Please be aware of the following changes to this topic in the new syllabus, especially when using or referring to resource for the previous course, such as past exam papers.

• Topic 4.1 in the previous syllabus ("The role of government") has been removed from the new syllabus. This means the previous learning outcome "the role of government (locally, nationally, and internationally)" is not in the new syllabus.
• Topic 4.1 is renamed as "Government macroeconomic intervention" (which was formerly called "The macroeconomic aims of government" in Topic 4.2 of the previous syllabus).
• There are now six macroeconomic aims in Topic 4.1.1, with "environmental sustainability" added to the syllabus. This includes "economic growth and environmental sustainability" as a possible conflict between two of the government's macroeconomic aims (this replaces "economic growth versus balance of payments stability" in the previous syllabus). This is a much-needed addition to the syllabus. As famously stated about climate change by Ban Ki-moon, former UN Secretary-General, "we have only one planet... we don’t have plan B because there is no planet B."
• Topic 4.2.1 (Government budget) - Definitions of both government budget deficit and government budget surplus have been added to the syllabus.
• Topic 4.2.1 (Government budget) - This section of the new syllabus also now requires students to calculate the size of a government budget (deficit/surplus).
• Topic 4.2.2 (Reasons for government spending) - The reasons for and effects of government spending are in this section of the new syllabus (previously, the syllabus only covered the reasons for government spending).
• Topic 4.2.3 (Taxation) - The (six) reasons for taxation are now explicitly stated in the syllabus: (i) raising revenue, (ii) discouraging consumption of demerit goods, (iii) reducing imports, (iv) redistributing income, (v) influencing total demand, and (vi) encouraging environmental sustainability. The legacy Topic 4.3.2 was vague on the reasons for government spending: “Taxation as the main source of government revenue and the reasons for levying taxation.”
• Topic 4.3.5 of the old syllabus (The principles of taxation) has been removed. This means there is no need to teach the qualities of a good tax.
• Topic 4.4.2 (Supply-side policy measures) now includes “infrastructure spending” - there is no reference to infrastructure or infrastructure spending in the legacy syllabus.
• Topic 4.5.2 (Measurement of economic growth) - GDP per head (capita) has been removed as a measurement of economic growth (as appeared in legacy Topic 4.6.2). Only real gross domestic product (GDP) needs to be taught in the new course. However, note that “real Gross Domestic Product (GDP) per head” remains in Unit 5.1.1 (Indicators of living standards).
• Unit 4.5.3 (Causes and consequences of economic growth) - The new guide has removed references to the PPC as well as “changes in investment, technology”. The table below highlights the differences:

Table 4 - Comparing learning outcomes for the causes of economic growth

• In addition, for Topic 4.5.3 (Consequences of economic growth), the wording has been simplified from "The costs and benefits of economic growth in the context of different economies." (legacy Topic 4.6.5) to “advantages and disadvantages of economic growth”.
• Topic 4.5.4 (Causes and consequences of recession) - The following changes have been made:

1. The definition of recession is now explicitly in the syllabus (the previous syllabus referred to the “meaning of recession” in legacy Topic 4.6.3).
2. The causes of recession are now stated clearly as: (i) a decrease in total demand, (ii) a decrease in the quantity of
   resources, and (iii) a decrease in the quality of resources. The legacy syllabus only stated “The causes of recession”.
3. The consequences of recession are now stated clearly for different stakeholders: (i) consumers, (ii) workers, (iii) producers/firms, and (iv) the government. The legacy syllabus only stated “The consequences of recession”.
4. The learning outcome “how a recession moves the economy within its PPC” has been removed from the new syllabus.

• Topic 4.6.2 (Measurement of unemployment) - The claimant count as a measurement of unemployment (legacy Topic 4.7.3) has been removed. Only the labour force survey is now taught in Topic 4.6.2 (Measurement of unemployment).
• Topic 4.6.3 (Causes/types of unemployment) - Seasonal unemployment has been added as a fourth type of unemployment. This is in addition to (i) frictional unemployment, (ii) structural unemployment, and (iii) cyclical unemployment.

Examples of markets that experience seasonal unemployment include retail, tourism, agriculture, and hospitality

• Changing patterns and level of employment (legacy Topic 4.7.2) has been removed.
• Topic 4.7 is renamed and simplied as "Inflation". It was previously called "Inflation and deflation". Deflation is no longer covered beyond the definition, i.e., there is no need to teach the causes and consequences of deflation or the government policies used to tackle deflation (legacy Topics 4.8.2 to 4.8.5).