanding in simple terms

Institution
AQA
Module
Macro









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Study Level
A/AS Level
Examinator
AQA
Subject
Economics
Unit
Macro
All documents for this subject (4)

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Uploaded on
June 6, 2025
Number of pages
12
Written in
2024/2025
Type
Summary

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onetary
policy
Monetary policy
This is the central bank controlls the

base interest rate and money supply to

influence the
economy

The monetary policy comitee Mpc
The B 0 E is run by the Mpc
run
by 9 economists
led by the governor B0 Eof

, Expansionary monetary policy
involves reducing the base rate
which as a result increases the

inflation rate and AD


contractionary monetary policy
involves increasing the base
rate of interest rate which reduces
the inflation rate and reduces AD

Interest rate
Savings on

Expansionary monetary policy
base rate of interest
libour rate
Return
savings
on
individual begin to consume more

than they save
consumption
ADF
PLA
Inflation
However

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