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Economics Unit 2 prediction for 17th may 2013 :) watch

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    (Original post by neji123)
    for ii. (effect of low sterling on current account deficit) the question said refer to extract 1, but extract 1 said that the depreciation in the exchange rate didn't cause the deficit to improve and that imports were still high and exports low because of other non price factors. did u mention that?
    Well i wrote about how imports may still stay high in my evaluation, but didn't refer to the extract explicitly. I dont think ill get too penalised
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    I'd done question 2, it was purely Monetary and Fiscal policy. I thought it was a good paper but ran out of time so didn't get to read through.
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    (Original post by iwant)
    Well i wrote about how imports may still stay high in my evaluation, but didn't refer to the extract explicitly. I dont think ill get too penalised
    Even when I was going through past papers, when they say refer to extract, and the extract contradicts the argument.
    How many marks throughout the paper do you guys reckon reference to extracts hold, even when it doesn't ask in the question?
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    (Original post by Al Fresco)
    Even when I was going through past papers, when they say refer to extract, and the extract contradicts the argument.
    How many marks throughout the paper do you guys reckon reference to extracts hold, even when it doesn't ask in the question?
    so when the extract contradicts it do you still write what the extract says or the standard argument? i said both just to be safe
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    (Original post by ljh950912)
    'Persistent' deficit doesn't cause a shift in AD.


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    IF its persistent than imports are greater than exports most of the time, therefore so X-M gets more negative so AD will constantly shift inwards
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    (Original post by neji123)
    so when the extract contradicts it do you still write what the extract says or the standard argument? i said both just to be safe
    I just write about what I learnt in lessons and ignore all the extracts, they are only good for evaluation
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    (Original post by iwant)
    IF its persistent than imports are greater than exports most of the time, therefore so X-M gets more negative so AD will constantly shift inwards
    Only if X-M gets worse there will be an inward shift.


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    I did question 2, thought it was okay. Had no idea how to calculate an index number so that put me off question 1 straight away - I thought both 30 markers were fine though.

    What did people put for the question about reasons why the 2% inflation target could have been missed? I put excessive QE and rising oil prices, but I have no idea if that's correct. I also forgot to mention the fact items are weighted in the CPI question... other than that, I thought it went fine. I got 79 UMS last time, so I'm hoping for a few more marks as a safety net for unit 4 (need an A overall).
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    (Original post by jordanW241)
    I did question 2, thought it was okay. Had no idea how to calculate an index number so that put me off question 1 straight away - I thought both 30 markers were fine though.

    What did people put for the question about reasons why the 2% inflation target could have been missed? I put excessive QE and rising oil prices, but I have no idea if that's correct. I also forgot to mention the fact items are weighted in the CPI question... other than that, I thought it went fine. I got 79 UMS last time, so I'm hoping for a few more marks as a safety net for unit 4 (need an A overall).
    For why inflation missed 2% target I talked about how increase in average salaries would increase consumer confidence and therefore spending so consumption increase therefore as increase leading to inflation

    Also talked about investment being maybe another reason as higher consumer demand so firms invest to increase production etc so ad shifts to the right causing inflation to go above 2% target


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    (Original post by neji123)
    so when the extract contradicts it do you still write what the extract says or the standard argument? i said both just to be safe
    Honestly, I have no idea. The marks schemes are very vague and pointless. I hope an economics person marks them because others will stick to the mark scheme word for word.
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    I'm sure people with economic knowledge mark the exams as I recall often it says "Any other valid points are accepted" How can a person without eco knowledge do that?
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    hi guys.I did question 2 in this paper..For the 30 mark question I got really confused..I put some points about how reducing fiscal deficit policy would help achieving macroeconomics objectives but as it was stated in the extract the quote from chancellor was that this policy had failed so I quoted that and started rejecting this policy so pretty much of my answer was how this policy was a fail lol and put other policies as alternatives for my evaluation..Do you think I will lose a lot of marks because of stating not too many positive points ?
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    (Original post by kurdabora)
    For why inflation missed 2% target I talked about how increase in average salaries would increase consumer confidence and therefore spending so consumption increase therefore as increase leading to inflation

    Also talked about investment being maybe another reason as higher consumer demand so firms invest to increase production etc so ad shifts to the right causing inflation to go above 2% target


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    Is that for Part a(ii) of Question 2 about why inflation had risen in 2011?
    They actually gave you the two reasons you needed in the extract; "rising commodity prices" and an "increase in VAT". Judging by previous mark schemes, you would get two marks for identifying each point and another two marks for explaining each point.
    The points you mention about consumer spending rising leading to inflation are probably not going to be accepted as they probably wanted you to mention cost-push inflation rather than demand-pull inflation. The question specifically referred to 2011 and in the extract it mentioned how the economy was contracting during the period- so your points about "higher consumer demand" and AD shifting right don't apply here.
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    (Original post by Skaterkid)
    Does unit 4 stuff get marks? I mentioned Laffer curve and the Kuznet curve to evaluate
    Should do.

    Examiners are encourage to adopt positive marking, so they credit anything relevant.

    That's why you can bullet point stuff if you're running out of time.
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    What was the answer for index number?
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    277.77

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    (Original post by HKhan12)
    Hey yeah. I did that question. I put down that a Decrease in gvmt spending meant the less money is injected into the circular flow of income and ad taxes increased more money withdrawn etc so a low rate of inflation was maintained the balance of payments got better and also the environment thing u said I said as well then I talked about low unemployment and lower something else and then spoke about how long I takes for changes I the fiscal policy to actually take place and also drew a diagram
    i also mentioned the size of the multiplier effect decreasing... appropriate?
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    (Original post by germankid101)
    Is that for Part a(ii) of Question 2 about why inflation had risen in 2011?
    They actually gave you the two reasons you needed in the extract; "rising commodity prices" and an "increase in VAT". Judging by previous mark schemes, you would get two marks for identifying each point and another two marks for explaining each point.
    The points you mention about consumer spending rising leading to inflation are probably not going to be accepted as they probably wanted you to mention cost-push inflation rather than demand-pull inflation. The question specifically referred to 2011 and in the extract it mentioned how the economy was contracting during the period- so your points about "higher consumer demand" and AD shifting right don't apply here.
    Yh but in extract 1 it says in 2011 average salaries had increased as well....


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    (Original post by xstarsx67)
    Yeah I hope so too, hopefully like 2-3 marks do you think?


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    Well it was a 6 marker, for a 2/3 step calculation.
    Considering we worked out the % change = 2/3 marks
    Then we got 277 = 1 mark
    Only because we then wrote down 177, the examiner will deduct marks - or not award the full 6. :mad:
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    (Original post by kurdabora)
    Yh but in extract 1 it says in 2011 average salaries had increased as well....


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    It specifically mentioned the real value of salaries decreasing, even though wages increased (as inflation rose by a greater amount) which was the whole point of the Part A anyway. It also mentioned negative GDP growth of -0.3% during the period so your points don't match up.
 
 
 
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