Economics Unit 2 prediction for 17th may 2013 :)

Can anyone confirm whats the relationship between inflation + exports/imports?
If country X has higher inflation country Y, assuming certius paribus will this mean X will likely to import more to Y ?

Thanks =)

how do you answer the 40 mrk question .URGENT HELP

how do you answer the 40 mrk question .URGENT HELP

Yh either deregulation or privatization.
All I've got in my notes is 1980s Margaret Thatcher, didn't lead to improvements in railways or water supply blah blah blah, and I would something a bit more... evaluative (couldn't think of a better word )

What do you guys think is likely to come up this year? according to recent data and stuff in the papers and the news?

does everyone instantly think of points for the 30 markers. I noticed im bit slow of thinking of the 2nd and 3rd point :/

does everyone instantly think of points for the 30 markers. I noticed im bit slow of thinking of the 2nd and 3rd point :/

Thank you!

the components are the same but what about the way they are measured?
life expectancy - average no. of yrs before death
adult literacy- mean no. of years spent in school/expected no. of years expected in school
is that correct?

Yh either deregulation or privatization.
All I've got in my notes is 1980s Margaret Thatcher, didn't lead to improvements in railways or water supply blah blah blah, and I would something a bit more... evaluative (couldn't think of a better word )

i have 3 points for fiscal policy, 3 for monetary policy, 3 for supply side policy. then just link to question, and question allows for mixture of policies then use strongest points

What would you do in this situation?

Q1
Good 30 marker that you could write alot about however the 8/12/14 markers confuse the hell out of you

Q2
Horrible 30 marker that makes no sense to you however you know you could get high marks in the 8/12/14 markers

What would you pick? The 30 maker is important obviously but if you cant do the rest of the paper what good is it.

What would you do in this situation?

Q1
Good 30 marker that you could write alot about however the 8/12/14 markers confuse the hell out of you

Q2
Horrible 30 marker that makes no sense to you however you know you could get high marks in the 8/12/14 markers

What would you pick? The 30 maker is important obviously but if you cant do the rest of the paper what good is it.

I have 3 points for SSP (tax breaks, education and deregulation) :/

What 3 points do you have with fiscal and monetary policy?

for monetary policy -

interest rates going up = fdi/hot money increases = demand for exchange goes up = SPICED = UK MPI = CA worsens but financial account goes up.

Interest rate going down = more confidence to spend = AD goes up = more jobs = more wages = more spending = inflation = trade off between unemployment and inflation (draw phillips curve) = eval: AS is vertical in LR and stagflation occurs so trade off doesnt exist.


for fiscal policy

tax goes down = more incentive for people to work = eval: income inequality can occur (shown on kuznet curve)

tax goes up = disincentive to work (shown on laffer curve)

I have no points for government policy at the moment :///

I've come across this question from the Jan2012 paper and was wondering if anyone could help me out?

Evaluate the likely impact of higher inflation on 3 macroeconomic objectives.
My first point is that higher inflation could lead to an increase in unemployment because factors of production increase which may mean that firm will have to make some of their employees redundant.
Could I then evaluate this point using the phillips curve and say that according to the phillips curve High inflation=low unemployment? This evaluation point wasn't in the mark scheme....so im not too sure if it's right.

I would think that is right. I used this as an evaluation too and my teacher awarded marks for it

yeah life expectancy has infant mortality rates and education is spot on :P



Majory of firms have already been privatised so this option isn't really available
Also in deregulation firms may take advantage of their 'freedom' by using less efficient technology thus although growth increases so does co2 emission which conflicts with the macroeconomic objective on concern for the environment.

Finally a point for all supply side is that if AD crosses at the elastic part, an outward shift has no effect and the output gap increases further.
(if you draw the diagram you'll get it)

uhm.. don't really know any more!