AQA Economics AS May 2015

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.

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

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.

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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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?

Um, it really was though.

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.

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

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?

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

Thanks in advance guys