Question spotting for F585 Economics The Global Economy OCR A level June 2011

People have more money to buy weed lol
urm they can afford basic neccesities.. buh thats like standard of living too

Hi, thanks
But because of the high benefits, leading to high voluntary unemployment, the costs for the firms increase because less people are willing to work. So cost push inflation deteriorates standard of living?

arguably there is social stigma with not working, so people would rather work?

but also depends on in some cases people cannot work due to the labor market not be flexible to changes in demand and therefore voluntary unemployment may not be high

but this is like a counter argument countering another argument lol so i think your point is more valid.

analyse how unit labour costs may rise in the PIIGS ?
any ideas people !

analyse how unit labour costs may rise in the PIIGS ?
any ideas people !

".however the hidden debt became more expensive to finance and countries became less competitive with rising costs. Exchange rates sky rocketed, imports became more expensive, the PIIGS became even more uncompetitive"

Do you mean the exchange rate from other countries? in which case imports to Euro-land would rise in price BUT this would make PIIGS more domestically competitive?

Before 2002, the PIIGS had to keep their relative unit labour costs down to meet the requirements to join the euro - low inflation.
After 2002, once the euro circulated fully, because of price transparency, there was some trade diversion from the PIIGS to other more competitive countries, e.g. Germany and France, so their exports fell, and eventually, they became more and more dependent to imports. AD fell, AS followed, unemployment increased, leading to hysterisis, therefore, the labour force declined. Lower labour force led to rising labour costs.

Hope this helps

also how has trade liberalisation increased the price of goods

Can anyone help me by telling me where the 1.7% fall in GDP from peak to trough for Greece is obtained? (Fig 1.1) Sorry to be a pain but it's really irritating me. Over ten years the nominal value hardly changed?

I was alos getting annoyed by the fact that the peak to trough values didn't add up, so I asked my teacher. He said that it's from data that isn't included in the extract.

Yes that's the logical conclusion but was Greece's GDP really fluctuating so little that the % fall in GDP from peak to trough was 1.7%?

Which quarters, which years, which figures?

Take the extract as gospel.

Erm, I think that he said it was all figures. Can't quite remember...

Have a look here:

http://www.gecodia.com/Greece-GDP-Growth-Rate_a483.html

a fall of only 1.7% ????? Nominal GDP is shown....

59.82....58.49 - and that's just 2008 - 9....choose a different time period and the fluctuation is much bigger

It's strange though...look at:

http://www.gecodia.com/Slovakia-GDP-Growth-Rate_a479.html

Slovakia.

Peak to trough 2008 (Q4) and 2009 (Q1) 15% but the case study = 8.1%

Strange that the tutor2u/APT analyses have not picked this up.