Edexcel AS Economics (New Spec) Unit 2 - 23rd May 2016

what calculations are we going to need to be able to do/ what might they ask?

You're aware that the mark scheme only contains indicative content for the longer mark questions, right?
So I'm pretty sure it would be rewarded, especially since it's related to PED, which would be in the mark scheme.
But thanks anyway.

Anyone got examples of multiplier questions at all? Like made up thanks!

Index numbers, Real GDP value, converting nominal GDP to Real GDP, converting them from numbers to percentage changes… nothing too hard

I think I had the same problem, but the past papers helped a lot with the XED question. It's about finding a good balance.

Is it about benign deflation and how deflation is pretty harmless compared to inflation?

Lets say interest rates fail to stimulate AD.

QE may be introduced instead (or in addition).

OHHHH i get it now thank u !

Index numbers, Real GDP value, converting nominal GDP to Real GDP, converting them from numbers to percentage changes… nothing too hard

Explaining the productivity gap

Do you think we'd be asked to calculate inflation? For example, we're given a basket of goods, their weights and indexes and asked to calculate it?

why does supply side policies cause growth without inflation?

If point 6 confuses you, just ignore it. The first 5 are sufficient

Do you think we'd be asked to calculate inflation? For example, we're given a basket of goods, their weights and indexes and asked to calculate it?

Do you mean output gaps?
Productivity gaps are not in the spec.

They are both very different concepts

It's from a reference book which is based on the new spec, but if it's not on the spec, then it's not on the spec...

Not very much on deflation, (btw what is benign deflation??)

But it's more on oil prices, commodity prices and relative productivity.

Some of the questions include:

Explaining the productivity gap

Calculating percentage change in oil prices

Impact on income distribution when food, oil and gas prices rise

Impact on UK's real output and price level of the trend in oil prices, using an AD/AS diagram

Factors that the Monetary Policy Committee take into account when setting Interest Rates (other than oil and food prices)

And for the 20 marker:

Evaluate the likely effect of the change in productivity on the level of AS and the price level in a country such as the UK

OR

Evaluate the benefits and costs of growth for a country such as the UK


I'm hoping they're right once again, because in the Unit 1 book, they spoke about the Help to Buy scheme, and even their 20 markers had government intervention in the housing market.

If I just sat down and read/memorised everything in the Hodder education reference book, would that be better than doing past year papers? I think my mistake with paper 1 was that I relied too heavily on past year papers. The question on price mechanism shocked me a bit but I looked back and it was in the reference book.

For Unit 1, the practice paper they had at the back of the book was very similar to what actually came out (housing market), so my friend who studied that was able to do very well on the paper.

In the Unit 2 book, there's a lot on oil prices.

To be totally honest, it doesn;t really matter what you do.
Just do something.

If it isn't in your long term memory now, you are unlikely to be able to explain it well tomorrow anyway.