Economic Environment

On completion, the candidate should:

• know the factors which determine the level of economic activity:
  • state-controlled economies
  • market economies
  • mixed economies
  • open economies
• know the role of central banks
• know how goods and services are paid for and how credit is created
• understand the meaning of inflation/deflation:
  • measurement
  • impact
  • control
• understand the impact of the following economic data:
  • gross domestic product
  • balance of payments
  • level of unemployment