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OFFICIAL OCR ECONOMICS F582 21st MAY 2014 THREAD**

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Reply 120

leftchr

What are the macroexonomic effects of reducing budget deficit? Some evaluations also?

Reply 121

Enigma Machine

If you haven't already, check out these videos; they're a godsend for OCR Economics.

https://www.youtube.com/channel/UCQbBh9Jn2IjcSPZOiNKJu0g

Should answer most of your questions.

Reply 122

izzyyc

What are the macroexonomic effects of reducing budget deficit? Some evaluations also?

The budget deficit refers to the government spending (for example on the nhs) more than they are receiving in revenue (taxation). These are the components of Fiscal Policy.
The CURRENT ACCOUNT deficit is referring to your exports-imports = net exports.

So to reduce the budget deficit you would decrease government spending and increase taxation. However by doing this it also means that economic growth is reduced and unemployment is increased- as government spending is a component of AD and a injection into National Income whilst taxation is a withdrawal.
Evaluation would include: the size in the change in spending/taxation, other factors eg interest rates, the government objectives eg if they are trying to achieve sustained economic growth then they wouldnt necessarily attempt to reduce the budget deficit but focus on this instead

Reply 123

fluctuationsman

could someone please confirm whether the exam is AM or PM? I can't tell whether I've got a clash or not?

Original post by fluctuationsman

could someone please confirm whether the exam is AM or PM? I can't tell whether I've got a clash or not?

Its PM

Reply 126

mohknows

Does anyone know the calclations for the exam that may come up?

Reply 127

studentwiz

Original post by mohknows

Does anyone know the calclations for the exam that may come up?

someone said the calculations are gcse maths

but one calculation is GDP/population this is the gdp per head

Reply 128

Hitoeveryone

I'm predicting BoP or Unemployment to come up this year. They might say something like 'discuss how supply side policies can improve an economy's trade balance' just guessing like i did for unit 1 which turned out to be exactly like i predicted :tongue:

For the case study i think they might use Japan or India :/

Reply 129

BIGskell

Original post by tomixox

Budget deficit means more money is leaving the economy than is coming in. This may because of a trade deficit. This can be solved by implementing import restrictions such as quotas and tarifs.
You can also reduce a trade deficit by reducing the exchange rate and by using deflationary monetary and fiscal policy to reduce the demand for imports

Im pretty sure this is wrong? A budget deficit arises when government spending exceeds tax revenue

Reply 130

SUNNYOX

Original post by Bude8

If you haven't already, check out these videos; they're a godsend for OCR Economics.

https://www.youtube.com/channel/UCQbBh9Jn2IjcSPZOiNKJu0g

Should answer most of your questions.

Couldn't open the link. Could you tell me what are the names of these videos so I can Search?Thx