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**********OFFICIAL OCR ECONOMICS F582 21st MAY 2014 THREAD************ Watch

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    (Original post by kingdoo)
    It said for South Korea that consumers spend less of their disposable
    income or something like that so I said this means the multiplier effect is greater in Turkey.

    What did you say for Turkey experiencing rapid economic growth I talked about government spending which has significantly increased output and moreover has been spent on the labour force especially women so therefore the quality of labour has increased increasing investment on workers which increases consumer income as they then have a more disposable income consequently this causes a tripling multiplier effect as government spending investment and consumer expenditure have all increased leading to rapid AD shift to the right and therefore rapid growth.
    Heyy, I'm not so sure about the multiplier effect. They said that South Korea, people spend less of their disposable income, right? So it means that they save more of their income, saving is a leakage in the circular flow of income, thus it means that multiplier effect will be smaller than Turkey ? But why you said it's greater? Or it's me who get it the other way around?

    EDITED: no!!! Ure correct, i thought u said it's greater than Turkey rather than in Turkey. Sorry!!! It's what I wrote too. Phew !


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    (Original post by May-o2q)
    Heyy, I'm not so sure about the multiplier effect. They said that South Korea, people spend less of their disposable income, right? So it means that they save more of their income, saving is a leakage in the circular flow of income, thus it means that multiplier effect will be smaller than Turkey ? But why you said it's greater? Or it's me who get it the other way around?

    EDITED: no!!! Ure correct, i thought u said it's greater than Turkey rather than in Turkey. Sorry!!! It's what I wrote too. Phew !


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    Yeah people said since the GDP is greater in SK that the multiplier should be greater there. But that is not necessarily true because SK may just have been more developed at the time of 2011 and even though it has a greater GDP it can still have just steady economic growth. But yeah from the text I got that the multiplier effect is smaller in SK and greater in Turkey. I think you could have used multiple examples though from either Turkey or SK.
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    (Original post by anorris13)
    I said because consumer expenditure was lower in South Korea than in Turkey, yet South Korea had a higher GDP, indicating a larger multiplier
    That sounds a bit contradictory? I don't think the question asked for what the actual difference would be regarding the multiplier it just wanted a reason for a difference. Wasn't it only 2 marks?
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    (Original post by HMZX)
    Well, It says that the total exports of Sudan were $9800m, and India was 5% of that. Therefore, 9800 x 0.05 = $490m

    The imports were $8000m, and India was 6%. 0.06 x 8000 = $480m

    To work out trade balance is exports - imports so is 490-480 which is a trade surplus of $10m
    u so good at economics brotha!
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    for the three differences between the bric and mist inflation rate, I wrote:
    1) one was higher than the other between most countries
    2) turkey had the highest, south korea had the lowest.
    3) i worked out the average and said one was higher than the other
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    (Original post by RavinderKlair97)
    for the three differences between the bric and mist inflation rate, I wrote:
    1) one was higher than the other between most countries
    2) turkey had the highest, south korea had the lowest.
    3) i worked out the average and said one was higher than the other
    same three marks CHA-CHING
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    (Original post by thunguyen168)
    Lemme give you a hug. I did exactly the same with that multiplier question. Feeling ridiculously stupid now
    What was wrong with picking out that sentence? I think that I did the same thing!
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    (Original post by Ben_S96)
    That sounds a bit contradictory? I don't think the question asked for what the actual difference would be regarding the multiplier it just wanted a reason for a difference. Wasn't it only 2 marks?
    Contradictory? AD=C+I+G+(X-M) and since C (consumption) is generally the largest part of AD, then if consumption is lower in one country than another, yet GDP is higher in that country, the effects of consumption in that country lead to a far greater than proportional change to GDP, indicating a larger multiplier. Does that make more sense?

    EDIT: Found this, the original question: Using information from the case study, explain why Turkey may have a greater multiplier effect than South Korea (2)
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    (Original post by joejoejoejoe)
    Would it be negative because it was a deficit???


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    No it would be a surplus of -68.04bn but a defect of 68.04bn
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    (Original post by anorris13)
    No it would be a surplus of -68.04bn but a defect of 68.04bn
    That doesn't make any sense. Deficit is imported more than exported basically so more money going out of an economy so they are technically losing 68.04bn hence forth the minus


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    (Original post by joejoejoejoe)
    That doesn't make any sense. Deficit is imported more than exported basically so more money going out of an economy so they are technically losing 68.04bn hence forth the minus


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    No, A defecit is positive, imagine it this way. If a car is decelerating, it may have a deceleration of 6, but an acceleration of -6. I don't really know how I can explain it more clearly....
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    (Original post by joejoejoejoe)
    That doesn't make any sense. Deficit is imported more than exported basically so more money going out of an economy so they are technically losing 68.04bn hence forth the minus


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    (Original post by anorris13)
    No, A defecit is positive, imagine it this way. If a car is decelerating, it may have a deceleration of 6, but an acceleration of -6. I don't really know how I can explain it more clearly....

    Guys, the question asked you to calculate the deficit, which meant you didn't really need to put the "-" sign there..
    A deficit is negative, because you are buying more goods and services, rather than selling. So you're selling more pounds, as you're spending more money.
    Hope that helps
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    (Original post by lionelmessi19)
    Guys, the question asked you to calculate the deficit, which meant you didn't really need to put the "-" sign there..
    A deficit is negative, because you are buying more goods and services, rather than selling. So you're selling more pounds, as you're spending more money.
    Hope that helps
    Yeah, but you definitely don't need the negative sign, because a deficit is negative but the value of a deficit is positive. E.g. If you put the negative sign, it is technically a surplus.
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    (Original post by anorris13)
    Yeah, but you definitely don't need the negative sign, because a deficit is negative but the value of a deficit is positive. E.g. If you put the negative sign, it is technically a surplus.
    Ahhh, are you trying to say that a - - = + ??
    I'm sure OCR won't be that harsh..
    I understand what you are trying to say now..
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    (Original post by lionelmessi19)
    Ahhh, are you trying to say that a - - = + ??
    I'm sure OCR won't be that harsh..
    I understand what you are trying to say now..
    Yes, a negative defect is a double negative or a surplus, sorry I was struggling to explain it. I hope not but I have a recollection of losing a mark for doing something like that on a past paper, which was why I was wary this time.
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    How did everyone do??
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    (Original post by tomixox)
    How did everyone do??
    86ums
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    Pretty gutted got 78 UMS in both papers, 80 for an A, probably going to get both remarked
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    88 UMS, pretty pleased considering I thought I'd messed up the essay.
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    92 in macro & 76 in micro
    so shocked as I found that macro 18 marker quite difficult!

    Anyways, got an A overall yay
 
 
 
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