NZQA registered unit standard
8421 version 5
Page 1 of 3
Title
Investigate the causes and discuss the consequences of economic
instability
Level
5
Credits
2
Purpose
People credited with this unit standard are able to analyse the
causes of, and outline and discuss the consequences of,
economic instability.
Classification
Economic Theory and Practice > Macro Economics
Available grade
Achieved
Explanatory notes
1
Classical view considers that wages (and prices) are flexible downwards allowing for
labour markets to clear during recessions.
2
Keynesian view considers that prices, and especially wages, are ‘sticky’ (inflexible)
downwards, thus labour markets do not clear, and unemployment persists. During
recessions demand is depressed and firms are reducing production and employment,
and would not employ more workers, even if wages fell.
Outcomes and evidence requirements
Outcome 1
Analyse the causes of economic instability.
Evidence requirements
1.1
The analysis provides the causes of observed periods of economic instability
consistent with the historical facts.
Range
1.2
one of these periods – 1930’s Great Depression, 1970’s OPEC
recession, 1980’s economic restructuring, 2009 recession.
The analysis establishes the role of wage and price flexibility in relation to
economic instability and its correction.
Range
Classical view, Keynesian view.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8421 version 5
Page 2 of 3
Outcome 2
Outline and discuss the consequences of economic instability.
Evidence requirements
2.1
The outline establishes the consequences of economic instability.
consequences include but are not limited to – employment, prices,
wages, investment, interest rates, profits, capacity utilisation.
Range
2.2
The discussion establishes the costs and benefits of economic instability in
terms of economic objectives of government policy.
economic objectives – economic growth, full employment, price
stability, balance of payment equilibrium, equitable distribution of
income, sustainable development, quality of life;
economic instability – recession, inflationary expansion (‘economic
boom’).
Range
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Status information and last date for assessment for superseded versions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.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8421 version 5
Page 3 of 3
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