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    (Original post by Alextaylor6)
    For context 1 12 marker, i shifted AD to the left and my friends said they shifted AS? who would be right and also how did people evaluate for the 25 marker??
    I shifted AD to the right, im pretty sure this would be okay as increased interest rates would result in an increase in the cost of borrowing, i said this would deter investment as it the repayment cost would be increased. this would subsequently reduce investment on construction due to becoming less attractive resulting in an overall decrease in construction output
    I is a component of aggregate demand, so a decrease in I would shift AD to the left from AD to AD1 resulting in a reduction in output (y-y1) and a decrease in the general price level p-p1

    for evaluation on the 25 marker
    i wrote about time lags. such as by the time they build the new infrastructure may not be worth the benefits in the long run
    i wrote about if the economy is in a recession may not be the best idea as would have to increase borrowing, increase government debt, may reduce future investment potentials
    i wrote about the investment in infrastructure, may increase motivation as may reduce the time taken to get to work, leading to social benefits may increase productivity of Labour force
    i wrote about the potential negative externalities e.g co2 emissions from the increase in infrastructure may not be sustainable due to scarce resources used may not be beneficial to the sustainability of natural resources
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    (Original post by Layleexx)
    That is the multiplier effect, but more specifically the accelerator effect.
    On the economicshelp page, accelerator effect is defined as "the accelerator effect states that investment levels are related to the rate of GDP"

    So it's basically the same as the multiplier effect, but specifically about investment.
    It was referring to long run growth, not short-run. Accelerator effect could have been mentioned to develop the argument but It was far from the reason behind a right shift in LRAS.
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    (Original post by Caius Filimon G)
    I did state that there would an increase in the industrial capacity of the economy, but I used a graph showing the trend and current growth, and how investment tends to increase trend growth, making it harder for current growth to reach it or surpass it and thus cause demand-pull inflation. I did say that in the short term it's also part of aggregate demand so it improves the economy that way too, not only in the long run with less inflationary pressure, etc.

    What do you think? =o
    surely if the trend growth increases that would decrease inflationary pressures as you are further away from maximum output?
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    For content 2, 12 marker would I get marks for shifting AD to the right due to increased investment? Or did it have to be an LRAS diagram?
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    Don't forget, the multiplier effect is when anything affects national income (could be increased C or I or G) whereas the accelerator effect states that an increase in GDP will lead to a greater increase in investment :-)
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    I wish edexcel would take me out to dinner, because I like to get wined and dined before I get ****ed.
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    (Original post by Rhy)
    It was referring to long run growth, not short-run. Accelerator effect could have been mentioned to develop the argument but It was far from the reason behind a right shift in LRAS.
    Yeah, I realised I messed up
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    Hi! i found out in class today that I got 21/25 on MC for unit 2 (which is much better than expected), however, am worried i messed up on the written and was hoping someone could shed some light as to what sort of mark i should expect? I chose context two and wrote -

    5) deflation = the persistent and continuous fall in the price level

    6) i simply wrote the highest rate and lowest points for both economic growth and inflation - i included the year and numerical data

    7) i drew a rightward shift in the AD curve, as investment is a component of AD and explained the shift - i also defined investment. I then wrote about how an increase in investment will increase productive capacity, increasing supply.

    8) I wrote how economic growth helps employment, however, can lead to inflation, as an increase in employment leads to an increase demand = increase in the price level - including a diagram showing the impact on the LRAS curve. i wrote about the ways in which the government could correct inflation through monetary fiscal and supply side policies and the focused on how by increasing the interest rate in order to reduce the incurred inflation could have a deflationary effect on the economy as it would be likely to lead to an appreciation of the pound, meaning exports decrease (depending on PED). I then tried to rush a conclusion about how the four objective are hard to simultaneously achieve

    sorry if its an effort but would really appreciate any feedback! thank you
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    (Original post by Emilymolly19)
    Hi! i found out in class today that I got 21/25 on MC for unit 2 (which is much better than expected), however, am worried i messed up on the written and was hoping someone could shed some light as to what sort of mark i should expect? I chose context two and wrote -

    5) deflation = the persistent and continuous fall in the price level

    6) i simply wrote the highest rate and lowest points for both economic growth and inflation - i included the year and numerical data

    7) i drew a rightward shift in the AD curve, as investment is a component of AD and explained the shift - i also defined investment. I then wrote about how an increase in investment will increase productive capacity, increasing supply.

    8) I wrote how economic growth helps employment, however, can lead to inflation, as an increase in employment leads to an increase demand = increase in the price level - including a diagram showing the impact on the LRAS curve. i wrote about the ways in which the government could correct inflation through monetary fiscal and supply side policies and the focused on how by increasing the interest rate in order to reduce the incurred inflation could have a deflationary effect on the economy as it would be likely to lead to an appreciation of the pound, meaning exports decrease (depending on PED). I then tried to rush a conclusion about how the four objective are hard to simultaneously achieve

    sorry if its an effort but would really appreciate any feedback! thank you
    The first three questions seem fine. But in the essay I personally think there wasn't a need to cover controlling inflation in so much detail it maybe slightly going off topic, even though it would conflict with economic growth, from what you've written I think it may be a bit much.
    But in general it seems like a good response

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    (Original post by jampot98)
    The first three questions seem fine. But in the essay I personally think there wasn't a need to cover controlling inflation in so much detail it maybe slightly going off topic, even though it would conflict with economic growth, from what you've written I think it may be a bit much.
    But in general it seems like a good response

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    thank You! I know i messed up the last question! haha even though I messed up what sort of mark do you think i could get on the last question?
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    (Original post by Emilymolly19)
    thank You! I know i messed up the last question! haha even though I messed up what sort of mark do you think i could get on the last question?
    Oooh! I really wouldn't be able to hazard a guess. I've never really marked an essay and wouldn't know what mark to give it.

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    (Original post by Renzhi10122)
    Um, it really was though.
    ah yeah i saw the paper today, I am pretty mad at myself for reading so fast and all i could see was balance of payments
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    (Original post by Emilymolly19)
    thank You! I know i messed up the last question! haha even though I messed up what sort of mark do you think i could get on the last question?
    you will get evaluation marks for talking about supplyside policies to prevent inflation as the question was about whether uk can grow without conflicts between objectives. using supplyside policies would help do this when ad rises (but depends on the size of the outgap plus uk is in deflation atm - that's the kinda things i talked about). and i referenced the extract which also said increasing lras would combat inflation.
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    (Original post by Luis Suarez)
    you will get evaluation marks for talking about supplyside policies to prevent inflation as the question was about whether uk can grow without conflicts between objectives. using supplyside policies would help do this when ad rises (but depends on the size of the outgap plus uk is in deflation atm - that's the kinda things i talked about). and i referenced the extract which also said increasing lras would combat inflation.
    Both extracts made clear references to improving productivity, so I guessed that was a hint from AQA

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    (Original post by jampot98)
    Both extracts made clear references to improving productivity, so I guessed that was a hint from AQA
    The key points from the extract which would be to include within your essay were like: inflation, need to increase productivity, wages rising/unemployment and state of other EU countries. Including all these should easily bag you 17+ marks. Then evaluation and other stuff for more
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    (Original post by KnoVolt)
    The key points from the extract which would be to include within your essay were like: inflation, need to increase productivity, wages rising/unemployment and state of other EU countries. Including all these should easily bag you 17+ marks. Then evaluation and other stuff for more
    Yeah I agree, as long as you made at least some analysis of the problems facing the UK economy regarding these objectives, then it would be perfectly acceptableto comment in more depth on some than on others
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    (Original post by Emilymolly19)
    thank You! I know i messed up the last question! haha even though I messed up what sort of mark do you think i could get on the last question?

    You did not mess up the last question through talking about inflation, it was asking how economic growth could create policy conflicts, price stability is a major macroeconomic objective, and thus inflation was relevant.
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    (Original post by Rhy;[url="tel:56055675")
    56055675[/url]]You did not mess up the last question through talking about inflation, it was asking how economic growth could create policy conflicts, price stability is a major macroeconomic objective, and thus inflation was relevant.
    I only really managed to write a page and a bit! What sorta mark range could I expect to get? I'm really hoping for a C overall but feel like I might not get it 😐
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    Hey guys.

    If I wrote about living standards being raised as one of the main macroeconomics objectives in the context 2 essay, is that totally irrelvant?

    Cheers
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    Anyone got the questions for the multiple choice section? I looked at that person's twitter account and couldn't find anything!

    Thanks in advance guys
 
 
 
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