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

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Original post by sarahharris

And this also contradicts quite a lot of the data for Ireland...

http://www.tradingeconomics.com/ireland/gdp-growth

Oh well...soddit!
Reply 341
I have a question about real and nominal exchange rates. I know that nominal is the external value of sterling, measuring the amount of a currency needed to buy a given amont of another. Also I understand that real exchange rates are adjusted for price volatility, and that they help to analyse price competitiveness in an economy.

However, I'm really stuck with the link between the two. Is it true to say that a deterioration of an exchange rate in real terms is equivalent to a theoretical appreciation of the nominal rate (although obviously it won't change in practice)? Any clarification on this would be really helpful!
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.
(edited 12 years ago)
Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


That'd be great if you could man! Thanks
Reply 344
Original post by ajayhp
isn't it meant to be cost-push inflation, a shift in the AS to the left assuming that AD is nearly at full capacity means workers will want a wage rise, which may be greater than their productivity. Also there was a rise in commodity prices if i can remember, which was caused by emerging markets


thanks for correcting me :smile:
this might sound really stupid, but what's the link between the cost push inflation and higher wages? Is it best to draw a keynesian diagram with the LRAS curve shifting to the left giving another LRAS, or a classical?
Original post by GiddensFTW

Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


why not just post the download link on thread..
Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


Send it me please! :smile:
Reply 347
Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


please, that would be SO helpful :smile:
Original post by sarahharris

Original post by sarahharris
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.


No it doesnt..., look at real gdp rate and compare the percentage change in gdp and it will be around 8.1%, there isn't any mistake in those figures
Reply 349
The tutor2u toolkit says that in 2009-Q1, there were risks of deflation within the euro area.
I know it has something to do with the negative GDP growth, but I don't get the link between the two, because on the keynesian diagram, once AD is not at full capacity the price level stays the same. And AD wasn't at full capacity in the euro area before 2009...
Help?
Reply 350
Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


This would be great :smile: Thanks
Original post by nini27

Original post by nini27
The tutor2u toolkit says that in 2009-Q1, there were risks of deflation within the euro area.
I know it has something to do with the negative GDP growth, but I don't get the link between the two, because on the keynesian diagram, once AD is not at full capacity the price level stays the same. And AD wasn't at full capacity in the euro area before 2009...
Help?


Well it moves from the curvy bit to the flat bit.
Reply 352
Original post by kateibbo
This would be great :smile: Thanks


please
Original post by GiddensFTW
Hey guys. I know it's a bit late but I have a 100 slide powerpoint specifically written for my class for this years case by a well-established examiner. It's really useful, especially for the analysis and last minute revision!

Quote/PM for the download link!

Edit: It's actually excellent, because it tells you how to get the maximum marks with hints and tips.


Send me it plz
Reply 354
Original post by loki276
Well it moves from the curvy bit to the flat bit.


Yes, but weren't the PIIGS already at that stage in 2008?
Can some1 plz tell me what is fixed and freely floating exchange rate and the adv and disadv ? plz
Original post by nini27
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 :smile:


That proper helped
thanks genius :smile:
Original post by loki276

Original post by loki276
No it doesnt..., look at real gdp rate and compare the percentage change in gdp and it will be around 8.1%, there isn't any mistake in those figures


I'm looking at nominal gdp because the % fall is 8.1% nominal and the fall in 2008 (Q4) and 2009 (Q1) alone is more than 8.1%
Original post by nini27

Original post by nini27
Yes, but weren't the PIIGS already at that stage in 2008?


No. All euro economies went through economic problem during 2008 which caused the deflation. Also even if the piigs were already there the deflation was in the whole euro area
(edited 12 years ago)
Original post by sarahharris

Original post by sarahharris
I'm looking at nominal gdp because the % fall is 8.1% nominal and the fall in 2008 (Q4) and 2009 (Q1) alone is more than 8.1%


The percentage fall is real. There's a reason it says real gdp in the title of the table

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