F581/ F582 Economics June 2013

Original post by christanmu

Yeah just taking that one on the chin guys! I didn't think - hopefully I can get the marks for my other comments though.

Although knowing those mark schemes it will say no marks for saying a fall in the price level..

Sorry if I came across as sarcastic/rude haha, I was just questioning myself.

Reply 582

tomble123

2

Original post by christanmu

Yeah just taking that one on the chin guys! I didn't think - hopefully I can get the marks for my other comments though.

Although knowing those mark schemes it will say no marks for saying a fall in the price level..

It's small things like that which can mean the difference from an A grade and a B grade! hhahah only joking, you might get a nice examiner

Reply 583

Original post by M.I.A

Another mark lost..... smh lol

What did the question want, I've just got something horribly wrong so I may be wrong..

Nononono it asked who had the greater income or something along those lines? So no the actual income in which case you don't need to put US$ as it is just working out, in which case you get the full marks! Literally I have turned off as soon as I got out of the hall :tongue:

and I have so much history to cover for tomorrow :frown:

Reply 584

For the 18 marker one of the points I made was if an exchange rate appreciation was caused by high interest rates then it costs more for firms to invest therefore could create cost-push inflation?

Reply 585

Original post by tomble123

It's small things like that which can mean the difference from an A grade and a B grade! hhahah only joking, you might get a nice examiner

hahaha

It's just a bit annoying - I don't think I actually put that bit about an overall fall in the price level in? I described the changes and then said it was erratic for sure but after that I cant remember.. (yn)
But on how easy this paper was, it is little mistakes like that that could be the difference between an a and a c or something!

Reply 586

Wasn't Chinas Real GDP per head $4,800 and not $4,200?

Reply 587

Original post by charlottecoleman

For the 18 marker one of the points I made was if an exchange rate appreciation was caused by high interest rates then it costs more for firms to invest therefore could create cost-push inflation?

Good point - counter to that is that the strong currency allows for cheap imports of raw materials - but I think that's a pretty valid point! :smile:

Reply 588

M.I.A

Original post by christanmu

What did the question want, I've just got something horribly wrong so I may be wrong..

Nononono it asked who had the greater income or something along those lines? So no the actual income in which case you don't need to put US$ as it is just working out, in which case you get the full marks! Literally I have turned off as soon as I got out of the hall :tongue:

and I have so much history to cover for tomorrow :frown:

F it, we will know in a couple months time anyways... Good luck in your History exam tmorw!! :smile:

Reply 589

Original post by lufc_dan

Wasn't Chinas Real GDP per head $4,800 and not $4,200?

Note - I definitely got this one right I was going off the comments on here, I spent about 5 minutes deciding how many 0s were needed :colonhash:

Reply 590

Original post by christanmu

Good point - counter to that is that the strong currency allows for cheap imports of raw materials - but I think that's a pretty valid point! :smile:

Yes I also said cheaper raw materials to produce the domestic goods and services could mean passed on cheaper prices to consumers therefore could cause more consumer expenditure increasing AD and could create demand-pull inflation (depending on where country is currently producing)

Reply 591

Original post by christanmu

Note - I definitely got this one right I was going off the comments on here, I spent about 5 minutes deciding how many 0s were needed :colonhash:

I got something in the $4,000 region. I probably put $4,200 then but for some reason got $4,800 stuck in my head.

Reply 592

Anyone for the causes of inflation get:
1. An increase in wages means more disposable income to spend thus increasing consumer expenditure, increasing AD therefore creating demand-pull inflation.
2. An increase in borrowing from bank (can't remember exact term used) would mean cost more to borrow and invest therefore creating cost-push inflation.

Worrying that I got the demand-pull and cost-push the wrong way round?

Reply 593

RoryH

13

Original post by charlottecoleman

Anyone for the causes of inflation get:
1. An increase in wages means more disposable income to spend thus increasing consumer expenditure, increasing AD therefore creating demand-pull inflation.
2. An increase in borrowing from bank (can't remember exact term used) would mean cost more to borrow and invest therefore creating cost-push inflation.

Worrying that I got the demand-pull and cost-push the wrong way round?

I think that it'd be probably best to write those the other way round, although what you've said isn't actually wrong.

The go to thing for cost-push inflation is really wages rising.

Reply 594

Robbie242

Original post by charlottecoleman

Anyone for the causes of inflation get:
1. An increase in wages means more disposable income to spend thus increasing consumer expenditure, increasing AD therefore creating demand-pull inflation.
2. An increase in borrowing from bank (can't remember exact term used) would mean cost more to borrow and invest therefore creating cost-push inflation.

Worrying that I got the demand-pull and cost-push the wrong way round?

I did them the other way around but your part 1. sounds sufficient
2. I wouldn't be certain on but how would borrowing more lead to more costs for borrowing? Borrowing can stimulate investment leading to demand-pull inflation

Reply 595

For the 2 inflation causes I put that

wages were higher than output level - cost push inflation

and banks were lending more money - demand pull

Reply 596

Robbie242

Original post by lufc_dan

For the 2 inflation causes I put that

wages were higher than output level - cost push inflation

and banks were lending more money - demand pull

Same

Reply 597

Original post by Robbie242

I did them the other way around but your part 1. sounds sufficient
2. I wouldn't be certain on but how would borrowing more lead to more costs for borrowing? Borrowing can stimulate investment leading to demand-pull inflation

I thought an increase in borrowing means less money supply which would mean an increase in interest rates therefore cost-push. But I agree too far-fetched and should have been other way round now looking at it! At least will gain two marks for mentioning wage increase and bank lending.

Reply 598