[King of the Jungle]

(Original post by venenecinema)
What I got:
1 C
2) D
3) C
4) B
5) A Wrong
6) C
7) A
8) C
9) C
10) C
11) D
12) A
13) A Wrong
14) C Wrong
15) C Wrong
16) A
17) D
18) C
19) B
20) A Wrong
21) C
22) C
23) B
24) A
25)D

So I got 20, not bad. Hoping for an A overall.

sorry giving you bad new 25 you put D which is wrong it came up in the jan 09 paper and it was a i was so lucky i did the paper one hour before the exam and it was a

[sundeep525]

(Original post by King of the Jungle)
sorry giving you bad new 25 you put D which is wrong it came up in the jan 09 paper and it was a i was so lucky i did the paper one hour before the exam and it was a

Im sorry to give you bad news my friend, but I just checked the exam paper and we are right, it is D and not A. BTW the exam paper is june 09 not jan 09.

[Derrick1509]

Did ANYONE do the unemployment question?

This was posted from The Student Room's Android App on my HTC Desire

[sundeep525]

(Original post by Derrick1509)
Did ANYONE do the unemployment question?

This was posted from The Student Room's Android App on my HTC Desire

Looks like your on your own mate, haha.

I cant believe i dropped stupid marks on the multiple choice, I got all the easy questions wrong

[sundeep525]

Q2) all other things being equal, which one of the following would be the most likely consequence of an appreciation in the external value of the country's currency, an increase in:
a) domestic price level
b) volume of exports
c) employment in the domestic economy
d) volume of imports.

how can the answer be D because it states the 'appreciation in EXTERNAL value' so that kind of put me off to put D as the answer.

Q4) all other things being equal, which one of the following is most likely to move the economy from point Y to point X within its PPF:
a) decrease in inflation
b) decrease in investment
c) reduction in productive capacity
d) reduction in trend rate of growth

The answer cannot be B because a decrease in investment wont put a business within its ppf it will stay on it, because it hasnt lost its productive capacity, so shouldnt the answer be D?

12) deflation is most likely to:
a) cause consumers to delay their purchases
b) lead to rise in interest rates
c) rise in imports
d) reduce the real value of any money that has been lent

please tell me the answers not A because I put A but i changed it to B...

13) movement down the AD form X to Y:
a) as real national output rises, firms can lower their cost due to mass production.
b) as real national output falls, the nominal value of consumption and investment falls
c) [not here]
d) as price level falls, consumers and firms purchase more good.

why isn't the answer A?

15) the answer should be C -200Bn because it states the current account on the balance of payments which is only goods and services whilst capital account is the investment etc. This is stated in my book, so if I get this question wrong its the books fault!

Am i wrong for all of these?

[Ecomax]

Yes

[Ecomax]

12 is A

[tehforum]

I think I got 23/25 on the mcq
5
8
12
and 20+

[lemongrass]

(Original post by sundeep525)
Am i wrong for all of these?

Yes basically.

2) I have no idea what you mean about "external" putting you off.
4) The PPF boundary stayed the same, but the economy's position moved to within it (hence Y to X). This is because AD was decreased (investment went down).
12) Well yeh... it is A.
13) Because the graph movement from X to Y on the AD curve didnt tell you that. That answer is about the AS curve.
15) The book was right... You just forgot to add transfers and income.

[venenecinema]

(Original post by King of the Jungle)
sorry giving you bad new 25 you put D which is wrong it came up in the jan 09 paper and it was a i was so lucky i did the paper one hour before the exam and it was a

LOL if you actually think that. It's long run aggregate supply so why would it be A?

[Kavzaz]

Can anyone tell me how I possibly did for the Data response D question for inflation?

Layout:

Defined Macroeconomic performance
Defined Macroeconomic objectives
Defined interest rates and inflation
Talked about trade offs - Phillips curve
Drew a diagram
Talked about Monetary Policy - 1990s
Made an argument that its dependent on the initial position of the AD curve
Talked about Supply side policies - Monetary doesn't solve cost push
Talked about Fiscal policy - USA being Keynesian and spending/UK being classical and not, creating economic growth and a stable rate of inflation

Conclusion : Referred to argument for the initial position of AD, in the general case Monetary Policy is effective. But in the extreme cases, such as the UK in a recession at the moment, Monetary Policy, Fiscal Policy and Supply side policies are required to create economic growth and a stable rate of inflation.

I also included quotes from the extract.

Thanks in advance.

[sundeep525]

For q4 The answer cannot be B because a decrease in investment wont put a business within its ppf it will stay on it, because it hasnt lost its productive capacity, so shouldnt the answer be D?

[Thedurn15]

(Original post by borealis72)
Unofficial mark scheme, checked by an econ teacher

1. C
2. D
3. C
4. B
5. B
6. C
7. A
8. C
9. C
10. C
11. D
12. A
13. D
14. B
15. D
16. A
17. D
18. C
19. B
20. B
21. C
22. C
23. B
24. A
25. D

Q9. It is not C, it's is A
An increase in innovation and productivity improvements would shift the LRAS curve to the right, not the AD curve!


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

[al_nad12]

Can anyone predict the grade boundaries for ECON2 ?

[Aaron94]

According to both of the unofficial mark schemes the correct answer to Q25 (regarding a rightward AD and LRAS (Classicist curve i.e Vertical) shift to the right on the diagram) is D(improving the flexibility of the labour market). i put A (pursuing an expansionary monetary policy) as this would stimulate consumption and investment in the short run, improvements to capital stock and innovations in the longrun? however this isn't the correct answer according to these.. could anybody explain why as it's in between me getting my full marks on the mcq's. thanks.

[oyeleye]

(Original post by lemongrass)
Full mark scheme

Questions 1-13:

Spoiler:

Show

Q1) which one of the following is most likely to be an example of supply-side policy:
a) reduction in rate of interest to reduce inflation
b) increase in government expenditure on state pensions
c) reduction in company taxes
d) rise in exchange rate to increase export

Q2) all other things being equal, which one of the following would be the most likely consequence of an appreciation in the external value of the country's currency, an increase in:
a) domestic price level
b) volume of exports
c) employment in the domestic economy
d) volume of imports.

Q3) which one of the following is most likely to result in an increase in the long run trend rate of economic growth:
a) increase in AD leading to inflationary pressure
b) sustained increase in the value of the pound on the foreign exchange market
c) reduction in taxes which increases risk taking and incentives to work
d) a sustained reduction in both inflation and labour activity

Q4) all other things being equal, which one of the following is most likely to move the economy from point Y to point X within its PPF:
a) decrease in inflation
b) decrease in investment
c) reduction in productive capacity
d) reduction in trend rate of growth

Q5) which of the following best illustrates the accelerator process:
a) change in one of the components of AD leading to much greater increase in national income
b) increase in national income resulting in proportionately larger rise in investment
c) government subsidies to firms for research and development helping to increase the rate of innovation
d) increase in government spending during a recession helping to stimulate investment.

Q6) the table shows that between 2001 and 2011:
a) real gdp rose by 50%
b) nominal gdp rose by 50%
c) real gdp rose by less than 50%
d) nominal gdp rose by less than 50%

Q7) which one of the following is most likely to result in a rightward shift of the short run AS curve:
a) decrease in wage rates
b) decrease in government spending
c) increase in tax
d) increase in investment expenditure

Q8) cut in income tax rates could be considered:
a) both m + f policy
b) both m + s policy
c) both fiscal and supply side policy
d) neither a m/f policy

Q9) diagram on change resulting from increase in innovation & productivity improvements.
(We don't have this, but the answer was C.)

Q10) rise in level of domestic investment likely result from a rise in:
a) current account deficit
b) interest rates
c) company profits
d) exchange rate

11) fiscal policy involves changes in both:
a) budget balance and the balance of payment
b) interest rates and the supply of credit
c) money supply and the exchange rate
d) government spending & tax

12) deflation is most likely to:
a) cause consumers to delay their purchases
b) lead to rise in interest rates
c) rise in imports
d) reduce the real value of any money that has been lent

13) movement down the AD form X to Y:
a) as real national output rises, firms can lower their cost due to mass production.
b) as real national output falls, the nominal value of consumption and investment falls
c) [not here]
d) as price level falls, consumers and firms purchase more good.

14-16: Attachment 151121
17-18: Attachment 151122
19-22: Attachment 151124
23-24: Attachment 151125
25: Attachment 151146

14. B
15. D
16. A
17. D
18. C
19. B
20. B
21. C
22. C
23. B
24. A
25. D

Context 1: Attachment 151144
Context 2: Attachment 151143

thanks

[ohTS]

(Original post by Aaron94)
According to both of the unofficial mark schemes the correct answer to Q25 (regarding a rightward AD and LRAS (Classicist curve i.e Vertical) shift to the right on the diagram) is D(improving the flexibility of the labour market). i put A (pursuing an expansionary monetary policy) as this would stimulate consumption and investment in the short run, improvements to capital stock and innovations in the longrun? however this isn't the correct answer according to these.. could anybody explain why as it's in between me getting my full marks on the mcq's. thanks.

An expansionary monetary policy would only stimulate consumption and investment in the short run but improving the flexibility of the labour market is a supply-side instrument so increases our productive capacity in the long run as well as the short run.

[ohTS]

(Original post by Derrick1509)
Did ANYONE do the unemployment question?

This was posted from The Student Room's Android App on my HTC Desire

i did

[sundeep525]

(Original post by ohTS)
An expansionary monetary policy would only stimulate consumption and investment in the short run but improving the flexibility of the labour market is a supply-side instrument so increases our productive capacity in the long run as well as the short run.

Hey could you answer this question for me please?

For q4 the answer cannot be B because a decrease in investment wont put a business within its ppf it will stay on it, because it hasnt lost its productive capacity, so shouldnt the answer be D?

Because the ppf is related to supply side such as how much a firm can produce right?

[ohTS]

(Original post by sundeep525)
Hey could you answer this question for me please?

For q4 the answer cannot be B because a decrease in investment wont put a business within its ppf it will stay on it, because it hasnt lost its productive capacity, so shouldnt the answer be D?

Because the ppf is related to supply side such as how much a firm can produce right?

You're right about it not losing productive capacity which is why the curve itself doesn't move, but any point within the curve shows that there is spare capacity which would be the outcome of a decrease in investment. Both C and D would show a movement inwards of the PPF curve so they can't be right, and A doesn't really have a direct effect necessarily so the answer must be B