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# AQA Economics UNIT 2 23rd May 2016

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1. (Original post by Jibzy16)
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.
read the mark schemes. 4 marks for diagram, up to 2 marks for defining and then a bit of explaining and you would be on for around 9/10 marks. I spoke about both imports and exports and defined and added an sras diagram but you can get full marks without talking about exports or it would have stated otherwise.
2. (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?
wrote no change, as when population goes up 3%, so did gdp, I'm i right?
3. (Original post by sharmonraja)
I chose the option that said 'income per head remains the same'

got the same!
4. (Original post by zainyyyyy)
wrote no change, as when population goes up 3%, so did gdp, I'm i right?
what was the other option?
5. Define inflation (2 marks)
Increase in value of £ decreases UK competitiveness (2 marks)
As a result volume of exports decrease, volume of imports increase(2 marks)
Net X-M is component of AD, a fall in net X-M will shift AD to the left (2 marks)
Diagram, assuming you draw it correctly upto 4 marks, let's say (2 marks) in this example
As a result genera price level decreases from P1 to P2, showing a decrease in inflation level (2marks)
what was the other option?

no clue
7. (Original post by tamcat)
Define inflation (2 marks)
Increase in value of £ decreases UK competitiveness (2 marks)
As a result volume of exports decrease, volume of imports increase(2 marks)
Net X-M is component of AD, a fall in net X-M will shift AD to the left (2 marks)
Diagram, assuming you draw it correctly upto 4 marks, let's say (2 marks) in this example
As a result genera price level decreases from P1 to P2, showing a decrease in inflation level (2marks)
Do you get marks for definitions in the new spec?
8. What were everyones points for Context 1, 25 Marker?
9. 2 questions what happens if draw bar chart using both variables food prices and energy prices and was the calculation question -42. something or did you have to work out the difference in index because indx numbers are percentage increases already
10. (Original post by hbaig27)
What were everyones points for Context 1, 25 Marker?
Intro- defined key terms
Arg 1- the fall in prices is equitable for consumers as lower income households will be able to consume more easily with higher purchasing power (increase AD diagram). Evaluated- also equitable for firms as their cost of production will fall. Though- the wage price spiral could take place and this would undermine this idea and contradicts context- oil prices back on the rise.

Arg 2 with LRAS shifting right diagram- expansive monetary policy alongside fiscal policy may lead to more money being injected into projects such as retraining of workers to solve structural unemployment and this would boost performance of economy. Evaluated- strong as this could make the UK more competitive in the long run and then contradicted saying that index prices show food increasing again so the likelihood of an expansive monetary policy is unlikely as inflation may increase.

Conclusion- compared arguments and spoke about the current state of the economy such as oil prices effecting my conclusion and that the government should place more emphasis on solving the '6%' deficit etc in order to boost the performance of the economy.
11. (Original post by Philjonesss)
2 questions what happens if draw bar chart using both variables food prices and energy prices and was the calculation question -42. something or did you have to work out the difference in index because indx numbers are percentage increases already
you will loose 1 mark at the most i suspect.
12. (Original post by hbaig27)
What were everyones points for Context 1, 25 Marker?

first point - lower price of commodities = supply shift downwards - more factories being made/infrastructure made , evaluation deteriorated environment , less inflation

second point - lower price in commodities = shift right in ad, cheaper goods = more things being brought, too few goods for consumers, demand pull inflation - evaluation = just because price goes down, doesnt mean people will buy ( also mentioned unemployment goes down_

third point = (used extract) cheaper energy and food prices = more disposable income, due to uk's high propensity to import, ad shifts downwards ( right), evaluation most countries has a budget deficit e.g. uk and usa,

conclusion - basically commodities being low on price is good
you will loose 1 mark at the most i suspect.
you lose all marks
14. (Original post by ECONOMICSMK)
you lose all marks
how are you so sure if i got the one i was meant to draw fully correct
you will loose 1 mark at the most i suspect.
not too bad if your correct even 2 out of the 4 is decent for that mistake
16. No it's 3% and 8% one if you worked it out mathematically
17. Damn it I did the calculation question wrong. I just found the difference between the two firgues. Hoping for at least one mark for attempting it.

Did fairly good on the 10 marker and 25 marker.
18. What did people get for the calculation on context 2?
read the mark schemes. 4 marks for diagram, up to 2 marks for defining and then a bit of explaining and you would be on for around 9/10 marks. I spoke about both imports and exports and defined and added an sras diagram but you can get full marks without talking about exports or it would have stated otherwise.
I don't think you get any more marks for definitions in the new spec.
The new spec is marked out of 10 instead of 12 and the mark scheme has changed.
20. My Context 1 25 marker:

-Intro: Define key terms, Introduce objectives etc

-Growth: More spending as prices are lower, Firms have cheaper cost of production so they expand, increases AD (Depends upon multiplier and MPC etc) Diagram aswell

-Inflation: Prices are falling cause low production cost, consumers may be pessimistic and save leading to deflation

-BOP: UK imports less raw materials (it said this in the extract), cheaper prices make the UK more competitive so exports increase, didn't talk about the exchange rate because question didn't ask about it? (Evaluated with elasticity of imports and Marshel-lerner condition which doesn't really work here so might be wrong)

-Conc: Just said why lower prices are good basically

What do you think i got?

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