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    (Original post by Trungb96)
    This is what I wrote for the 30 markers in Q2, which was also what most of my friends did. Take this for consideration only.

    Define supply side policy.
    Few arguments:
    1. Cut benefits -> create incentive to find jobs -> more work -> output increase
    2. Cut income tax -> create incentive to work for workers -> productivity increase -> output increase
    3. Cut corporation tax -> more investment -> technology, efficiency etc -> output increase
    4. Training and education -> skills goes up -> more output.

    Evaluation: time lag, quality of training, other factors cancelling out, firms may not invest but will keep it for themselves, other way to increase real output ( I referred to other policies, fiscal and monetary to compare, that kind of stuff).

    Hope this helps.
    exactly, I mentioned all of these but instead of cutting benefits I used Privatisation and Deregulation which I think are strong supply side policies especially for increasing real output
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    (Original post by dripper)
    that was you? loved it
    YAY!
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    (Original post by Praveen101)
    You're going to get 0 for AA and evaluation as the only way you can mention subsidies is by them subsiding education, other forms of subsidies cant be used e.g to farmers as this doesn't increase productivity just output , the mark scheme never awards for simply subsidies and textbooks advise against using it.
    Oh my god. Is that really true? ****ing hell. I've never Heard that before . Been a year since doing it and just ****
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    (Original post by Cate12345)
    Can anyone briefly say the question 1 questions??? And if possible the marks too. Just brief cause can't remeber 😓
    the first one was on saving ratio
    and i can vaguely remember the rest
    effect of budget deficit on circular flow of income
    benefits of low/stable inflation
    analyse monetary policy
    reasons why they didn't change the interest rate
    the 30 marker was demand-side policies conflicting with macroeconomic objectives
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    (Original post by Praveen101)
    Since it was 12 marks it would be 8 marks for KAA and 4 marks for eval

    8 KAA

    Diagram showing both the AS (1) and AD(1) falling (4 for being correct overall)

    Then explanation about why AD falls (2)

    And why AS falls (AD)

    4 eval (2x2 or one for 4)

    e.g I is a small component of AD, other components of AD
    I said in the long run productive capacity would be affected, thus in the future real output will fall significantly

    Also I talked about elasticity of AS curve e.g spare capacity

    will I get eval marks??
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    (Original post by Tommy97)
    Oh my god. Is that really true? ****ing hell. I've never Heard that before . Been a year since doing it and just ****
    My teacher always tell me to avoid writing about subsidies as much as possible, as it's not applicable to the UK or any developed countries since there aren't that much subsidies in real life. In the UK there's barely any subsidies, maybe some for agricutural business
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    'To what extent do demand side policies lead to conflicts between macroeconomic objectives'' (30 marks)
    Things they considered before keeping interest rate the same.
    Benefits of low inflation.
    What does a budget deficit do to the circular flow of income.
    What is meant by ''monetary policy''?
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    (Original post by Mowtoe)
    the first one was on saving ratio
    and i can vaguely remember the rest
    effect of budget deficit on circular flow of income
    benefits of low/stable inflation
    analyse monetary policy
    reasons why they didn't change the interest rate
    the 30 marker was demand-side policies conflicting with macroeconomic objectives
    so you read with aswell, thats what i wrote but alot of people are saying it said between when im sure it sed with marco objectives
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    (Original post by kylemiller)
    for the productivity question, i put as the productivity decreased, firms have to hire more workers. therefore, the cost of production might increase and results in inflation.
    is it right?
    Well logically, a firm wouldn't do that would they, if a Tyre fitter in a garage was inefficient they wouldn't hire more Tyre fitters, they would pass on the increase in prices to consumer directly or they would substitute with more efficient capital leading to unemployment, you could have gone directly to for final point but hopefully examiners will overlook it
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    (Original post by Trungb96)
    This is what I wrote for the 30 markers in Q2, which was also what most of my friends did. Take this for consideration only.

    Define supply side policy.
    Few arguments:
    1. Cut benefits -> create incentive to find jobs -> more work -> output increase
    2. Cut income tax -> create incentive to work for workers -> productivity increase -> output increase
    3. Cut corporation tax -> more investment -> technology, efficiency etc -> output increase
    4. Training and education -> skills goes up -> more output.

    Evaluation: time lag, quality of training, other factors cancelling out, firms may not invest but will keep it for themselves, other way to increase real output ( I referred to other policies, fiscal and monetary to compare, that kind of stuff).

    Hope this helps.
    Aren't cutting income tax and benefits fiscal policy while the question was about supply side? I wrote about training and education like you but also I did subsidies for firms and investment into infastructure
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    (Original post by member1753327)
    I said in the long run productive capacity would be affected, thus in the future real output will fall significantly

    Also I talked about elasticity of AS curve e.g spare capacity

    will I get eval marks??
    If you said a rise in AD will cause price levels to rise, yes than you can evaluate about the level of spare capacity however if you just mentioned that real output will rise because of AD rising but not mention prices rising then itll make little sense
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    (Original post by Trungb96)
    My teacher always tell me to avoid writing about subsidies as much as possible, as it's not applicable to the UK or any developed countries since there aren't that much subsidies in real life. In the UK there's barely any subsidies, maybe some for agricutural business
    Honestly feel awful now, can someone possibly link me to a mark scheme with a similar question? I don't know any examples
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    (Original post by Darcy1)
    Aren't cutting income tax and benefits fiscal policy while the question was about supply side? I wrote about training and education like you but also I did subsidies for firms and investment into infastructure
    Actually it is and it isn't, these two can be argued for both side of policy. You can say they keep more disposable income, therefore they can afford to spend more ( demand side policy) or you can argue it the way I did
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    (Original post by AJC1997)
    exactly, I mentioned all of these but instead of cutting benefits I used Privatisation and Deregulation which I think are strong supply side policies especially for increasing real output
    I used Privatisation, Education/training and raising of retirement age/lowering minimum working age which I've always quite liked as a point to increase amount of workers which firms can now hire, increasing output.
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    (Original post by Praveen101)
    If you said a rise in AD will cause price levels to rise, yes than you can evaluate about the level of spare capacity however if you just mentioned that real output will rise because of AD rising but not mention prices rising then itll make little sense
    Actually real output and price level fell
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    1d.) ''To what extent do demand side policies lead to conflicts between macroeconomic objectives'' (30 marks)

    This is how I structured it:

    I mentioned a macroeconomic objective in each paragraph, stated HOW a fiscal/monetary policy would help achieve it & then I stated how/why that objective would conflict with the initial objective. Then I obviously evaluated
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    (Original post by jimbo1234567890)
    so you read with aswell, thats what i wrote but alot of people are saying it said between when im sure it sed with marco objectives
    it was definitely with
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    (Original post by Darcy1)
    Aren't cutting income tax and benefits fiscal policy while the question was about supply side? I wrote about training and education like you but also I did subsidies for firms and investment into infastructure
    Fiscal policies and supply side policies overall , in your example it self the government spending on education is infact Government expenditure is it not and therefore an expansionary fiscal policy. aswell as a supply side policy.

    KAA 18Up to 6 marks (3 x 2 marks):
    • Defining supply side policies as measures by the government toincrease productive capacity of the economy OR increase LRAS• Defining economic growth as an increase in either real OR potentialGDP• Use of relevant data (e.g. data on corporation tax rates from Extract2 and/or Figure 2)• Use of a production possibility frontier diagram to demonstrategrowth through SSP OR use of an AD/AS diagram to demonstrategrowth through SSP

    Policies might include (up to 12 marks):
    Corporation tax reductions (1 x 4 marks or 1 x 6 marks)
    • increasing investment/productivity or attraction of overseasinvestment and link to economic growthOther SSP (2 x 4 marks or 1 x 6 marks) - 2 marks for identification of policyand up to 4 marks for link to economic growth• Increased or improved education• Increased and improved training• Increased or improved health care• Changing the level of benefits to incentivise employment• Reducing income tax to incentivise employment• Cutting cost of bureaucracy / increased deregulation• Privatisation of an industry such as Royal Mail, which may lead toincreased competition, innovation and efficiency• Infrastructure investment such as roads or broadband, reducingindustries' costs or improving access to market• Increased flexibility and/or mobility of labour market, e.g. reducetrade union power / improved information flows / reduce or abolishnational minimum wage

    Evaluation of other supply side policies (up to 1 x 6 marks or 2 x 4 marks)
    • Time it takes for supply side policies to take effect• Privatisation may lead to private monopolies and less efficiency andlower economic growth• Cut in income tax designed as an incentive to work and invest may beineffective if workers use it as an opportunity to work less for the(30)same income• The actions of other countries also trying to attract investment• Increase in UK taxation elsewhere may have an effect on incentives• Supply side policies ineffective if AD is very low• Elasticity of AD curve• Magnitude of policy changes.
    • Cut in corporation tax ineffective if companies use the cut to boostdividend payments / retained profits rather than for investment• Interest rates / confidence may affect investment more thancorporation tax rates (questioning ceteris paribus)• Positive or negative comparison to other countries' corporation taxrates
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    wait so a fall in AD can not be used to evaluate the elasticity of AS curve??
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    lol its 100% between macro-economic objectives
 
 
 

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