Edexcel AS Economics Unit 2 (19th May 2015) - Managing the Economy Exam Thread

Hi there was this question on
Describing how fiscal policy and supply sode policy can reeuce unemployment ?
I wrote goverment spending on welfare benefits i. E unemployment benefits can be reduced. But the markscheme said to reduce vat and increase gov spending?
Can u explain why im worng
Thnaks

Your points are not wrong, just not included in the mark scheme. A point which is not included in the mark scheme does not mean that it is wrong.
Personally I would talk about decrease tax -> increase disposable Y -> increase C -> Increase AD -> Increase employment.
Decrease tax on profits -> Increase I -> Increase AD.
Welfare benefit reduction could be one of my point as well, or maybe training and education.

Reply 41

ISandles

OP

3

Original post by Jim Riley

Geoff is running three exam revision webinars on Saturday evening to help students preparing for the Edexcel AS Unit 2 paper on Tuesday afternoon. Geoff teaches the Edexcel board, so these webinars and videos will be particularly relevant.

You can register free for these sessions using these links:

Living Standards and Human Development:
https://attendee.gotowebinar.com/register/2523081584582306818

Supply-Side Policies in the UK
https://attendee.gotowebinar.com/register/5500969190436815362

Aggregate Demand & Supply
https://attendee.gotowebinar.com/register/2783868150504756738

A recording of Geoff's recent webinar on the UK Economy (highly recommended) can be viewed here:
http://beta.tutor2u.net/economics/reference/uk-economy-in-2015-exam-revision-webinar

There are also some other revision videos for AS Macro here:
http://beta.tutor2u.net/economics/reference?searched=y&q=&type=3438&level=2999&board=

Jim

Would just like to bump this so everyone new can see this. The webinar talks are this evening and appear to run from 7pm-10pm which may be late for some but im sure worth it if you need to brush up on your knowledge. Ive been part of his Micro webinars and they really helped me in the paper last week!

All you need to do is sign up using those links, and you'll be notified when Geoff is going live to teach. Easy peasy!

Keep it up everyone and continue asking questions!

Reply 42

rhysd

2

Thanks ISandles for answering my earlier question and i'm afraid i have another one :smile:

So unemployment is defined as a person who is willing and able to work and looking for work but is unable to get a job at the current wage rate, correct?
and voluntary unemployment is supposedly defined as someone who does not wish to work for example, stay at home parents, so then how is it unemployment if they are not willing to work ?

if someone could clear this up for me i'd be very grateful

Reply 43

Immakabiri

exam technique tips? i always do badly in unit 2 compared to unit 1):

Reply 44

falloutboyyy

3

Literally write stuff step by step and that's the transmission mechanism. So eg
If people spent more, means more consumption, consumption is component of Ad, Ad increases, output increases inflation increases etc etc

It is very logical and always before the 30 markers think out your three paragraphs

Keep it structured and don't forget to use definitions and state the obvious. A lot of the time 2 marks go to stating obvious things like for example erm

The govt could raise interest rates to lower Inflation.

Posted from TSR Mobile

1431786150529.jpg39.8KB

Reply 45

falloutboyyy

3

ANYONE-

difference between standard of life and quality of living??? Xx

Posted from TSR Mobile

Reply 46

Hortonn

1

do we literally only need to know an AS and AD diagram like the reivison sheets suggest?

Reply 47

falloutboyyy

3

Well its useful for everything really like output gap and all, idk really like look at all the diagrams you've been taught but generally the 30 marker is to do with an AS AD diagram x

Posted from TSR Mobile

Reply 48

ISandles

OP

3

Original post by Hortonn

do we literally only need to know an AS and AD diagram like the reivison sheets suggest?

There are other diagrams that you should still know that might come in handy for the exam:

-The normal Demand and Supply graph
This may be a macro paper but you will still be awarded marks if a micro graph is drawn but only in the right scenarios. An example for this use would come from a 30 marker looking at policies to reduce unemployment. In this instance you can suggest raising the national minimum wage and show this on a Demand and Supply of Labour graph stating the increase excess supply is even more unemployment.

-Circular Flow of Income diagram
This diagram simply shows the flow of money from firms to households and vice versa along with ways the money is removed from circulation (leakages) and put into the circulation (injections). This can be used generally on a question that asks about the multiplier or flow of income. Look online for a visual representation.

Hope that helps :smile:

Reply 49

Hortonn

1

Original post by ISandles

There are other diagrams that you should still know that might come in handy for the exam:

-The normal Demand and Supply graph
This may be a macro paper but you will still be awarded marks if a micro graph is drawn but only in the right scenarios. An example for this use would come from a 30 marker looking at policies to reduce unemployment. In this instance you can suggest raising the national minimum wage and show this on a Demand and Supply of Labour graph stating the increase excess supply is even more unemployment.

-Circular Flow of Income diagram
This diagram simply shows the flow of money from firms to households and vice versa along with ways the money is removed from circulation (leakages) and put into the circulation (injections). This can be used generally on a question that asks about the multiplier or flow of income. Look online for a visual representation.

Hope that helps :smile:

arent circular flow diagrams quite complex?

also could you please explain the multiplier effect to me please! i just dont get it!

Reply 50

falloutboyyy

3

I haven't needed a circular flow diagram before. Look at Jan 2012 q2 it has a q about circular flow but all u do is explain it. U can draw it but that's a waste of time In my opinion xx

Posted from TSR Mobile

Reply 51

jshep000

15

Someone got a list or picture of all the transmission mechanisms?

Reply 52

fatimazahid

can anyone take a look at this paper i completed? im fed up with marking my own as i find im too harsh or easy on myself?
thank you :smile:

x

Reply 53

ISandles

OP

3

Original post by falloutboyyy

I haven't needed a circular flow diagram before. Look at Jan 2012 q2 it has a q about circular flow but all u do is explain it. U can draw it but that's a waste of time In my opinion xx

Posted from TSR Mobile

lol, you're totally right about it being a waste of time. :tongue:

Id rather just explain it for the two marks from that 2012 paper. It may be a time waster to draw but it's good to know in your mind how it works and what puts money in and takes out of the flow of income.