Revision Mind Map: External Economic Shocks

This is an important topic at A2 and you can also bring in useful ideas in AS macro papers too. A revision mind map is attached together with the original mind map for colleagues who might want to amend and develop further.

Notes to students:

All economies that are partof the global trading system are exposed to one or more exogenous shocks They can be either demand or supply side They can be positive or negative in terms of their impact on prices, output, jobs and living standards It is important to be able to use AD-AS analysis to show some of the effects of shocks Evaluation is key in these sorts of questions - how large is the shock? is it temporary or longer-lasting? Consider how policy-makers can respond to shocks and understand the importance of economic flexibility in dealing with the aftermath

External_Economic_Shocks.pdf Global_External_Economic_Shocks.mmap