The question was about the effects of trade deficit to surplus on the economy. Not describe how the trade deficit became a trade surplus. Did you talk about the effects on unemployment, inflation?

i mentioned cyclical unemployment due to a current account deficit.

also that a deficit may lead to deflation causing more unemployment

Reply 406

GeorgeMacintyre

i basically focused on current account deficits and its costs/benefits and significance, and how to resolve it. is there any chance of getting 5+ marks?

Reply 407

VinayPatel

8

For the calculation question, I worked out the first part to get $756bn but left it at that.
I missed out the next step...

How many mark(s) would I get out of 3?

Reply 408

RazorBlade3000

1

Original post by VinayPatel

For the calculation question, I worked out the first part to get $756bn but left it at that.
I missed out the next step...

How many mark(s) would I get out of 3?

Im dissapointed...

Reply 409

hanley9

12

Original post by VinayPatel

For the essay, I missed out the diagram (A02) but developed many points and evaluated well...how many marks would I lose for not having a diagram?

You can still achieve full marks without a diagram. Its just easier to get full marks with one.

Reply 410

Vivixn

Original post by kingdoo

Technically that is the same policy said twice but used for different purposes. You needed to mention either exchange rates or the money supply.

I had used quantitative easing and interest rate for this 4 marker, I didn't want to risk using interest rates twice, but if the mark scheme is kind enough you'll possibly get the 4 marks

Reply 411

VinayPatel

8

Original post by hanley9

You can still achieve full marks without a diagram. Its just easier to get full marks with one.

Cheers mate. I just thought that my marks would be capped and I wouldn't get more than 8 marks. Thanks for clearing that up.

Reply 412

matthang

Hey guys, basically i mixed up the current balance thing and in the essay i defined it as government budget so things like revenue is less than expenditure something like that, but after the definitions i did mention about the rise of exports will bring up AD and gain GDP and benefits the economy something like that. I also wrote studd about monetary policy and supply side policy. For like the negative side, i wrote something like, if the government is in debt then the surplus would not benefit the economy too much something like that. I have drawn 3 graphs. AS shifting right, AD shifting left and AD shifting right. I know it is totally the wrong essay but i have mentioned about trade deficit and surplus, do i still get marks? i am really worried.

Also for the micro we have taken last week, do i get marks for the whole essay if i messed if i have the MSC and MPC mixed up ?

Please help... and thank you very much

Reply 413

kingdoo

15

Original post by Vivixn

I had used quantitative easing and interest rate for this 4 marker, I didn't want to risk using interest rates twice, but if the mark scheme is kind enough you'll possibly get the 4 marks

I said they could raise the rate of interest which would increase saving and decrease borrowing as it is more expensive. Decreasing AD and inflation.

I put if they were to raise the exchange rate then this would decrease exports and increase imports. Decreasing AD and therefore inflation

(edited 9 years ago)

Reply 414

TheVIllageGeek

1

Original post by kingdoo

I said they could raise the rate of interest which would increase saving and decrease borrowing as it is more expensive. Decreasing AD and inflation.

I put if they were to raise the exchange rate then this would decrease exports and increase imports. Decreasing AD and therefore inflation

Why did you specifically talk about inflation given that it was equilibrium?

Reply 415

kingdoo

15

Original post by TheVIllageGeek

Why did you specifically talk about inflation given that it was equilibrium?

Sorry no I didn't I forgot which question no I just said it reduces AD

Reply 416

TheVIllageGeek

1

Guys, would I lose a mark for 2b if i merely said a fall in exchange rate rather than devaluing the exchange rate?

Reply 417

Vivixn

For the Essay, long story short:

Benefits
- A trade surplus is when exports exceed imports, (X-M)^
- It's a componant of AD, net exports ^ therefore AD^
- Creates growth and Reduces Cyclical Unemployment

- It is also a massive injection into the circular of flow
- Explained - one's expenditure is another's income etc.
- Positive multiplier effect may occur

Costs
- Inequality of wealth increases
- Inflation occurs, which ^ price of exports again therefore has no long term affect

Judgement
- Depends where the economy is operating at.
- What type of policy the economy will use - Interest or Supply

Opinion
Trade surplus is good but will be good to use supply policy to address the increase in inflation

If you reckon some are my points are wrong, please tell me :smile:

and if you had written different things, please do share!

Reply 418

matthang

Original post by Vivixn

For the Essay, long story short:

Benefits
- A trade surplus is when exports exceed imports, (X-M)^
- It's a componant of AD, net exports ^ therefore AD^
- Creates growth and Reduces Cyclical Unemployment

- It is also a massive injection into the circular of flow
- Explained - one's expenditure is another's income etc.
- Positive multiplier effect may occur

Costs
- Inequality of wealth increases
- Inflation occurs, which ^ price of exports again therefore has no long term affect

Judgement
- Depends where the economy is operating at.
- What type of policy the economy will use - Interest or Supply

Opinion
Trade surplus is good but will be good to use supply policy to address the increase in inflation

If you reckon some are my points are wrong, please tell me :smile:

and if you had written different things, please do share!

i basically wrote the same benefits for my essay but the definitions part was all wrong .. do i still get marks

Reply 419

May-o2q

14

Original post by Vivixn

For the Essay, long story short:

Benefits
- A trade surplus is when exports exceed imports, (X-M)^
- It's a componant of AD, net exports ^ therefore AD^
- Creates growth and Reduces Cyclical Unemployment

- It is also a massive injection into the circular of flow
- Explained - one's expenditure is another's income etc.
- Positive multiplier effect may occur

Costs
- Inequality of wealth increases
- Inflation occurs, which ^ price of exports again therefore has no long term affect

Judgement
- Depends where the economy is operating at.
- What type of policy the economy will use - Interest or Supply

Opinion
Trade surplus is good but will be good to use supply policy to address the increase in inflation

If you reckon some are my points are wrong, please tell me :smile:

and if you had written different things, please do share!