Syllabus: AQA AS Economics
Module: The National Economy in a Global Context
Lesson: 3.2.3 Economic Performance

Introduction

Aligned to the AQA AS Economics specification, Section 3.2.3 focuses on Economic Performance, a cornerstone topic in the study of macroeconomics. Students are expected to develop an informed view of how a nation’s economic performance is measured and analysed, and to appreciate the policy decisions that seek to influence it. This topic supports not only exam success but wider economic literacy—essential for real-world thinking and employability​.

Key Concepts

Students should understand:

• The main objectives of government economic policy: economic growth, low unemployment, price stability, and a satisfactory balance of payments.

• How economic performance is measured: using real GDP growth rates, unemployment data, inflation rates (CPI), and balance of payments figures.

• Trends in the UK economy: particularly over the last 15 years, recognising the influence of historical events where relevant​.

• The limitations of economic data: including issues like time lags, statistical inaccuracies, and differences in international comparisons.

• Short-run and long-run economic growth: and the distinction between actual and potential growth.

• The causes and consequences of unemployment and inflation, including demand-side and supply-side explanations.

Quantitative skills are vital here. Students should confidently interpret data in the form of graphs, index numbers, and basic statistical measures.

Real-World Relevance

The aftermath of COVID-19, Brexit, and the 2008 financial crisis provide rich, tangible case studies. For instance:

• Unemployment Trends: Following COVID-19, the UK furlough scheme prevented a sharp spike in unemployment, illustrating government intervention’s role in smoothing economic cycles.

• Inflation Pressures: Post-pandemic supply chain disruptions and energy price hikes in 2021–22 triggered inflation surges, making CPI and RPI data live classroom examples.

• Economic Growth: The UK’s modest recovery growth post-2020 allows students to critically evaluate whether recovery strategies have achieved real growth or merely rebounded lost output.

How It’s Assessed

Section 3.2.3 content typically appears on Paper 2 of the AQA AS exam. Expect:

• Data response questions: requiring interpretation of graphs, tables, and data sets.

• Short answer questions: focusing on definitions (e.g., GDP, unemployment types) and basic explanations.

• Extended written answers: demanding evaluation, such as the impact of economic growth on income inequality.

• Command words to highlight: Explain, Analyse, Evaluate (for example, “Evaluate the impact of rising inflation on UK economic growth”)​.

Students must apply theory critically, using real-world examples to support arguments.

Enterprise Skills Integration

This topic naturally builds:

• Problem-solving: Analysing policy trade-offs between growth and inflation.

• Decision-making: Evaluating which macroeconomic policies are appropriate under different economic conditions.

• Data literacy: Interpreting economic indicators and assessing their reliability​.

Recommended internal tools: MarketScope AI can be used for students to simulate policy decisions and predict their effects based on real-world data patterns.

Careers Links

Understanding economic performance links directly to careers in:

• Government departments (e.g., HM Treasury, ONS)

• Financial services and economic analysis

• Journalism and public policy

• International development and NGOs

This learning supports Gatsby Benchmarks 4, 5, and 6, ensuring curriculum learning is linked to careers, encounters with employers, and experiences of the workplace​.

Teaching Notes

Key tips:

• Emphasise data interpretation early. Practise using simplified datasets before tackling full exam questions.

• Case studies matter. Build real-world links by using recent news articles or ONS releases.

• Common pitfalls: Students often confuse nominal and real values. Reinforce this distinction through short, practical exercises.

• Extension ideas:

  • Organise a mini ‘Policy Summit’ where students debate whether the Bank of England should raise interest rates.

  • Use Enterprise Skills’ Pitch Deck Analyser to have students ‘sell’ a government economic policy based on evidence and impact assessment.

Teaching this section with live, evolving examples helps demystify the abstract nature of macroeconomics, embedding real-world thinking and boosting exam readiness​​.