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New Spec AS Level OCR Economics:Macroeconomics - 23rd of May

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Original post by Lukewins1
Unfortunately, you fell into the trap. The answer is £200, it explicitly says they do not change the price.


Thats what i thought, if they didn't change it then why give us the new one, so I just ignored it
Reply 61
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Mia66
6
Original post by Lukewins1
Unfortunately, you fell into the trap. The answer is £200, it explicitly says they do not change the price.

I thought it said ' the dollar price is kept the same'??
Original post by Mia66
I thought it said ' the dollar price is kept the same'??


Spoke to a teacher
well that was annoying, i got 5.3% for germany's unemployment, then for how UK and Germany will be affected, i put large amount of exports go to chinese consumers, so if economic growth slows, less demand for UK and German goods
Also i screwed up the exchange rate question as i accidently shifted S curve, put i labelled the y and x axis correctly and labelled D and S so the examiner may reward 2 marks?
Reply 64
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yelash
10
Original post by jordancohen
Thats what i thought, if they didn't change it then why give us the new one, so I just ignored it


what was the dollar amount to convert? The exchange rate was £1 to $1.20 wasn't it?
(edited 7 years ago)
Original post by Mia66
I thought it said ' the dollar price is kept the same'??


Yea im sure it said the cost of the good ($300) stayed the same but the exchange rate changed, therefore what use to be £200 at (£1=$1.50) is now £250 because the exchange rate changed to £1=$1.2.
Original post by yelash
what was the dollar amount to convert? The exchange rate was £1:colondollar:1.20 wasn't it?


it was $300 dollars
Reply 67
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Mia66
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Original post by G-Unit69
Yea im sure it said the cost of the good ($300) stayed the same but the exchange rate changed, therefore what use to be £200 at (£1=$1.50) is now £250 because the exchange rate changed to £1=$1.2.
exactly!! :smile:
what was the answer to the sluggish econ growth oh china link to uk and germany?
for Q17 20 Marker i talked about use of fiscal policy in cutting taxes to increase disposable income for Firms and consumers, therefore firms are able to use disposable income to grow, buying a new factory etc showing a shift in LRAS to the right which would require labour which would therefore reduce unemployment. also disposable income would mean consumers spend more, giving firms more revenue etc to grow but the extent would be if the economy is running at full capacity, because any rise in AD caused by growing investment and consumption would cause demand pull inflation. and also the Marginal propencity to save for firms and households.
Reply 70
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yelash
10
Original post by G-Unit69
Yea im sure it said the cost of the good ($300) stayed the same but the exchange rate changed, therefore what use to be £200 at (£1=$1.50) is now £250 because the exchange rate changed to £1=$1.2.


I concur. Also because it makes me feel better as I would get an extra mark. :tongue:
(edited 7 years ago)
Reply 71
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yelash
10
Original post by aamir_greenlamp
what was the answer to the sluggish econ growth oh china link to uk and germany?


I made two comparisons. One that Germany traded more, so more reliant, and one that UK got more investment so would be effected. Wouldn't have made a bad 20 marker that tbh
Original post by aamir_greenlamp
what was the answer to the sluggish econ growth oh china link to uk and germany?


possibly fall in UK and German exports, i put rise in unemployment as the rate of demand for UK and german goods slowed down?
what was the two marker before we had to write the ten marker? i can't remember it?
Reply 74
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yelash
10
Original post by G-Unit69
possibly fall in UK and German exports, i put rise in unemployment as the rate of demand for UK and german goods slowed down?


I think it was a compare questions so I made to opposing comparisons
i thought the 10 Marker was also relatively straight forward, required no diagram and just wanted to talk about how a cut in direct tax would increase investment (more disposable income for firms and consumers) and therefore likely to invest to expand there wealth, extent also depended on the Marginal propensity to save, and also opportunity cost in reduction in tax revenue and possibly less investment through government subsidies and grants
Reply 76
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Mia66
6
Original post by aamir_greenlamp
what was the two marker before we had to write the ten marker? i can't remember it?

Why did savings increase in America or something like that...
Original post by yelash
I think it was a compare questions so I made to opposing comparisons

oh i thought it was just a 2 marker stating the effects on the UK and Germany for a fall in economic growth in CHina
Original post by Mia66
Why did savings increase in America or something like that...


because in 2015 the US federal reserve bank increased interest rates, therefore causing more households and firms to save (to gain revenue of interest)
question 18, did anyone talk about the effect of reducing govt spending on unemployment benefits? which creates incentive to look for work and increasing labour force etc

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