NZQA registered unit standard
8417 version 5
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Title
Demonstrate knowledge of National Income determination
Level
5
Credits
2
Purpose
People credited with this unit standard are able to: demonstrate
knowledge of the circular flow of income; and analyse the
impact of a change in the components of circular flow of
income on the equilibrium level of National Income (GDP).
Classification
Economic Theory and Practice > Macro Economics
Available grade
Achieved
Explanatory notes
1
Income and expenditure model is given by the condition Y = C + I + G + (X – M), and
is supported by sufficient data for each variable to enable the calculation of
equilibrium level Gross Domestic Product (GDP) (the level such that Income (Y) =
Expenditure (E)).
2
Withdrawals may also be referred to as leakages.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of the circular flow of income.
Evidence requirements
1.1
Components of the circular flow of income are identified and their determinants
analysed.
1.2
The National Income (GDP) is explained using the expenditure equation Y = C
+ I + G + (X – M).
1.3
Components of the circular flow are identified in the national accounts.
Outcome 2
Analyse the impact of a change in the components of circular flow of income on the
equilibrium level of National Income (GDP).
Range
income and expenditure model (graphic or calculation) or circular flow of income
model (injections and withdrawals);
evidence of four changes is required.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8417 version 5
Page 2 of 2
Evidence requirements
2.1
The analysis determines the direction of change in the level of National Income
(GDP).
2.2
The multiplier effect is explained and applied in the analysis.
2.3
The analysis distinguishes between nominal and real National Income (GDP).
Planned review date
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
29 October 1996
31 December 2016
Revision
2
21 July 1999
31 December 2016
Revision
3
14 September 2005
31 December 2016
Review
4
16 October 2009
31 December 2016
Rollover and
Revision
5
16 April 2015
N/A
Consent and Moderation Requirements (CMR) reference
0116
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016