F581/ F582 Economics June 2013

Diagram should have been AD shifting to the left as our exports are more price competitive so there will be less demand thus resulting in net exports, a component of aggregate demand, to decrease reducing inflationary pressure and lowering the rate of inflation for L2

Grade boundaries I'm guessing 47/48 for A

You should have defined INFLATION RATE because the paper already asked you to define inflation. Inflation rate is an sustained/continuous rise in price level EXPRESSED AS A PERCENTAGE. And for the inflation definition I guarantee most people forgot to put over a given time period for the second mark. And you should have defined exchange rate as the price of once currency in terms of another or basket of other currencies.

Grade boundaries I'm guessing 47/48 for A

ps - textbook defintion of ER is 'the price of one currency in terms of another currency'
and IR - 'the percentage increase in the price level over a period of time'

. For the conclusion of the essay I wrote how expansionary/reflationary fiscal policy would be most effective in terms of reducing the inflation rate as well as tackling unemployment.

It probably isn't the most effective policy to reduce inflation, supply side policies are much more useful.

how much did you guys write for the 18 marker? only 2 sides for me

4 sides, but my writing is small

1b threw me at the start as well, you get around it in the end? It basically wanted to know injections where higher than leakages and you could use knowledge and put in about China being a major exporter also - says my teacher.

I skipped pages

For that question, I said consumer expenditure was 35% and investment was 40%, as stated in the case study, therefore injections total to at least 75% of real GDP. So injections were greater than leakages.
Do you think that's right?

What did you skip?

Not in the the exam, but in the revision book. I skipped pages 91-103. I left the revision too late, there was no way I was going to get my head round those diagrams in one night!

Not in the the exam, but in the revision book. I skipped pages 91-103. I left the revision too late, there was no way I was going to get my head round those diagrams in one night!

I think you may get the marks - definitely at least one - but isn't expenditure just part of the circular flow, not an injection? I may be going a bit stupid now though so don't take my word for truth..

Ahhh I see. I'm kinda sad my teacher mislead me to believe fiscal policy or balance of payments deficit would come up wasted a lot of time in those areas.

Yeah man I have a season ticket! It was absolutely incredible!

Thought it went well, hopefully got an A. Only one i was stuck on was 1b. It said that the growth rate was improving (or something like that). I said that meant injections had to be greater than leakages otherwise there would be a negative growth rate. Did i get that completely wrong?

China - 4,800
Japan - 45000

Investment percentage of GDP - 2572 billion