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

Original post by Tsunami2011

Does anyone know when this exam is? morning or afternoon?

morning

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Reply 141

Original post by PeaceLoveKindness

morning

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Damn

Luckily I have 82 from my attempt in AS, so just trying to boost it.

(edited 11 years ago)

Reply 142

Original post by ThatRandomGuy

The mark scheme says you have to a shift in AS.

Though for AD it would just be a movement along right as price levels rise?

EDIT: It's in the morning. 9AM.

Yeah, that sounds right. You would shift AS to the left, price levels would go up. Talk about cost-push inflation. For many questions you can get 4 marks just for the diagram.

Reply 143

Original post by Tsunami2011

Damn

Luckily I have 82 from my attempt in AS, so just trying to boost it.

Impressive! I hope I get around the same... I feel like I'm ready but I don't want to stop revising just in case! I LOVE economics, I hope to study it in uni :smile:

I just want a really good grade at AS and A2

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Reply 144

Tyles

10

Original post by baggyyo

you editted it already sorry. :s

We were both on the ball :smile:

Reply 145

Can someone explain to me the concept of the positive/negative output gap and what they actually mean?

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Reply 146

RoseIC

quick question, how do you explain purchasing power parity?

Reply 147

egg123

Any tips to getting near full marks on this paper~?

Reply 148

Original post by egg123

Any tips to getting near full marks on this paper~?

Mark scheme. You'll realise what you need to do for every question, i.e the first question is always 'definition and then any credible reference to the data/figures. 12 markers 2 good points + 1 or 2 evaluation ponts. It is also possible to gain full marks on a 8 marker by just drawing a diagram and explaining the transmission mechanisms.

Reply 149

ryanboi

OP

13

Original post by RoseIC

quick question, how do you explain purchasing power parity?

Purchasing Power Parity means that when GDP per capita is converted into US dollars, it is done so at an exchange rate where the same basket of goods can be bought in each country for the same amount. So basically, it takes into account price differences between countries.

Reply 150

Jack_Smith

8

June 11
What relationship might be expected between the average earning growth and the unemployment?

Can some one please answer this question
6 marker =D

Reply 151

Original post by Jack_Smith

June 11
What relationship might be expected between the average earning growth and the unemployment?

Can some one please answer this question
6 marker =D

I remember this from last year, pretty much stopped me getting 90%+.

Can discuss the Phillips Curve and notion that low unemployment comes with high inflation,etc.

(edited 11 years ago)

Reply 152

Skilled

16

Original post by PeaceLoveKindness

Can someone explain to me the concept of the positive/negative output gap and what they actually mean?

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Positive output gap = Actual GDP > Predicted (trend rate) of growth or GDP
in a positive output gap there are inflationary pressures, boost in AD, firms doing well, maybe a surplus.

Negative output gap = Opposite. I.E. Actual GDP < Predicted (trend rate) of growth or GDP

Reply 153

ryanboi

OP

13

Original post by Jack_Smith

June 11
What relationship might be expected between the average earning growth and the unemployment?

Can some one please answer this question
6 marker =D

There's a inverse relationship between average earning growth and the unemployment. As we approach full employment, prices of goods and services start to rise because businesses are paying higher wages to attract workers. Therefore, when average earnings is high, unemployment is low. In addition, as average earnings increases, people start to spend more as they have more disposable income. Therefore, AD increases and this creates derived demand for labour as firms will need to hire more workers to produce more outputs to meet the increased demand.

Reply 154

studenthelp1

Original post by RoseIC

quick question, how do you explain purchasing power parity?

Difference between what can be purchased in one country at a price in comparison to another.
Often referred to as the 'Big Mac Index' or 'Burgernomics' (haha), where they compare prices for Big Macs across many countries.

Reply 155

Jack_Smith

8

Original post by ryanboi

There's a inverse relationship between average earning growth and the unemployment. As we approach full employment, prices of goods and services start to rise because businesses are paying higher wages to attract workers. Therefore, when average earnings is high, unemployment is low. In addition, as average earnings increases, people start to spend more as they have more disposable income. Therefore, AD increases and this creates derived demand for labour as firms will need to hire more workers to produce more outputs to meet the increased demand.

Oh thanks mate! The ms seemed to put me off what i wrote which was similar to yours! Anyways good luck for tomorrow!!

Reply 156

ryanboi

OP

13

Original post by Jack_Smith

Oh thanks mate! The ms seemed to put me off what i wrote which was similar to yours! Anyways good luck for tomorrow!!

Good Luck man :smile:

Reply 157

andrean

hey everybody, does anyone know where can i find the january 2012 paper of unit 2 of edexcel?

Reply 158