AQA Economics UNIT 2 23rd May 2016

A good diagram would get you upto 4 marks. Besides that for each chain of reasoning you are awarded 2 marks. Therefore if you linked about 4 points correctly linking to a conclusion of a change in inflation level, you will have no problem scoring high marks

Reply 61

sharmonraja

2

Original post by SANTR

For the MPC on the question regarding GDP and population, some of the options were
-3% and 8%
-Population was higher than GDP
What did you guys select?

I chose the option that said 'income per head remains the same'

Reply 62

SANTR

8

Original post by tamcat

A good diagram would get you upto 4 marks. Besides that for each chain of reasoning you are awarded 2 marks. Therefore if you linked about 4 points correctly linking to a conclusion of a change in inflation level, you will have no problem scoring high marks

For the 10 marker, how many marks would you say I've scored for discussing the following idea: definition of inflation and then : 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 (in a diagram), fall in PL and referred to the extract. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.

Reply 63

Kaasi

12

Original post by SANTR

For the 10 marker, how many marks would you say I've scored for discussing the following idea: definition of inflation and then : 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 (in a diagram), fall in PL and referred to the extract. But I didn't discuss the idea of cheaper imports, supply curve shifting etc.

You do not need to discuss that to get full marks. This guy on the thread saying that you do, doesn't know what he is talking about at all. He is purposely adding stress to you guys because he added both in his answer, and wants to show off. Your answer looks like a top analysis so I wouldn't worry about it :smile:

Reply 64

tamcat

10

I did exactly the same as you, and judging by the standard of mark schemes i would say atleast 7 marks.

Please remember though I am just a student like you, therefore I may not be correct

Reply 65

issystainsby

was I the only one who got -58.58% for the calculation (context 1) and for the 10 marker I spoke about decrease in exports and rise in imports cause AD to shift to left and general price levels to fall (as well as a definition and diagram)

Reply 66

dayz12

Original post by Jibzy16

If you have defined both sides and mentioned that AS/AD shift, then that's fine, other than that if you only mentioned AD shifting left and not talked about AS at all by EITHER showing a diagram/explanation then you'll drop marks.

I mentioned diagrams, because I was under the impression that people drew diagrams instead of fully explaining it. I didn't mean that without diagrams you'd lose marks, as long as you explained it clearly and showed BOTH sides of the strengthening of the pound, then you're fine.

you don't lose marks fro not drawing diagrams

Reply 67

dayz12

Original post by tamcat

No you won't, you could talk about either AS or AD and still achieve full marks. If they had wanted the effect on bother AD and AS then they would've specified

yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as

Reply 68

Rubberbandit

6

Original post by Accountantlolks

Anyone. Done context 2 & what did you write for 10&25 markers.

For the 10 marker:
Immigrants are taxed
They increase AD so decrease unemployment, so more income tax revenue
They also increase SRAS, so more VAT

For the 25 marker:
They increase AD, increasing growth, decreasing unemployment, increasing inflation and therefore worsening the BoP deficit
However, in the long-run, there is no growth since inflation raises wages, increasing CoP and shifting SRAS left. Also, Keynesians would say that if demand is very low, then there will be no inflation

They also increase SRAS and LRAS, increasing growth, decreasing unemployment, decreasing inflation and therefore decreasing the BoP deficit. However Keynesians would argue etc etc.. Also I talked about Marshall Lerner's condition, but idk it that's right

Conclusion blah blah blah

Reply 69

Rubberbandit

6

Original post by Accountantlolks

Anyone. Done context 2 & what did you write for 10&25 markers.

What did everyone else put?

Reply 70

Philjonesss

Original post by dayz12

yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as

how many marks do i lose for bar chart if i drew bars for both food prices and energy when it only asked for food i think?

Reply 71

maxm99

Original post by sharmonraja

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

It does. Lowered taxes increase AD because it increases disposable income, so households consume more and AD increases.

Reply 72

Jibzy16

6

Original post by tamcat

No you won't, you could talk about either AS or AD and still achieve full marks. If they had wanted the effect on bother AD and AS then they would've specified

Don't think you're understanding me mate.

There's no other way of showing that the decrease in inflation is linked to AD/AS, you have to explain that because of an appreciation in the value of the £, that imports become cheaper; exports become dearer.

Here's something I wrote just now, that you can go off to get decent marks:

Inflation is the general sustainable increase in price level.

The impact of an increase in the value of the pound affects both imports and exports which are part of AD - C+I+G+ [X-M]

As a result of a stronger pound, exports become dearer therefore there is a reduction in exports & less international competitiveness, this means AD would shift left and show a decrease in PL. This decrease in PL means that inflation is decreased, so there would be less inflationary pressure.

Another factor is that as imports (e.g. raw materials) are cheaper, more goods/services can be purchased by firms, hence an increase in AS (rightward shift), this increases output & causes a decrease in PL, again showing a decrease in inflation.

Something along those lines would get you near enough 10 marks, I drew diagrams, but it's not required.

Reply 73

Jibzy16

6

Original post by dayz12

yh exactly i only talked about ad and how it caused price to decrease I'm pretty sure there was no need to talk about both ad and as

Tell me how you'd get 10 marks from talking about AD only? There's one point you can make about it, whereas if you talk about AS, you have an additional diagram/more content to write about.

Reply 74

zainyyyyy

14

Original post by SANTR

For the MPC on the question regarding GDP and population, some of the options were
-3% and 8%
-Population was higher than GDP
What did you guys select?

wrote no change, as when population goes up 3%, so did gdp, I'm i right?

Reply 75

zainyyyyy

14

Original post by sharmonraja

I chose the option that said 'income per head remains the same'

got the same!

Reply 76

tamcat

10

Define inflation (2 marks)
Increase in value of £ decreases UK competitiveness (2 marks)
As a result volume of exports decrease, volume of imports increase(2 marks)
Net X-M is component of AD, a fall in net X-M will shift AD to the left (2 marks)
Diagram, assuming you draw it correctly upto 4 marks, let's say (2 marks) in this example
As a result genera price level decreases from P1 to P2, showing a decrease in inflation level (2marks)

no clue

Original post by tamcat

Define inflation (2 marks)
Increase in value of £ decreases UK competitiveness (2 marks)
As a result volume of exports decrease, volume of imports increase(2 marks)
Net X-M is component of AD, a fall in net X-M will shift AD to the left (2 marks)
Diagram, assuming you draw it correctly upto 4 marks, let's say (2 marks) in this example
As a result genera price level decreases from P1 to P2, showing a decrease in inflation level (2marks)