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Economics Unit 2 Edexcel - Managing the UK economy Tuesday 19th May 2015 (PM)

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Reply 700

jimbo1234567890

Original post by akA95

lol its 100% between macro-economic objectives

june 2009 unit 2 has the exact same question they wouldn't repeat a 30 marker, it was with not between.

Reply 701

Mistarymo

I remember the last question of Q1 was how demand side policies conflict WITH macroeconomic objectives. I remember I looked over it twice during the exam. And plus, I asked two of my classmates who took the same exam, both of them said it was conflicts with macroeconomic objectives.

Reply 702

Praveen101

Original post by member1753327

Actually real output and price level fell

Yes sorry my mistake AD and AS fell, however a fall in AS causes price levels to rise. It makes more sense saying AS falls leading to price levels falling rather than AD leading to a fall in price levels because its a recession and there's a significant amount of spare capacity therefore AD is operating along the perfectly elastic part of the AS curve.

You could evaluate by saying a fall in AD will offset this,

Reply 703

Shayan norz

I aced that 30 marker rude boi

Reply 704

Ladysparkzx

In my 30 mark essay, the question said supply-side policies which I did speak about but I also spoke about monetary and fiscal... Will I get marked down?

Reply 705

jimbo1234567890

Original post by Mistarymo

yh i read with aswell and also june 2009 paper had between and edexcel wouldnt repeat a 30marker

Reply 706

Trungb96

This is a few points I can think of for 30 markers of Q1, all conflicting fiscal/monetary policy. ( I did q2 btw, this is just some thoughts)

1. Against inflation: high demand -> rapid growth -> Shortages of materials and labours -> cost-push inflation.
2. Against employment: new technology -> employees may be fired because they are not needed? also they need to be retrained to use new machineries -> also may get fired?
3. Against BoP: if demand grows too quick domestic producers may not be able to keep up -> need to import more -> BoP deficit.
4. Phillips Curve: relationship between unemployment and inflation, if one were low the other would be high.
5. Income inequalities: as the economy grow, the rich always get rich faster than the rest :wink:

therefore increase in inequalities.

Reply 707

fkaclocksx

for the 30 marker on q2 i shifted AD as well as LRAS, is this okay?

Reply 708

member1753327

Can you use evaluation based on Elasticity of AS curve when AD falls?

Reply 709

Praveen101

Original post by 98panashe

for the 30 marker on q2 i shifted AD as well as LRAS, is this okay?

Yes, they will simply ignore it

Reply 710

Mistarymo

Original post by jimbo1234567890

yh i read with aswell and also june 2009 paper had between and edexcel wouldnt repeat a 30marker

Honestly speaking...whilst I was scrolling through the comments on how some people commented it was conflicts between macroeconomic objectives....it gave me a little heart attack everytime. But after I confirmed with my class mates, I feel a little better :biggrin:

.
Two of my points was about how monetary and fiscal policy conflict with macroeconomic objectives..... But my last point I mentioned how inflation caused as a result could conflict with reduction in standard of living due to reduced purchasing power parity. Would my last point still be valid? :frown:

(edited 8 years ago)

Reply 711

harin136

Guess what rude boi, no one cares :biggrin:

Reply 712

Praveen101

Original post by Mistarymo

.
Two of my points was about how monetary and fiscal policy conflict with macroeconomic objectives..... But my last point I mentioned how inflation caused as a result could conflict with reduction in reduced standard of living due to increased purchasing power parity. Would my last point still be valid? :frown:

When there is inflation the Purchasing power of money FALLS not increases so less goods and services can be bought with the same amount of money

Reply 713

Mistarymo

Original post by Praveen101

When there is inflation the Purchasing power of money FALLS not increases so less goods and services can be bought with the same amount of money

Ah, yup sorry.... had mistypo ^^ ... meant to say what you said....so would it still be valid?

Who else flopped?

OH MY GOSH. I did it as between macroeconomic objectives I'm panicking right now will I get the marks?

Reply 716

Ladysparkzx

Original post by Ladysparkzx

In my 30 mark essay, the question said supply-side policies which I did speak about but I also spoke about monetary and fiscal... Will I get marked down?

Can someone reply??

Reply 717

TeddyBearMike

Original post by Ladysparkzx

Can someone reply??

Well depends, what you talked about since the other two policies can conflict with the supply side policy so really you should only be using them as EVA points.

Reply 718

Ladysparkzx

Original post by TeddyBearMike

Well depends, what you talked about since the other two policies can conflict with the supply side policy so really you should only be using them as EVA points.

Ohhh **** I think I did that (said however blabla) but if I didn't use them as evaluation points and related it to increase in total output will I lose marks?

Reply 719

TeddyBearMike

Original post by Ladysparkzx

Ohhh **** I think I did that (said however blabla) but if I didn't use them as evaluation points and related it to increase in total output will I lose marks?

No you wouldn't lose a mark you just wont get the mark, so hopefully you wrote your supply policies clearly and gave them good EVA points to make up for your mistake. :smile: