AQA A Level Economics Paper 2 (7136/2) -22th May 2023 [Exam Chat]

Original post by Half human

Can an increase in a country's national debt cause a depreciation in its currency? Because foreign investors will be less confident in the country's ability to pay back its debts, causing them to sell the currency.

As far as im aware no> Its more that an increase in national debt increases interest rates because investors demand higher interest rates due to higher risk associated about ability to repay, however, in the context of UK this is highly unlikely because it is a stable govenrment

Reply 22

Original post by pk027

my bad, i thought 2021 didnt have exams ? or did they release paper for teachers to use ?

They had resits

Reply 23

Original post by ^MISSF^

Anyone know the difference between supply side policies and supply side improvements?

Same thing basically - supply side policies are implemented to improve the supply side - so spending on eduction leads to supply side improvements due to an increase in quality of human capital

Reply 24

Original post by lushlife889

Same thing basically - supply side policies are implemented to improve the supply side - so spending on eduction leads to supply side improvements due to an increase in quality of human capital

Great, thankyou :smile:

Reply 25

pk027

12

Original post by Tomorii

Does anyone know what topics came in 2022 economics paper 2?

pretty sure its acc 2022 this time lol
context 1 : foreign direct investment causing more exports and policies for getting FDI to improve living standards
context 2 : reduction in tariffs reduces inflation and if low inflation should be the main objective
essay 1: how changing expenditure can reduce a defict, floating vs free exchange rates
essay 2 : problems w large postive output gap and supply side and interventionist policlies
essay 3 : exports change in value reasons and international trade is good

Reply 26

Half human

10

Original post by lushlife889

As far as im aware no> Its more that an increase in national debt increases interest rates because investors demand higher interest rates due to higher risk associated about ability to repay, however, in the context of UK this is highly unlikely because it is a stable govenrment

Oh ok, if so then what exactly was the cause of the depreciation of the Icelandic Krona between 2008-11? Wasn't it excessive national debt causing a fall in confidence? Correct me if I'm wrong

Reply 27

puveet

Original post by ^MISSF^

Anyone know the difference between supply side policies and supply side improvements?

Don't take my word for it, however I do think that supply-side improvements are just the effects of the supply-side policies, or potentially what firms can do themselves in order to boost their supply of goods and services.

Reply 28

umar_.yahya

1

supply side policies are the use of polices market based or interventionist polices to increase the maximum potential capacity basically economic growth, I believe supply side improvements is just the use of these supply side policies.

Hope this helps!

Original post by ^MISSF^

Anyone know the difference between supply side policies and supply side improvements?

Reply 29

puveet

Anyone know what topics might be coming up for the essay questions?

Reply 30

BeOverAlready

5

when talking about increased importing due to the appreciation of a currency can u reference the purchasing power of the currency increasing against others or is that you can only reference purchasing power when talking about inflation/deflation. Might be a stupid question but dont want to be penalised in the exam.

Reply 31

Original post by Half human

Oh ok, if so then what exactly was the cause of the depreciation of the Icelandic Krona between 2008-11? Wasn't it excessive national debt causing a fall in confidence? Correct me if I'm wrong

I mean yes fair point cause it led to deflation which leads depreciation -

Reply 32

Original post by puveet

Don't take my word for it, however I do think that supply-side improvements are just the effects of the supply-side policies, or potentially what firms can do themselves in order to boost their supply of goods and services.

oh ok that makes sense

Reply 33

Original post by umar_.yahya

supply side policies are the use of polices market based or interventionist polices to increase the maximum potential capacity basically economic growth, I believe supply side improvements is just the use of these supply side policies.

Hope this helps!

Thankyou and yeah that makes sense

Reply 34

Does anyone understand how quantitative easing is used as monetary policy to boost aggregate demand?

Reply 35

Tomorii

1

Thank you so much!! 🫶

Original post by pk027

pretty sure its acc 2022 this time lol
context 1 : foreign direct investment causing more exports and policies for getting FDI to improve living standards
context 2 : reduction in tariffs reduces inflation and if low inflation should be the main objective
essay 1: how changing expenditure can reduce a defict, floating vs free exchange rates
essay 2 : problems w large postive output gap and supply side and interventionist policlies
essay 3 : exports change in value reasons and international trade is good

Reply 36

molly123xx

1

does anyone have any ideas for topics that might come up? my teacher suggested globalisation, and as exchange rates came up last year im thinking they might not this time?

Reply 37