Essay was generally fairly easy as you could bring so much in just not enough time to write as there was so much to say
The multiple choice was a bit of a challenge if i'm honest, but overall was not too bad

Hoping for an A!!

(edited 10 years ago)

Reply 9

Ravenblood95

Original post by haseem1

I did context 2, I felt that paper was really easy, but I could've wrote more on the essay with more time

The 8 mark question asked us to compare the balance of payments with the current account.
I said that the lowest balance of payments is -41bn (which is the highest negative number), but is it true that the lower the balance of payments, the higher the negative number? I didn't use the word deficit because I thought it would not be answering the question, and now I terribly regret it.

Also, for my 12 mark question, it asked us to explain two factors, excluding a lower exchange rate, as to why the trade deficit decreased.
Would expenditure reduction and expenditure switching be two valid factors?

thanks for answering!!!

Reply 10

theseeker

Did the first context.

Reply 11

Lucforward

I did context 1, there was so much to write and it was a fairly easy subject. I wrote about expansionary fiscal policy and how that can lead to inflation in the long term. I also went in to detail about the multiplier effect and how that could be a difficulty when trying to control economic growth, I accompanied this with a LRAS curve and how a boost in AD can lead to inflation if not careful. I also wrote about automatic stabilizers and how they need to take these into account when trying to control the economic growth as this can change the rate of economic growth without any intervention. I then drew a economic cycle graph to show the affect of an automatic stabilizer.

I thought that the multiple choice was pretty difficult. On the whole it was a fair test I would say :smile:

Reply 12

will210296

Original post by Ravenblood95

your 12 mark seems fine but the balance of payments was in the greatest deficit in 2005 at 42.7 billion. You may have got that wrong

Reply 13

Ravenblood95

Original post by will210296

your 12 mark seems fine but the balance of payments was in the greatest deficit in 2005 at 42.7 billion. You may have got that wrong

Oh sorry I wasn't being clear. I didn't use the word 'deficit'; I only stated that the balance of payments was 'lowest' in 2005 at 42.7 bn, and said a similar thing for the current account. Do you think it would cost me 4 marks since a high deficit isn't the same as a low balance of payments?

Reply 14

MaxLikesNoodles

easy stuff if youve worked for it! - Context 2 was great, a) imports>exports in simples b) overall BofP better, Current acount worse - and also high and low points c) shift SRAS right by lowering FofP costs thus making UK more competitive, also highering IR to decrease consumer spending and lessen imports d) good for Growth employement and BofP concluded, long term good short term not much impact

Straight forward exam really :smile:

Reply 15

magicalwishes

I did context 2 as I wasn't really sure on the first context definition, silly looking back as it was so easy!

Question a was fine, so pretty sure I got the 5 marks there..
b was abit tricky because there was so much information to compare.

Questio c I found to be tricky but ok

The essay I found abit confusing as I basically wrote too much and went off task half way through

multiple choice was ok, not really any that I didn't have a clue on which was good.

Overall I thought it was ok, had a 2 hour english literature exam right before hand so by the end of the economics essay my hand was about to fall off, also I didn't get a chance to talk to many of my class mates as they was all done an hour and a half before me, but the look on some of their faces when they walked out didn't look happy.. :confused:

(edited 10 years ago)

Reply 16

Yaokin

Hey guys!
I did Context 2.
1 - defined imports, exports, then said that deficit is when the total value of imports exceeds total value of exports in the country.
2 - pointed highest and lowest deficits for current account balance and balance of payments in goods and services. Another point, described how these two change during the time given (BoP goes up, but Current account goes down etc.)
3 - Said fiscal policy i.e. Taxation to increase, and Government spending to decrease.
This will cause AD to shift to the left and therefore cause lower dispensable incomes as businesses do not receive as much profit due to lower consumption, so therefore businesses will lower their costs (wages) --> prices go down.
Therefore consumers will most likely spend money on cheap domestic goods rather than expensive imported goods meaning that the amount of imports will decrease.
Same for Govt Spending.
4 - Defined imports and exports....
- Spoke mainly about the economic cycle and drew a graph.
Then explained what happens to exports and imports during both negative and positive output gaps.
I did not say a word about exchange rates...
In conclusion said that Supply-side policies will achieve a higher effect in the long run if used with demand side policies.

What do you guys reckon I am going to get roughly
So nervous =(

Reply 17

Ravenblood95

Guys SUPER URGENT HERE!!! please tell me whether I went wrong in the context 2 8 mark question.
I didn't use the word 'deficit'; I only stated that the balance of payments was 'lowest' in 2005 at -42.7 bn, and said a similar thing for the current account. Do you think it would cost me 4 marks since a high deficit isn't the same as a low balance of payments?

Reply 18

Skilled

I did context 1, in part c) I talked a paragraph about fiscal, monetary and supply side policy being used for economic growth each then under each policy's paragraph I talked about the difficulties of doing so. Do you think that's right?

Reply 19

JamezD

Thought the exam was good. The multiple choice was basic and the 25 marker gave so many opportunities it was unbelievable :smile:

Ran out of time a bit so could not write a big conclusion but apart from that it was awesome. Anyone know if we can get an unofficial mark scheme for the multiple choice???

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