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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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    someone please look at my post 2 posts up and comment on it
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    (Original post by Fas)
    yeah it wasn't asking for a percentage i don't think , i got 2572 billion dollars i think for that
    Yeah that was correct.
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    (Original post by Fas)
    for Economics ? you need 160/200 UMS in total for the A , so 80/100 UMS on each paper. But if you scored 90/100 on one paper , then you can score 70/100 on the other and still get an A.
    Thank you! Better nail the micro cuz I know I failed macro ...

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    (Original post by jordan6278)
    hi can someone please answer my questions. Felt the exam went well, the essay question was good. Just one thing, instead of showing a decrease in demand pull and cost push inflation due to increase in exchange rates i just explained and did 2 diagrams describing the two, (showing a diagram showing what demand pull and cost push inflation was) this was after the introduction. Then went onto explain how exchange rate and decrease exports and all that then evaluated. Thats allright yh

    lastl, on the question asking about causes of inlfation, i said number one the increase in consumer expenditure in china, and for number two the high level of investment...described how both led to inflation (increase in AD)

    Also pretty sure i got 1b wrong...because i said that you cant tell what happens with injections and withdrawels from the increase in RGDP....apart from that hoping for a middle A...hope everzone else did well

    cant really comment on the essay as tbh the examiner is the only one who knows whats right and whats wrong

    the causes of inflation one - i think it was hinting at the fact that there was cost-push and demand-pull inflation present , rise in wages and then something relating to increased AD. What youve put is not wrong , just not sure how the mark scheme will treat it.

    yeah Q1B was weird - i put injections were greater than leakages but with a crappy reason lol
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    (Original post by Fas)
    cant really comment on the essay as tbh the examiner is the only one who knows whats right and whats wrong

    the causes of inflation one - i think it was hinting at the fact that there was cost-push and demand-pull inflation present , rise in wages and then something relating to increased AD. What youve put is not wrong , just not sure how the mark scheme will treat it.

    yeah Q1B was weird - i put injections were greater than leakages but with a crappy reason lol
    1b was only a 2 mark question. I put that according to the case study, Real GDP was increasing and so injections had exceeded leakages. Surely that's enough :confused:
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    (Original post by lucysutton)
    Personallyy...
    I defined the exchange rate and drew a diagram to show how it was determined, defined inflation and then inflation rate.
    Then I wrote about how if you have a strong currency imports are cheaper exports are dearer and therefore there will be less demand for exports and less demand in the domestic economy as imports are cheaper
    Then I explain that (X-M) was a component of AD so AD should shift left, and I showed it on a diagram operating at full capacity to show that it could bring down the price level. Then I showed it at spare capacity too and showed that it didn't reduce price level but instead just reduced output.
    Then I wrote that the assumption lacks reference to human nature and motivation and people may still choose to buy exports because they can't get certain products domestically then I went on about bananas.... and how you may not want to import because of poorer quality
    And then I did some really super quick little star thing explaining it depended what the exchange rate was in the rest of the world and something else scrawled but no idea about that!

    Anybody else find the second question about if injections were greater really confusing? :')

    Basically the circular flow of income is the same as the circular flow of output, and since China's real output increased (in the stimulus) you say that the only way this can occur is if there are greater injections than leakages
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    These are pretty much my responses, use them as help or disagree and give me advice, whatever you choose, just providing info (these are all shortened answers btw)

    1.a) saving, taxation, imports
    B) real output increased in china there injection greater than leakages, as more output
    produced than before
    2.a)- high interest rates mean greater rate of return, more saving, less spending
    -low consumer confidence means they may save for future precautions and opportunity cost is spending
    -low disposable incomes (eg from high income tax) means less money to spend therefore less CE
    b) Japan £45000, china £4800, therefore Japan.
    3.a)inflation is a sustained rise in the general price level over a given period of ttime
    b) price level rose, but more slowly between 2007 and 2009, then price level dropped in 2009, then it increased in 2010, and accelerated its increase in 2011. Overall the price level increased in this time.
    c)-high consumer expenditure means high AD meaning high demand pull inflation
    -increased wages means greater costs of production, meaning high cost push inflation
    4.a) 6480x0.40=2572 billion
    b) high interest rates means less incentive to borrow, more incentive to save, increases the cost of borrowing, so firms less likely to invest, therefore investment decreases. Depends on capacity utilisation, size of increase, original interest rate, firm confidence, and level of consumer expenditure (obviously evaluated more, just giving brief ideas)
    5.increase spending on training means workers are more skilled at their jobs, therefore labour force is more productive, therefore long run AS is achieved.
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    (Original post by LampardLegend)
    These are pretty much my responses, use them as help or disagree and give me advice, whatever you choose, just providing info (these are all shortened answers btw)

    1.a) saving, taxation, imports
    B) real output increased in china there injection greater than leakages, as more output
    produced than before
    2.a)- high interest rates mean greater rate of return, more saving, less spending
    -low consumer confidence means they may save for future precautions and opportunity cost is spending
    -low disposable incomes (eg from high income tax) means less money to spend therefore less CE
    b) Japan £45000, china £4800, therefore Japan.
    3.a)inflation is a sustained rise in the general price level over a given period of ttime
    b) price level rose, but more slowly between 2007 and 2009, then price level dropped in 2009, then it increased in 2010, and accelerated its increase in 2011. Overall the price level increased in this time.
    c)-high consumer expenditure means high AD meaning high demand pull inflation
    -increased wages means greater costs of production, meaning high cost push inflation
    4.a) 6480x0.40=2572 billion
    b) high interest rates means less incentive to borrow, more incentive to save, increases the cost of borrowing, so firms less likely to invest, therefore investment decreases. Depends on capacity utilisation, size of increase, original interest rate, firm confidence, and level of consumer expenditure (obviously evaluated more, just giving brief ideas)
    5.increase spending on training means workers are more skilled at their jobs, therefore labour force is more productive, therefore long run AS is achieved.
    4a doesnt equal that, the answer is 2592 where are you getting 2572 from
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    btw for the question why consumer expenditure fell i put

    increase in income tax
    fall of income
    increase in interest rates

    is that ok
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    (Original post by KanKan)
    An F581 question:

    Do we have to learn about minimum/maximum prices for this exam?

    My teacher has insisted we do, but the specification doesn't agree.
    It's on the mark scheme for May 2011 so...
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    lampardLegend 4a doesnt equal that, the answer is 2592 where are you getting 2572 from
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    (Original post by rber)
    btw for the question why consumer expenditure fell i put

    increase in income tax
    fall of income
    increase in interest rates

    is that ok
    Yup! As long as its all explained correctly


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    (Original post by rber)
    lampardLegend 4a doesnt equal that, the answer is 2592 where are you getting 2572 from
    Yeah apologies, I meant 2592, hand slipped
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    (Original post by LampardLegend)
    Yeah apologies, I meant 2592, hand slipped
    Sorry for my aggressive tone, I regret putting it like that. Apologies
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    (Original post by rber)
    Sorry for my aggressive tone, I regret putting it like that. Apologies
    Haha it's fine! Is the rest of it similar to what you got?
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    (Original post by LampardLegend)
    Haha it's fine! Is the rest of it similar to what you got?
    For the cause of inflation, I talked about investment as mentioned in the text is that correct?
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    (Original post by rber)
    btw for the question why consumer expenditure fell i put

    increase in income tax
    fall of income
    increase in interest rates

    is that ok
    I did those too!! )


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    (Original post by lufc_dan)
    1b was only a 2 mark question. I put that according to the case study, Real GDP was increasing and so injections had exceeded leakages. Surely that's enough :confused:
    i hope so hahaha cos thats the same reason i put ! :L
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    (Original post by lucysutton)
    Personallyy...
    I defined the exchange rate and drew a diagram to show how it was determined, defined inflation and then inflation rate.
    Then I wrote about how if you have a strong currency imports are cheaper exports are dearer and therefore there will be less demand for exports and less demand in the domestic economy as imports are cheaper
    Then I explain that (X-M) was a component of AD so AD should shift left, and I showed it on a diagram operating at full capacity to show that it could bring down the price level. Then I showed it at spare capacity too and showed that it didn't reduce price level but instead just reduced output.
    Then I wrote that the assumption lacks reference to human nature and motivation and people may still choose to buy exports because they can't get certain products domestically then I went on about bananas.... and how you may not want to import because of poorer quality
    And then I did some really super quick little star thing explaining it depended what the exchange rate was in the rest of the world and something else scrawled but no idea about that!

    Anybody else find the second question about if injections were greater really confusing? :')
    I pretty much wrote the same as you, was getting worried that not many people were!! But, instead of the bit about bananas and quality of products, I wrote about the effect of the other three components increasing at the same time as the exchange rate increasing, and possibly causing a multiplier effect

    But for the second question I wrote some random rubbish about how real GDP was increasing, thus injections must be greater than leakages!!
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    (Original post by CTArsenal)
    usually depends on the paper, but the threshold is around 56/60 for 100 UMS from what I've gathered.
    Ahh great thanks! are you taking the unit 1 exam this Friday by the way?
 
 
 
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