Edexcel A Level Economics B 9EB0 02 - 6 Jun 2022 [Exam Chat]

What did everyone mention in the last twenty marker?

-FDI decreasing due to low business confidence
-exports becoming less valuable
-if the economy keeps going on a negative then tourism might be affected as crime tends to rise with negative economic growth as it might become a LDC (this was waffle)
-MNC's might see some potential as there is a lot of unemployment so wage costs will be lower there, and then have lower production costs
a few more things but I don't know if they all make sense, I didn't draw many graphs either, mainly quoting the extract

Yeah I did quote a lot from the extract. Grade boundary thoughts??

that exam was harder than the average paper 2 in my opinion, so probs lower than 2019, + due to covid there has defo been less revision so that should also lower it

Yeah the grade boundaries will probably be lower than the 2019 year. I do think it was a fair paper tho. Do you know what the grade boundaries were for 2019?

What did everyone mention in the last twenty marker?

that exam was harder than the average paper 2 in my opinion, so probs lower than 2019, + due to covid there has defo been less revision so that should also lower it

What did everyone mention in the last twenty marker?

What did everyone mention in the last twenty marker?

2015/2016 recession saw 7% contraction in GDP
P1: Unemployment (negative impact)
- Low consumption as a result of falling incomes due to recession
- Firms faced falling sales revenues, made workers redundant (esp. in Brazil's service sector, which is 68% of total GDP + v. labour intensive.)
- This explains x% increase in unemployment since 2015
- Stalled Brazil's development
- BUT, Brazil exports services
- Fall in domestic demand could be compensated for by an increase in foreign demand
-Reducing effect on unemployment
P2: Inflation low (positive impact)
- Low growth, low demand-pull inflation, evidenced by Fig 1
- Low inflation may offset effect that unemployment had on falling real incomes
- May launch economy into 'recovery period'
- BUT, only demand pull, not cost push, affected
- Low econ growth may actually increase inflation (cost push), as firms unable to operate on MES, so prices increase
Conclusion: Link between growth/inflation limited by only incremental decreases in inflation when econ. growth falls

So, low econ growth most likely to hurt Brazil's development
Diverse Brazilian economy, leading exporters in certain areas, most likely to be ok in long term, provided a current account surplus can compensate for fall in domesti c consumption

great answer! 18/20 out of 20 for sure,
I mentioned the potential increase in income inequality due to the loss of jobs and inflation, which i demonstrated on a Lorenz curve moving to the right,
and also showing a shrink in Lras due to high unemployment caused by the potential drop in fdi would add inflationary pressure as seen in the extract, which could lead to stagflation, which is an economic disaster which potentially needs lots of fiscal spend to get out of, which Brazil and other developing countries do not have the fiscal dividend for this due to the reduction in tax revenue due to unemployment. Which could lead to an economic crash.
However this i dependent on how low/ negative the growth is, as it is unlikely firms would leave the country if negative growth wasn't sustained or a drastically high percentage...
do you think I'll be credited for the use of a Lorenz curve and stagflation?