AQA economics unit 2 27/05/2011

will be 60max for an A. 54 minimum.

For those who did it also, for the 12 mark question (07), can full marks be earned if the diagram (and subsquent explanation) invovled a rightward shift in AD due to increased prices of imports? I completely forgot about the obvious fact that higher import prices will shift SRAS to the left, but I do hope that shifting AD is sufficient enough.

I did the exact same thing. I would like to know this too.

but surely to show the importance of exports you need to show how they are increased and the pros and cons for evaluation?

Hiya

Yeah i found the multiple choice quite tricky compared to previous years.

I chose the exports question also. Just wanted to know what else people put into the last question

I started with defining economic performance
went on to talk about how increase exports lead to economic growth, increasing AD blah blah, then saying if the economy reached full capacity, increasing exports would create inflationary pressue.
Talked about China having export-led growth.
Talked about trade off between economic growth and inflation and unemployment.
Went on to say how supply-side policies help improve the performance of the economy, by redcuing corporation tax, technological progress etc etc. Few diagrams there.
briefly covered the balance of payments deficit the UK had been faced with for some time, due to deindustrialisation and moving to the tertiary sextor. and how increasing exports could be beneficial to reduce the deficit.
Think that was all. Sorry thats a lot, Let me know what elso people put in the last part of the question (25marks)

Thanks

I'd personally say no, because the AD that would now be within the economy, would be dampened by the cost-push price inflation due to firms paying higher material costs. And as we all know, higher prices - lower demand.

Ok reading that out doesn't sound that clear to me, so basically, no, because the firms prices will increase due to foreign material price increases, and they will pass this onto the consumer and ultimately the demand will reduce as the price has increased (from the cost-push)

That's just my 2 pence, I didn't do that question though!

What graph did everyone do for part (c) on Supply side policies? (what shift*)

could you read my post please

I thought the multiple choice was good but wasn't overjoyed with the choice of data response. I wanted a monetary and fiscal policies questions but oh well. I did the exports one. What sort of things did you put for the 25 marks question? How many pages did you write for the 25 mark?

You could discuss fiscal and monetary in depth in the D of the supply side policy question lol...

Like with most D part you offer evaluation and hence other alternatives...