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Revision/Discussion Thread Edexcel Economics Unit 2 Friday 25th of May 2012

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Reply 100

YingYang

Original post by nakz_

anyone have january 2012 QP for unit 2 ?

http://www.thestudentroom.co.uk/attachment.php?attachmentid=148772&d=1337266529

Reply 101

nakz_

Original post by YingYang

http://www.thestudentroom.co.uk/attachment.php?attachmentid=148772&d=1337266529

i need edexcel not AQA

Reply 102

dan94adibi

Predictions on 30 mark question?
I think something about budget might come up. Obviously not the George Osborne budget since the exam is written way before.

Reply 103

YingYang

Original post by nakz_

i need edexcel not AQA

ah my bad

Reply 104

nakz_

Original post by YingYang

ah my bad

no worries, gave u a positive for wanting to help anyway :smile:

Reply 105

ryanboi

Original post by nakz_

anyone have january 2012 QP for unit 2 ?

Here you go :smile:

6EC02_01_que_20120307.pdf137.1KB

6EC02_01_msc_20120307.pdf130.6KB

Reply 106

nakz_

Original post by ryanboi

Here you go :smile:

brilliant, cheers buddy, will give u a positive when my limit gets reset :biggrin:

Reply 107

egg123

Will any valid argument get marks, even if its not on mark scheme? for any question.

Reply 108

Warfare

Can someone make a short list of common evaluation points?
I came up with
-C is 66% of AD,( AD related questions )
-Multiplier Effect
-Conflicts with other policies(if this actually works)

Reply 109

baggyyo

Original post by Warfare

Can someone make a short list of common evaluation points?
I came up with
-C is 66% of AD,( AD related questions )
-Multiplier Effect
-Conflicts with other policies(if this actually works)

-Time lag (for the effect of government spending and investment)
-Magnitude (though not as useful...)
-Value of marginal propensity to consume(mpc) (for multiplier: the larger the mpc the larger the multiplier)
-some depend on the question and your answer.

Reply 110

baggyyo

Original post by egg123

Will any valid argument get marks, even if its not on mark scheme? for any question.

Yes I think they would because the mark schemes say sometimes that they are not an exhaustive account.

Reply 111

ThatRandomGuy

Would governments providing subsidies to firms so they can buy better capital count as a supply side policy? Or is that more fiscal?

Reply 112

Tsunami2011

Original post by ThatRandomGuy

Would governments providing subsidies to firms so they can buy better capital count as a supply side policy? Or is that more fiscal?

It is a supply side policy, but is also a fiscal policy the two interlink. Providing subsides will raise AD in the short run (Government Spending + Investment), and increase the productive capacity in the long run and also shift AS to the right.

Reply 113

egg123

how do you evaluate elasticiy of AD?

Reply 114

QwertyG

I really cba doing anything today why cant the economics exam be after the half term .....

Reply 115

smatts

Original post by shaminn

Can someone help me evaluate the concept of the Phillips Curve?

This was posted from The Student Room's iPhone/iPad App

Basically, inflation is inversely proportional to unemployment. In times of low unemployment people are more inclined to demand pay rises and wages increase as supply of labour is scarce. The opposite is true in times of high unemployment where firms have the upper hand and people feel less job secure therefore inflation tends to be lower.

Reply 116

studenthelp1

Original post by shaminn

Can someone help me evaluate the concept of the Phillips Curve?

This was posted from The Student Room's iPhone/iPad App

Phillips aimed to look at the trend between unemployment and inflation (although many say that this theory actually went out the window after the 1960's).
He argued that in high inflation times, there will be low unemployment (and vice versa).
Increased spending leads to AD increase. With increased spending, in theory, should come increased employment as the manufacturers have to keep up with demand efficiently. However, intevitably, with increased spending (increased AD) comes an increase in the general price level (inflation).
This is what the theory is based on, however, I would say today it is irrelevant and if you look at recent 'Phillips Curves' they often show no correlation at all.

Reply 117

Jack_Smith

Original post by dan94adibi

Predictions on 30 mark question?
I think something about budget might come up. Obviously not the George Osborne budget since the exam is written way before.