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Economics AQA unit 2 tomorrow!

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I'm feeling okay. I'm pretty confident about the multiple choice and everything up to the 25 marker. I just struggle specifically with a suitable structure for the 25 marker.

Any advice would be appreciated.
I also struggle with the 25 marker I have the subject knowledge but struggle to put it out in the essay does anyone know any help with structure?
Reply 3
Do any of you know of topics that could come up on the multiple choice this year but won't be found in past papers? A bit like some of the average costs questions from last week's exam? Also I'm predicting tough essay questions after the easy cigarettes context last week.
Reply 4
Original post by samgraham98
I'm feeling okay. I'm pretty confident about the multiple choice and everything up to the 25 marker. I just struggle specifically with a suitable structure for the 25 marker.

Any advice would be appreciated.


Obviously depends on the question, but you want split into three main sections; Introduction, Analysis and Evaluation. In the Intro you need to define two terms in question and give some context. For Analysis, look to get 3 points and use diagrams where relevant. For evaluation, you can either evaluate every analysis point as you go through or evaluate at the end, but you do need 3 evaluation points.

Hope this helps.
Just two questions that'll help me write my logical chain better:
When economic growth increases it is assumed that consumers get wealthier, why?
And why during a recession do we assume that consumers have less disposable income?
Hopefully I do better in this than in the last economics paper, my problem with the multiple choice is I can normally eliminate it down to 2 options, but then I always get it wrong, in the last two multiple choice papers I have done i've got 3 and 15. I'm pretty confident with the defintion, data question, maths and graph. Regarding the 10 and 25 mark question it all depends on how I perform on the day, I do not have high hopes for my economics grade, but I'm taking it next year as I hate English Language and Literature.
Reply 7
Original post by physicsamor
Just two questions that'll help me write my logical chain better:
When economic growth increases it is assumed that consumers get wealthier, why?
And why during a recession do we assume that consumers have less disposable income?


When the economy is growing there is inflation and the costs of goods is rising, there is also less unemployment which reduces spare capacity in the labour market and pushes up wages so consumers have more money to spend.

During a recession people find themselves unemployed or have their hours cut, leaving them with less disposable income. It can also be assumed that it is harder to obtain credit during a recession.

I always link this to house prices too, if the economy is growing house prices will rise, this gives people with mortgages more equity in their homes and the confidence/ability to borrow and spend more. The opposite is true in a recession
Original post by jn998
When the economy is growing there is inflation and the costs of goods is rising, there is also less unemployment which reduces spare capacity in the labour market and pushes up wages so consumers have more money to spend.

During a recession people find themselves unemployed or have their hours cut, leaving them with less disposable income. It can also be assumed that it is harder to obtain credit during a recession.

I always link this to house prices too, if the economy is growing house prices will rise, this gives people with mortgages more equity in their homes and the confidence/ability to borrow and spend more. The opposite is true in a recession


Okay I understand it better now 😊 with house prices (i hate them) is it the sort of opposite effect when interest rates rise ?
Reply 9
Original post by physicsamor
Okay I understand it better now 😊 with house prices (i hate them) is it the sort of opposite effect when interest rates rise ?


Yes, higher interest rates = lower house prices because it becomes harder for people to afford larger mortgages, decreasing the demand in the housing market and therefore the price.
Original post by jn998
Yes, higher interest rates = lower house prices because it becomes harder for people to afford larger mortgages, decreasing the demand in the housing market and therefore the price.

Thank you for so much your help :h: It's helped my sort out the gaps in my knowledge :biggrin:
Mainly interest rates. If interest rates are high people are likely to save.
Do contractionary fiscal and monetary policies cause deflation due to a decrease of AD?
Original post by SWISH99
Do contractionary fiscal and monetary policies cause deflation due to a decrease of AD?


Contractionary fiscal policys:

Increase in taxes - This leads to a decrease in consumption so a decrease in AD therefore they do not necessarily cause deflation but will decrease the inflation rate.

Decrease government spending - direct link to AD.
Original post by SWISH99
Do contractionary fiscal and monetary policies cause deflation due to a decrease of AD?


Monetary policies:

Increase interest rates - more incentive to save, less consumption.

Decrease in money supply - Banks lend out less so investment and consumption decreases.
Is this thread for old or new spec?
Reply 16
Original post by BirdIsWord
Is this thread for old or new spec?


The new 2016 spec
Reply 17
Ok so in a general AD/AS Diagram.
When PL rises and inflation occurs (be it cost push or demand pull) does this rise in pfice level have a direct correlation to exchange rates? So when PL rises due to Ad shifting right, does this mean exchange rate rises and hence current account deficit worsens or does it literally have no relationship?

Help plz
Original post by boinz
Ok so in a general AD/AS Diagram.
When PL rises and inflation occurs (be it cost push or demand pull) does this rise in pfice level have a direct correlation to exchange rates? So when PL rises due to Ad shifting right, does this mean exchange rate rises and hence current account deficit worsens or does it literally have no relationship?

Help plz


If its high inflation relative to main trading partners, then yes thats effectively appreciation of domestic currency.

When its lower inflation relative to trading partners, thats effectively depreciation.
Do we have to know about Price Deflation?

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