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

30bn was the additional national income

I think the q said by how much would national income increased if £15 billion was injected ,the multiplier was 2 hence national income increases by 30 billion. I think I see why u think it was 15 billion but the initial 15 had nothing to do w the final income it's merely an injection

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Is anyone looking at my concern i really need help

Thanks there was one i was unsure where by they were asking for possible cause of the deterioration in mozambique current acount balance

Haha yes definitely. Ive had three exams so far and this was by far the best as the others were rock solid (theme 1 and c1 maths)

Yeah so am I. However the main problem for me is my terrible handwriting. It starts of ugly and then gets even uglier. So I just hope the examiner can read what I wrote... Otherwise I'm screwed 😅

Yeah this was also a problem for me… I've used a laptop in the past but I get extra time so I just hand write but yes I'm probably gonna stay awake for an hour tonight wondering if the examiner will understood what I wrote 😂 I'm sure they'll try their best and won't just skip it

Hey me too! I loved C1 but I did MEI, I'm guessing you did edexcel?

1) Define national income
GDP plus interest and dividends,

2) Which of these is an injection?
Investment

3) Define circular flow of income?
Model

For the 15 maker I'm not too sure if what I said makes sense. I said that if there is deflation in the UK then consumers are more likely to spend in the domestic economy, as prices will be cheaper, than abroad as imports will seem more expensive. This will increase consumption and shift AD right, so deflation could sort itself out. But then I said that the MPC should be worried as if they are unable to control interest rates, then they are unable to combat deflation as they can't shift AD right this was, as this is one of their main policies. To conclude I said that they should only be worried if they cannot control interest rates.Also for the 6 marker on 2 reasons on controlling inflation or somthing like that I said that they cannot lower interest rates anymore and so cannot control AD and that the costs of production are reduced so SRAS would shift right and deflation would occurDo any of these point make sense??

For the 15 maker I'm not too sure if what I said makes sense. I said that if there is deflation in the UK then consumers are more likely to spend in the domestic economy, as prices will be cheaper, than abroad as imports will seem more expensive. This will increase consumption and shift AD right, so deflation could sort itself out. But then I said that the MPC should be worried as if they are unable to control interest rates, then they are unable to combat deflation as they can't shift AD right this was, as this is one of their main policies. To conclude I said that they should only be worried if they cannot control interest rates.Also for the 6 marker on 2 reasons on controlling inflation or somthing like that I said that they cannot lower interest rates anymore and so cannot control AD and that the costs of production are reduced so SRAS would shift right and deflation would occurDo any of these point make sense??