Economics Unit 2 prediction for 17th may 2013 :)

Yep that was the question we were talking about above. You had to give 2 reasons as to why inflation reached high levels in 2011.
Extract 3 mentioned both reasons for this; Increased VAT and Higher Commodity Prices. This would cause cost-push inflation.

For the Queston on 2 reasons why infaltion was above 2% target could you have said nominal wage increase- more consumer confidence (more income?) thus spend more? Demand Pull inflation? + It said about sluggish economy therefore investment would be low- this would push supply in in the long run thus inflation increases? Would that be ok?

I did that two using extract one for wage increase then talked about how it may increase investment. The question didn't say you have to use extract 1 or 3 as the other person who is saying your wrong used.


Posted from TSR Mobile

Examiners don't deduct marks.

There should be marks available for quoting data from the graph, too.


Posted from TSR Mobile

So ill get 0 marks?

I did that two using extract one for wage increase then talked about how it may increase investment. The question didn't say you have to use extract 1 or 3 as the other person who is saying your wrong used.


Posted from TSR Mobile

I'm sorry but why is it wrong??? The question did not say refer to extract 3??? Extract one and 3 kind of clashed as extract one says average wages increase. The question did not specifically say use extract 3 it didn't say anything about using extracts just two possible reason why inflation was high


Posted from TSR Mobile

Phew.. So I wont get 0 on that Q?

No, that was another question. That was B(ii) but I'm referring to A(ii).

You have totally misinterpreted Extract One! The extract said that while wages had risen, inflation had risen by a much greater amount, causing a DECREASE in real wage value in 2011.
In case this was still highly ambiguous, the extracts went even further by describing how there was negative GDP growth during the period and stalling consumer spending, so how you can tie this to demand-pull inflation is beyond bizarre.



You clearly have misread the extracts because they did not "clash". Extract 3 mentioned how consumer spending would rise and the inflationary pressures from the rise in VAT and higher commodity prices would wear away in 2013. However, both extract one and the question referred to 2011.

therefore I think consumer spending and invesment are as correct as your answers and possible a lot of other possible other causes which are not mentioned in the extract ( but are correct ! ) will get marks so I think it's better to stop scaring people off that they will get nothing

Plz can someone remember the list of questions for 2 so I can remember my answers thx

Yeah (positive marking), but they won't be able to give full marks if we gave them a final answer which was wrong.
So:
1 mark for quoting original value
1 mark for quoting the final value
2 marks for working out % change.
1 mark for writing the correct answer (not 2 cuz we then did an unnecessary calculation and gave our final answer from this).
Or am I being too optimistic? (cuz normally they give 2 marks for when you are told to refer to the data)

It is factually incorrect to state that there was demand-pull inflation in 2011. Even though the question did not explicitly state that you should reference the extract, the questions are based around the extracts. And the extracts clearly stated the presence of cost-push inflation while rejecting any presence of demand-pull inflation in 2011. I don't understand how much clearer it can get.

They were basically as follows but with different wording:
A(i). How is CPI calculated? (6 marks)
(ii). Why did inflation rise in 2011? (8 marks)
(iii). What would be the impact on living standards... (12 marks)?
B (i) Why do GDP estimates have to be regularly updated? (4 marks)
(ii) What are the economic consequences of inflation below 2% (8 marks)
(iii) To what extent has the Monetary Policy Committee helped secure economic recovery by the grace of God? (12 marks)

How does a contractionary fiscal policy interfere with attaining macroeconomic objectives? (30 marks)

Hi mate thanks so much for uploading!
What points should be made for bii- the economic consequences of inflation below 2%??

They were basically as follows but with different wording:
A(i). How is CPI calculated? (6 marks)
(ii). Why did inflation rise in 2011? (8 marks)
(iii). What would be the impact on living standards... (12 marks)?
B (i) Why do GDP estimates have to be regularly updated? (4 marks)
(ii) What are the economic consequences of inflation below 2% (8 marks)
(iii) To what extent has the Monetary Policy Committee helped secure economic recovery by the grace of God? (12 marks)

How does a contractionary fiscal policy interfere with attaining macroeconomic objectives? (30 marks)

for aii) could you talk about low interest rates and high consumer confidence

bi) incomes in real terms increases so redistribution of income improves and imports/exports improve more price competitive

Should do.

Examiners are encourage to adopt positive marking, so they credit anything relevant.

That's why you can bullet point stuff if you're running out of time.

ok,bear with me-here goes.

1. i did question 1.For the very first question i defined everything perfectly and showed all my working through the percentage change.However,i did not add the extra 100 on -how many marks will i get?

2.For the 8 marker on the economic situation which can affect the price of oil- i got it the wrong way round and analysed how a recession will cause the price of oil to rise due to suppliers suffering from a lack of productivity and extra costs whereas in a boom the price will decrease -i also applied .

3.For the very first multiple choice question on the unit 1 paper -what was the answer?