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F581/ F582 Economics June 2013 Watch

  • View Poll Results: How hard did we find this exam ?
    so hard i felt like crying through the exam
    13
    12.50%
    very difficult , but one or two were alright
    13
    12.50%
    fairly standard
    33
    31.73%
    quite easy , with one or two hard ones
    35
    33.65%
    so easy i felt like dancing throughout the exam
    10
    9.62%

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    Any other calculations that could come up? i always lose marks here
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    (Original post by cheese94)
    Any other calculations that could come up? i always lose marks here
    The net exports one? Unemployment one? I don't know others


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    (Original post by Misha2006)
    D you think anything with the marshal learner condition or the j curve effect will come up?


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    they dont expect you to know this at AS but you can quote it
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    Hi guys! Wonders if we need to do every past paper before the exam on Monday? Cus I'm in a rush now, plan to finish revision by tonight. And I have only one day before exam. Any suggestion what to do? Any answer would be very appreciated. Thanks a lot and good luck to everyone!


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    (Original post by Daniel5027)
    they dont expect you to know this at AS but you can quote it
    Okay that's okay then!!! Thank you!!!


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    (Original post by wolalala)
    oh I see now! for some reason I was intersecting AD not properly on the Vertical part. So as its more harmful at full capacity, would that be an increase in the negative output gap right? Thank you so much for replying, your explanation was very clear!
    Nope, a negative output gap is when the economy is not achieving its full potential, in this case even though AS has fallen, AD would still be on the inelastic part of the new AS curve, but probably just exceeding it in terms of output.

    In the short run, it could be argued that it would cause a positive output gap due to the time lag in AD falling in response to the fall in AS, since consumers would take some time to adjust their spending if their income fell or they became unemployed, etc. It would take a while to work through the economy really.

    I guess in the long run you could argue that it may cause a negative output gap, but only if you specifically stated that.
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    OK for those stressing - here's a nice little Plan for the infamous essay " Discuss whether a current account deficit is always harmful " :

    Introduction - provide a general understanding of the current account , what a deficit means and then answer whether you think its harmful or not ( that last bit ain't necessary though )

    Analysis for why a Current Account deficit IS harmful :

    - loss in international competitveness
    - may cause a reduction of investment into the country
    - linking in with the top point , Aggregate Demand reduces in the economy
    - this leads to a reduction in real national output and an increase in unemployment ( however it does reduce inflation )
    - causes a fall in the exchange rate
    - causes increased debt for the country
    - provides indicator of structural problems in the economy

    LRAS DIAGRAM REPRESENTING REDUCTION IN AGGREGATE DEMAND

    EVALUATION :

    - depends on size of deficit - especially as a percentage of GDP , as if its small its likely to be self-correcting and the country can easily solve it if its a small percentage of GDP
    - depends on duration of deficit , if its been going on for ages it shouldn't cause a lot of problems
    - depends on whether the country is undergoing a massive surplus from the capital and financial accounts which is offsetting the deficit
    - depends on the level of economic activity in the economy at the time as to whether the reduction in AD caused by the deficit will be very harmful or not

    Conclusion :

    mention whether you think its harmful or not in the short run and whether its harmful or not in the long run - cannot really think of what else to put in for the conclusion !

    Hope this helps !
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    (Original post by Fas)
    OK for those stressing - here's a nice little Plan for the infamous essay " Discuss whether a current account deficit is always harmful " :

    Introduction - provide a general understanding of the current account , what a deficit means and then answer whether you think its harmful or not ( that last bit ain't necessary though )

    Analysis for why a Current Account deficit IS harmful :

    - loss in international competitveness
    - may cause a reduction of investment into the country
    - linking in with the top point , Aggregate Demand reduces in the economy
    - this leads to a reduction in real national output and an increase in unemployment ( however it does reduce inflation )
    - causes a fall in the exchange rate
    - causes increased debt for the country
    - provides indicator of structural problems in the economy

    LRAS DIAGRAM REPRESENTING REDUCTION IN AGGREGATE DEMAND

    EVALUATION :

    - depends on size of deficit - especially as a percentage of GDP , as if its small its likely to be self-correcting and the country can easily solve it if its a small percentage of GDP
    - depends on duration of deficit , if its been going on for ages it shouldn't cause a lot of problems
    - depends on whether the country is undergoing a massive surplus from the capital and financial accounts which is offsetting the deficit
    - depends on the level of economic activity in the economy at the time as to whether the reduction in AD caused by the deficit will be very harmful or not

    Conclusion :

    mention whether you think its harmful or not in the short run and whether its harmful or not in the long run - cannot really think of what else to put in for the conclusion !

    Hope this helps !
    OMGGGG THANK YOU SO MUCH!!!


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    Any ideas on the 18 marker tomorrow?
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    So long as it isnt Balance of Payments or Current Accounts I will be fine. Let me pray that it isnt.
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    (Original post by popo)
    So long as it isnt Balance of Payments or Current Accounts I will be fine. Let me pray that it isnt.
    Is it likely??
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    (Original post by popo)
    So long as it isnt Balance of Payments or Current Accounts I will be fine. Let me pray that it isnt.
    I really hope it isn't on that either! Ugh I really don't like balance of payments!


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    (Original post by UnknownGuy)
    Is it likely??
    yeah either that or something based around unemployment
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    (Original post by Fas)
    - loss in international competitveness
    - causes a fall in the exchange rate
    - causes increased debt for the country
    Can you explain why this is bad for the economy?

    And also for a Eval point, could you talk about how it may indicated higher domestic incomes?

    Many Thanks
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    I would prepare myself for any type of question they may throw. As soon as I open that paper, i will look at the last question and if i see the word Balance of Payments I will be encouraged to OWN the questions before that one
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    (Original post by popo)
    I would prepare myself for any type of question they may throw. As soon as I open that paper, i will look at the last question and if i see the word Balance of Payments I will be encouraged to OWN the questions before that one
    haha seems like a good idea

    except I have a feeling that if I don't like the 18 marker, it will just throw me off the whole paper :/
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    (Original post by UnknownGuy)
    Is it likely??
    it might be! they have never asked a essay question on it, only 6/8 markers.
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    Any one wna chat about economics F582. Join this chat room. http://tinychat.com/ef7ue . Chose guest option, tou dont need to sign in with facebook. I want to go over some questions related to current account. IDONT EVEN UNDERSTAND IT .
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    (Original post by KanKan)
    Can you explain why this is bad for the economy?

    And also for a Eval point, could you talk about how it may indicated higher domestic incomes?

    Many Thanks
    the loss in international competitveness - i think its bad because it results in a reduced amount of investment into the country , leading to reduced AD - the effects of which you already know

    the fall in exchange rate means demand for pounds is low - thats the only thing i got for that haha , not sure why that's bad actually as it allows exports to get cheaper

    increased debt - don;t think that really needs explaining

    erm i suppose you could yeah ! that's a pretty decent point actually , but i'd just say that its a sign consumers have more disposable income ( safer to make and not get penalised )
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    JOIN HERE TO DISCUSS ECON http://tinychat.com/ef7ue
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