Competition - post a photo you've taken of nature >>

AQA Economics UNIT 2 23rd May 2016

Scroll to see replies

Reply 20

Roxyfreeman

Original post by sharmonraja

I also got -41.42

And I put 'increase in budget deficit' but I think the correct answer may be increase in exports

That's good :smile:

I put increase in budget deficit too cus that would mean increase in government spending which increases demand, but I wasn't sure because I thought they both increased demand :/

Reply 21

sharmonraja

Original post by Roxyfreeman

That's good :smile:

I put increase in budget deficit too cus that would mean increase in government spending which increases demand, but I wasn't sure because I thought they both increased demand :/

But an increase in budget deficit could also mean lowered taxes and this doesn't increase AD

Reply 22

Jessicasmithh777

Did anyone do context 1? After they evaluated what would happen for commodity prices did they say how they could fix it with policies?

Reply 23

Accountantlolks

Original post by Rubberbandit

Nooo. Did you get something like 53.9% then?

No😂, how many marks do you think I still got though?

Reply 24

Jibzy16

Original post by sharmonraja

I also got -41.42

And I put 'increase in budget deficit' but I think the correct answer may be increase in exports

I said increasing in budget deficit as well, think it's the right answer, because a budget deficit is where Govt Spending>Taxation, so an increased budget deficit means Govt spending which is part of AD: C+I+G+(X-M) is increased, hence a rightward shift in AD.

With the exports, I know an increase in exports does shift AD right as well, but I was a bit unsure about that because I was thinking that it doesn't talk about net exports (X-M).

Also, for the GDP question what did you guys put for the multi-choice data question, I remember I put no change in GDP/capita.

For the 10 marker, I talked about this:
I defined inflation as "A general sustained increase in the price level/the decrease in purchasing power of money." Then I talked about how a stronger pound means imports are cheaper (AS shifts right) as imports are raw materials, and then AD shifts left as exports are dearer. Then I mentioned that PL drops so inflation decreases. Didn't know what else to write to be honest because it only mentioned about inflation being affected, hopefully I get 8/9 marks for that one!

Reply 25

sharmonraja

Original post by Jessicasmithh777

Did anyone do context 1? After they evaluated what would happen for commodity prices did they say how they could fix it with policies?

Nope I didn't really talk about policies

Reply 26

Jessicasmithh777

I basically did all policies

Reply 27

Jibzy16

Original post by sharmonraja

But an increase in budget deficit could also mean lowered taxes and this doesn't increase AD

Lower taxes DOES increase AD, think about if firms & consumers are taxed less, they have more disposable income (the money that households have available for spending & saving after income tax). If taxes are less, then consumption & investment increases because of consumers/firms having more money to spend.

AD would shift right, both as a result of a cut in tax and an increase in Govt spending.

Reply 28

sharmonraja

Original post by Jibzy16

That makes sense, but then why would the answer not be increase in exports then?

Reply 29

SANTR

Original post by Jibzy16

I remember it being in the -40's, so yes it was probably -41.42, don't know why I said -43.

I just found the change/divided by original * 100.

How many marks would I get penalised for saying -41.1% instead of -41.42?

Reply 30

Jibzy16

Original post by Jessicasmithh777

Did anyone do context 1? After they evaluated what would happen for commodity prices did they say how they could fix it with policies?

Read the first page, and I talk about it.

You could have talked about supply-side policy due to a fall in fuel prices, transportation costs are less/easier to move, improving productivity and shifting LRAS curve outwards (increased output and therefore more incentive to employ more workers), this means that macro-economic objective of low unemployment would be more achievable.

Reply 31

Jibzy16

Original post by SANTR

How many marks would I get penalised for saying -41.1% instead of -41.42?

If you have showed working, then you would only drop 1 mark because it said leave your answer to 2 decimal places, so you'd have got 3/4, provided the working is there, e.g. you showed (change/original) * 100.

Reply 32

Jibzy16

Original post by sharmonraja

That makes sense, but then why would the answer not be increase in exports then?

That's what I was thinking in the exam, was really unsure about it, but then I thought out of all the answers it makes the most sense. Because, for exports it didn't mention it being net exports, because an increase in exports doesn't necessarily mean a shift right in AD, because imports could be increasing too.

I'm not to sure about it, was a weird one, but budget deficit gave a clear, definitive answer out of them all.

Reply 33

Accountantlolks

Original post by Jibzy16

What so answer is one mark? If I got figures wrong but done new / original with wrong figures only 1 mark off? Thanks

Reply 34

Jibzy16

Original post by Accountantlolks

What so answer is one mark? If I got figures wrong but done new / original with wrong figures only 1 mark off? Thanks

A wrong answer with right workings would most likely get you 2 marks, not 3. If you've got the answer and calculations right, but not followed the 2 decimal places part, then you'd get 3 marks because calculations are right which give the majority of the marks.

Reply 35

SANTR

Original post by Jibzy16

I included all the working out luckily, but I don't know where I went wrong.

For the 10 marker, how many marks can you score if you discussed the idea that a stronger pound > export prices rise > exports less competitve > demand for exports falls > E-X component of AD falls > AD decreases > show leftwards shift of AD, fall in PL. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.

(edited 7 years ago)

Reply 36

Accountantlolks

Original post by Jibzy16

Okay thanks. But anyways do bar charts have to be spaced out ?

Reply 37

SANTR

Original post by Accountantlolks

Okay thanks. But anyways do bar charts have to be spaced out ?

Not sure, but didn't seem like there was enough space to "space" it out.

Reply 38

Jibzy16

Original post by SANTR

I included all the working out luckily, but I don't know where I could've gone wrong.

For the 10 marker, how many marks can you score if you discussed the idea that a stronger pound > export prices rise > exports less competitve > demand for exports falls > E-X component of AD falls > AD decreases > show leftwards shift of AD, fall in PL. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.

Did you refer to the data at all, I didn't, however I talked about both AS/AD, so I asked my Economics teacher and she said I'd be in the 8+ mark zone.

You said you wrote a decrease in PL, but did you specifically mention "Inflation" in there. If you defined inflation, it would have given you a better mark especially if you talked about it occurring due to a leftward shift in AD, rightward shift in AS.

I'd say 6 marks for what you wrote.