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AQA Econ 2 Multiple choice help.

Hey,

I'd be extremely grateful if anyone could explain these 2 questions to me!
The answers are A for question 5 and D for question 6.
Thank you!

Could also use the thread if anyone else has any other questions before the exam on Friday :smile:

ImageUploadedByStudent Room1368528360.022509.jpgImageUploadedByStudent Room1368528370.988962.jpg
Reply 1
Avatar for Zigggyy.
Zigggyy.
OP
--
(edited 10 years ago)
5A) The balance of payments on the current account is calculated by 'Exports - Imports' where exports and imports are trades in goods and services, and transfers. The net injection of income into the Uk is 16.4+2.2 whilst the net leakage from the Uk economy is 18.4

6D) Again, a net leakage of income means that we have a balance of payments deficit, which reaches its highest value in 1989.
Reply 3
Avatar for Zigggyy.
Zigggyy.
OP
Original post by R.P.Everything.
5A) The balance of payments on the current account is calculated by 'Exports - Imports' where exports and imports are trades in goods and services, and transfers. The net injection of income into the Uk is 16.4+2.2 whilst the net leakage from the Uk economy is 18.4

6D) Again, a net leakage of income means that we have a balance of payments deficit, which reaches its highest value in 1989.


Thank you! :smile:
Reply 4
Avatar for Zigggyy.
Zigggyy.
OP
ImageUploadedByStudent Room1368564903.757408.jpg

If anyone could help with question 5, please :smile:


Posted from TSR Mobile
Original post by Zigggyy.
ImageUploadedByStudent Room1368564903.757408.jpg

If anyone could help with question 5, please :smile:


Posted from TSR Mobile


You can calculate the total increase in inflation by 1.03x1.04x1.02x1.01 which is roughly 1.11 ( so there was an 11% increase in inflation over the period).

You can calculate the total increase in money GDP by 1.06x1.05x1.02x1.01 which is roughly 1.14 (14% increase in money GDP).

1.14/1.11 (to remove inflation) = roughly 1.03, so thats a 3% increase in real GDP
Reply 6
Avatar for Vanderlyle
Vanderlyle
From where are you getting these past papers? Forgive me, but I have rarely seen questions specifically like those from the AQA past paper bank; any question that has ever come up asking you to calculate the balance on the current account has never included anything about invisible trade, and the questions look foreign to me - and I have done all of the AQA past papers multiple times over.

Are these imagined questions, or past papers which I do now know of?
Original post by Vanderlyle
From where are you getting these past papers? Forgive me, but I have rarely seen questions specifically like those from the AQA past paper bank; any question that has ever come up asking you to calculate the balance on the current account has never included anything about invisible trade, and the questions look foreign to me - and I have done all of the AQA past papers multiple times over.

Are these imagined questions, or past papers which I do now know of?


You have done all the new spec papers ...

These questions being posted are from the old spec : which is similar so can be useful.

Good Luck :biggrin:
Reply 8
Avatar for Zigggyy.
Zigggyy.
OP
Original post by R.P.Everything.
You can calculate the total increase in inflation by 1.03x1.04x1.02x1.01 which is roughly 1.11 ( so there was an 11% increase in inflation over the period).

You can calculate the total increase in money GDP by 1.06x1.05x1.02x1.01 which is roughly 1.14 (14% increase in money GDP).

1.14/1.11 (to remove inflation) = roughly 1.03, so thats a 3% increase in real GDP


Thank you! :smile:


Posted from TSR Mobile
Reply 9
Avatar for Zigggyy.
Zigggyy.
OP
Original post by Vanderlyle
From where are you getting these past papers? Forgive me, but I have rarely seen questions specifically like those from the AQA past paper bank; any question that has ever come up asking you to calculate the balance on the current account has never included anything about invisible trade, and the questions look foreign to me - and I have done all of the AQA past papers multiple times over.

Are these imagined questions, or past papers which I do now know of?


These are from the old specification, so June 2001 to June 2008. I just wanted to practice as many questions as possible :smile: There's no harm in it I guess!


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