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# AQA Economics UNIT 2 23rd May 2016

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1. (Original post by Urbanterwicz)
no u dont need no diagrams for 10 markers lol u've failed
If you have defined both sides and mentioned that AS/AD shift, then that's fine, other than that if you only mentioned AD shifting left and not talked about AS at all by EITHER showing a diagram/explanation then you'll drop marks.

I mentioned diagrams, because I was under the impression that people drew diagrams instead of fully explaining it. I didn't mean that without diagrams you'd lose marks, as long as you explained it clearly and showed BOTH sides of the strengthening of the pound, then you're fine.
2. (Original post by Jibzy16)
If you have defined both sides and mentioned that AS/AD shift, then that's fine, other than that if you only mentioned AD shifting left and not talked about AS at all by EITHER showing a diagram/explanation then you'll drop marks.

I mentioned diagrams, because I was under the impression that people drew diagrams instead of fully explaining it. I didn't mean that without diagrams you'd lose marks, as long as you explained it clearly and showed BOTH sides of the strengthening of the pound, then you're fine.
suck ya mum rudeboi
3. No you won't, you could talk about either AS or AD and still achieve full marks. If they had wanted the effect on bother AD and AS then they would've specified
4. Anyone. Done context 2 & what did you write for 10&25 markers.
5. A good diagram would get you upto 4 marks. Besides that for each chain of reasoning you are awarded 2 marks. Therefore if you linked about 4 points correctly linking to a conclusion of a change in inflation level, you will have no problem scoring high marks
6. (Original post by SANTR)
For the MPC on the question regarding GDP and population, some of the options were
-3% and 8%
-Population was higher than GDP
What did you guys select?
I chose the option that said 'income per head remains the same'
7. what was the equation for Circular flow of income and what did you guys select for the last question with the LRAS curve?
8. (Original post by tamcat)
A good diagram would get you upto 4 marks. Besides that for each chain of reasoning you are awarded 2 marks. Therefore if you linked about 4 points correctly linking to a conclusion of a change in inflation level, you will have no problem scoring high marks

For the 10 marker, how many marks would you say I've scored for discussing the following idea: definition of inflation and then : a stronger pound > export prices rise > exports less competitve > demand for exports falls > E-X component of AD falls > AD decreases > show leftwards shift of AD (in a diagram), fall in PL and referred to the extract. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.
9. (Original post by SANTR)
For the 10 marker, how many marks would you say I've scored for discussing the following idea: definition of inflation and then : a stronger pound > export prices rise > exports less competitve > demand for exports falls > E-X component of AD falls > AD decreases > show leftwards shift of AD (in a diagram), fall in PL and referred to the extract. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.
You do not need to discuss that to get full marks. This guy on the thread saying that you do, doesn't know what he is talking about at all. He is purposely adding stress to you guys because he added both in his answer, and wants to show off. Your answer looks like a top analysis so I wouldn't worry about it
10. I did exactly the same as you, and judging by the standard of mark schemes i would say atleast 7 marks.

Please remember though I am just a student like you, therefore I may not be correct
11. was I the only one who got -58.58% for the calculation (context 1) and for the 10 marker I spoke about decrease in exports and rise in imports cause AD to shift to left and general price levels to fall (as well as a definition and diagram)
12. (Original post by Jibzy16)
If you have defined both sides and mentioned that AS/AD shift, then that's fine, other than that if you only mentioned AD shifting left and not talked about AS at all by EITHER showing a diagram/explanation then you'll drop marks.

I mentioned diagrams, because I was under the impression that people drew diagrams instead of fully explaining it. I didn't mean that without diagrams you'd lose marks, as long as you explained it clearly and showed BOTH sides of the strengthening of the pound, then you're fine.
you don't lose marks fro not drawing diagrams
13. (Original post by tamcat)
No you won't, you could talk about either AS or AD and still achieve full marks. If they had wanted the effect on bother AD and AS then they would've specified
yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as
14. (Original post by Accountantlolks)
Anyone. Done context 2 & what did you write for 10&25 markers.
For the 10 marker:
Immigrants are taxed
They increase AD so decrease unemployment, so more income tax revenue
They also increase SRAS, so more VAT

For the 25 marker:
They increase AD, increasing growth, decreasing unemployment, increasing inflation and therefore worsening the BoP deficit
However, in the long-run, there is no growth since inflation raises wages, increasing CoP and shifting SRAS left. Also, Keynesians would say that if demand is very low, then there will be no inflation

They also increase SRAS and LRAS, increasing growth, decreasing unemployment, decreasing inflation and therefore decreasing the BoP deficit. However Keynesians would argue etc etc.. Also I talked about Marshall Lerner's condition, but idk it that's right

Conclusion blah blah blah
15. (Original post by Accountantlolks)
Anyone. Done context 2 & what did you write for 10&25 markers.
What did everyone else put?
16. (Original post by dayz12)
yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as
how many marks do i lose for bar chart if i drew bars for both food prices and energy when it only asked for food i think?
17. (Original post by sharmonraja)
But an increase in budget deficit could also mean lowered taxes and this doesn't increase AD
It does. Lowered taxes increase AD because it increases disposable income, so households consume more and AD increases.
18. (Original post by maxm99)
It does. Lowered taxes increase AD because it increases disposable income, so households consume more and AD increases.
I think the answer was exports as there was no supply curve and in past papers similar question showing just a fall in demand happened to be due to a fall in exports.
19. (Original post by tamcat)
No you won't, you could talk about either AS or AD and still achieve full marks. If they had wanted the effect on bother AD and AS then they would've specified
Don't think you're understanding me mate.

There's no other way of showing that the decrease in inflation is linked to AD/AS, you have to explain that because of an appreciation in the value of the £, that imports become cheaper; exports become dearer.

Here's something I wrote just now, that you can go off to get decent marks:

Inflation is the general sustainable increase in price level.

The impact of an increase in the value of the pound affects both imports and exports which are part of AD - C+I+G+ [X-M]

As a result of a stronger pound, exports become dearer therefore there is a reduction in exports & less international competitiveness, this means AD would shift left and show a decrease in PL. This decrease in PL means that inflation is decreased, so there would be less inflationary pressure.

Another factor is that as imports (e.g. raw materials) are cheaper, more goods/services can be purchased by firms, hence an increase in AS (rightward shift), this increases output & causes a decrease in PL, again showing a decrease in inflation.

Something along those lines would get you near enough 10 marks, I drew diagrams, but it's not required.
20. (Original post by dayz12)
yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as
Tell me how you'd get 10 marks from talking about AD only? There's one point you can make about it, whereas if you talk about AS, you have an additional diagram/more content to write about.

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