Acca F1

Topics: Inflation, Monetary policy, Macroeconomics, Economics / Pages: 8 (1845 words) / Published: Aug 24th, 2011
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

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