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    (Original post by harryleavey)
    What is context 1?
    What did you write for the 20 marker!
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    (Original post by olrosengarten)
    Same I did the second one and used some detail I researched last night! Went well, spent too long on the 15 marker and not sure about the MCQ where it said reasons why the inflation is like it is now in the uk coz I'm not sure what level it actually is but ah well, think it was much MUCH better than micro, thank god...probs still have to resist next year lol
    We can't resit, can we?
    I have such terrible timing. Section A was done in ten mins so I had to go over it so I wasted another ten.
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    (Original post by AsmaaMahamud97)
    We can't resit, can we?
    I have such terrible timing. Section A was done in ten mins so I had to go over it so I wasted another ten.
    Same i finished it so quickly, i spent like 15 minutes on a 6 mark question,i only just managed to finish.
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    THAT WAS GREAT!! I went for 6g spoke about the cut in interest, Gordon Browns cut in VAT, budget deficit, I loved it!!! Section A was great, I couldn't have asked for a better paper, maybe a better extract though
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    Ugh, wasn't a huge fan of this paper, for the ten marker I mostly wrote about a fall in disposable income leading to a fall in money for consumption and savings. And evaluated with the fact that base interest rates may not be constant at 0.5% and could fall even though unlikely, so the Bank of England could introduce QE. Drew a diagram and said it may lead to deflation which could reduce costs for consumers. What did you guys get for the q about the increase in income from the multiplier
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    What was the 6 marker again?
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    I feel like the grade boundaries for this paper will be super high. Usually the Unit 1 boundaries are higher than the Unit 2 ones but that's probs because Unit 2 multiple choice questions make the paper easier.
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    Pretty sure I've failed economics after that. Even if I do well in my other subjects, gonna have to retake the year.
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    (Original post by Parhomus)
    Ugh, wasn't a huge fan of this paper, for the ten marker I mostly wrote about a fall in disposable income leading to a fall in money for consumption and savings. And evaluated with the fact that base interest rates may not be constant at 0.5% and could fall even though unlikely, so the Bank of England could introduce QE. Drew a diagram and said it may lead to deflation which could reduce costs for consumers. What did you guys get for the q about the increase in income from the multiplier
    I guess that's probably the right answer? That's what I wrote too, but I forgot I add quantitative easing
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    (Original post by JMEisjames)
    What was the 6 marker again?
    Asked about two reasons the rate of inflation fell, I wrote about interest rates being low causing an initial spike but due to investment leading to a rise in AS in the long run causing disinflationary pressure
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    what were all the questions for section B does anyone remember any of them?
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    (Original post by Parhomus)
    Asked about two reasons the rate of inflation fell, I wrote about interest rates being low causing an initial spike but due to investment leading to a rise in AS in the long run causing disinflationary pressure
    I thought it was a shift in sras due to lower cost of production i.e fuel prices so reduction in cost push inflation
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    (Original post by bulletman54)
    I thought it was a shift in sras due to lower cost of production i.e fuel prices so reduction in cost push inflation
    Yup!
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    What I wrote for the 15 marker was that the MPC should be worried about deflation. Firstly I said that inflation is at the lowest it has ever been and said that they should look at using the expansionary MPC because the economy is really close to falling into deflation. Evaluated that by saying that interest rates are already low but inflation is still low, meaning that manipulating interest rates to change inflation is uneffective and they should use quantitative easing instead. Also I mentioned that it is a worrying factor because there are no certain tools which the MPC can use to get out of deflation and mentioned that we can become like Japan. Saying that deflation is bad because people are constantly not going to consume because they will know that prices are always falling they'll keep on waiting till it gets low instead of purchasing now, hence a negative impact on AD occurs
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    I didn't think the MPC need to worry about deflation, but about stabilising the economy (in terms of inflation): oil prices falling is an example of benign deflation, Carney expects it to lead to economic growth that'll lead to inflation. Basically it's not attractive for investment. Idk, does that make sense?
    I just gave up on the ten marker; I wasn't thinking straight.
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    Is it just me or did anyone else find the 10 marker on real incomes kinda hard? What did you guys talk about for that question?
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    (Original post by Vilthepill)
    What I wrote for the 15 marker was that the MPC should be worried about deflation. Firstly I said that inflation is at the lowest it has ever been and said that they should look at using the expansionary MPC because the economy is really close to falling into deflation. Evaluated that by saying that interest rates are already low but inflation is still low, meaning that manipulating interest rates to change inflation is uneffective and they should use quantitative easing instead. Also I mentioned that it is a worrying factor because there are no certain tools which the MPC can use to get out of deflation and mentioned that we can become like Japan. Saying that deflation is bad because people are constantly not going to consume because they will know that prices are always falling they'll keep on waiting till it gets low instead of purchasing now, hence a negative impact on AD occurs
    I just discussed the drawbacks of deflation (and how it's not achieving the macroeconomic objectives)

    So i talked about there is less consumption as AD decreases ( i didn't link this one with the objectives)
    I talked about unemployment as firms earn less money and so lay off staff
    I talked about economic decline.
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    (Original post by Parhomus)
    Asked about two reasons the rate of inflation fell, I wrote about interest rates being low causing an initial spike but due to investment leading to a rise in AS in the long run causing disinflationary pressure
    I wrote about firms confidence being low due to the low prices of oil so they had limited expectations and then i talked about the pound appreciating meaning left shift in AD
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    (Original post by bulletman54)
    I thought it was a shift in sras due to lower cost of production i.e fuel prices so reduction in cost push inflation
    Yeah I realised after
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    (Original post by Diastal)
    Is it just me or did anyone else find the 10 marker on real incomes kinda hard? What did you guys talk about for that question?
    It basically asked what will happen of people don't have much money.

    I talked about decreased consumption so AD falls. For point 1.

    I talked about a decrease in living standards for point 2
 
 
 
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