Rigour in ADAS Analysis – Top Tips for JC Economics Students follow the rigour expectations set out in other topics. JC Economics tuition students at TET would be familiar with rigour in Demand and Supply topic, where the price adjustment process accompanies the explanation of each diagram. Likewise, under Firms and How They Operate, H2 Economics students are expected to derive the equilibrium output based on the profit-motive and compare average cost and revenue to derive the profit outcome.
Rigour in ADAS Analysis – Top Tips for JC Economics Students (1)
A Level Economics students cannot underestimate the significance of the Aggregate Demand (AD) and Aggregate Supply (AS) model in economic analysis, particularly for understanding national income and price levels. Students should use this model as their default diagram in answering questions, as it’s easier to draw and offer more insights (e.g. including GPL changes) as compared to the circular flow diagram. Students should also be familiar with the multiplier process, emphasising its role in GDP analysis and the assumption of spare capacity.
Tip No. 1: Use ADAS model as default diagram unless question specifies the need for Circular Flow model.
Rigour in ADAS Analysis – Top Tips for JC Economics Students (2)
When explaining the multiplier process, the full multiplier (or reverse multiplier) process is only relevant for questions on the impact of an event on real national income, real GDP or the circular flow of income. For questions with a larger scope e.g. impact of an event on an economy (all 4 goals), a succinct version of the k process would suffice. Instead of multiple shifts in AD, students can depict one single shift on their diagram.
Note that the full multiplier process requires students to show numbers and two rounds (of change in induced spending and withdrawals).
Tip No. 2: Be familiar with the multiplier process – both succinct and detailed
Rigour in ADAS Analysis – Top Tips for JC Economics Students (3)
Familiar with TET’s acronyms for memorising AD and AS factors like ICEICEPIQ for AD factors and WIG for change in production costs can be very helpful. In addition, the concept of marginal efficiency of investment (MEI), which relates to investment profitability is crucial for essay questions with a smaller scope (e.g. impact on investments instead of impact on economy). Students are expected to draw the MEI curve for such questions and depict movements and shifts in the curve based on different factors affecting investments.
Lastly, students who are unclear on the difference between autonomous and induced consumption should watch this video as revision.
Conclusion
Understanding (and memorising) the right rigour puts students on the right footing to score in macroeconomics. Students keen to learn more to stay ahead can register for a trial class here.