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    (Original post by pdog)
    what was the question?
    Explain How a decrease in spare capacity impact inflation.

    I did an Ad shifting inwards. I probably won't get the marks for that diagram :/
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    yeah there were hardly any I think i got 24 and 25 as C
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    (Original post by tigerslash123)
    Explain How a decrease in spare capacity impact inflation.

    I did an Ad shifting inwards. I probably won't get the marks for that diagram :/
    Yeah maybe not then, what grade were you aiming for?
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    (Original post by pdog)
    Yeah maybe not then, what grade were you aiming for?
    A, I got 74 last year but want to get at least 80. Hopes ruined
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    (Original post by pdog)
    Yeah maybe not then, what grade were you aiming for?
    Pdog I'm sad
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    (Original post by tigerslash123)
    A, I got 74 last year but want to get at least 80. Hopes ruined

    I got 80.. Bang on last year .. Hard to tell if I've improved at all tbh.. But don't worry and try and smash the A2's because they're more
    Important . Also we kinda had it coming to us that they were gonna throw harder q's in this year since we're all " mature " a2 students sitting the paper


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    (Original post by Rose123456)
    You can reduce spare capacity by supply side policies right and that would shift the LRAS and so inflation would decrease .... Correct me if I'm wrong guys 😭
    Supply side policies would increase spare capacity in an economy I drew a LRAS and a curved SRAS running up against it and then showed an increase in AD as increasing inflation and a reduction in the amount of spare capacity in the economy
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    (Original post by benjo59)
    People who did Context 2, did any of you use the Keynesian Long-run Aggregate Supply curve to show how the price level (inflation) rises when the economy nears it's productive potential??


    Or is that all wrong, if so I'm screwed
    This is what I did
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    (Original post by tigerslash123)
    Pdog I'm sad
    Not that big of a deal, 6 ums wouldn't have made a great difference in your whole a-level. Just make sure you do well in the a2 modules and you can still comfortably get an A.
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    (Original post by pdog)
    Not that big of a deal, 6 ums wouldn't have made a great difference in your whole a-level. Just make sure you do well in the a2 modules and you can still comfortably get an A.
    I can't believe you all did context 2, my whole class did context 1
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    (Original post by pdog)
    I can't believe you all did context 2, my whole class did context 1
    I did context 1, it seemed more straight forward for me than context 2
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    (Original post by pdog)
    I can't believe you all did context 2, my whole class did context 1
    Same, we all did context 1! Really easy. Just praying all the others did context 2 to bring grade boundaries down!!
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    why does the context matter?
    everyone has different strengths and weaknesses in different topics, it's really not a big deal
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    For context 1 I'm pretty sure the questions were something along the lines of:

    Define the budget deficit (5)

    2 significant features from data about exchange rates and BoP position between 2007 and 2013 (8)

    Explain how labour productivity affects the BoP deficit (including supply-side policies) (12)

    Assess the consequences of a substantial reduction in the pound sterling exchange rate (25)

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    The second context had a harder 12 marker . Which I got wrong
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    (Original post by majunior)
    I did context 1, does anyone now the sort of points you had to mention?
    I went through the MEPOs.

    So economic growth is all fine but cost-push inflation may occur if we import a lot of capital goods, e.g. India imports 75% of its oil, so the exchange rate may cause inflation to rise.

    Then, exports may rise but we are an economy focused on services and we would need supply-side policies in order to make sure they had the right skills to make our goods competitive. Also, we may be damaging the economy as we are not suited to producing goods at this point, anyway. On top of this, other countries may want to protect their industries and not import our goods anyway.

    Unemployment, I talked about structural unemployment and the possible lack of skills etc, can't really remember what I said.

    In my conclusion I talked about MEPO conflict, the budget deficit and did a comparison of the Japanese economy to the British one. I'm so annoyed that I forgot to mention the multiplier effect though, ugh.
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    For context 1 25 marker:

    Split into 4 paras:
    - Economic Growth = talked about an increase in AD, positive multiplier effect (depends on MPC) , an injection into the circular flow of income. A fall in the pound may not be sustainable for long-run economic growth so UK economy should focus on supply-side measures (quoted from Extract C)
    - Unemployment= An increase in the demand for exports will encourage firms to recruit workers to meet output. However, this depends on labour productivity.
    - Inflation = Will lead to demand-pull inflation as AD increases. Mentioned the idea that currently inflation is at 0.5%, so inflationnary pressure may help to achieve target of 2%. It also depends on the spare capacity in an economy.
    - BoP = Improves the current account deficit by makings exports cheaper and imports more expensive. But quoted from Extract B saying there was little improvement even when the pound fell by 25%. Also stated that the UK has a strong capital and financial account which could offset the the deficit in the current account.

    Conclusion: A fall in £ may be effective in the short term but not in the long run. Other factors such as growth in EU can affect the value of exports.The idea of Brexit could increase uncertainty and has also led to the fall in the £. Government needs to invest into supply side measures once its sorted its budget deficit issue.

    Do you guys think my points were okay?
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    (Original post by legolas_09)
    For context 1 25 marker:

    Split into 4 paras:
    - Economic Growth = talked about an increase in AD, positive multiplier effect (depends on MPC) , an injection into the circular flow of income. A fall in the pound may not be sustainable for long-run economic growth so UK economy should focus on supply-side measures (quoted from Extract C)
    - Unemployment= An increase in the demand for exports will encourage firms to recruit workers to meet output. However, this depends on labour productivity.
    - Inflation = Will lead to demand-pull inflation as AD increases. Mentioned the idea that currently inflation is at 0.5%, so inflationnary pressure may help to achieve target of 2%. It also depends on the spare capacity in an economy.
    - BoP = Improves the current account deficit by makings exports cheaper and imports more expensive. But quoted from Extract B saying there was little improvement even when the pound fell by 25%. Also stated that the UK has a strong capital and financial account which could offset the the deficit in the current account.

    Conclusion: A fall in £ may be effective in the short term but not in the long run. Other factors such as growth in EU can affect the value of exports.The idea of Brexit could increase uncertainty and has also led to the fall in the £. Government needs to invest into supply side measures once its sorted its budget deficit issue.

    Do you guys think my points were okay?

    Wow that seems really good, and covers most of the macro-objectives.
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    (Original post by legolas_09)
    For context 1 25 marker:

    Split into 4 paras:
    - Economic Growth = talked about an increase in AD, positive multiplier effect (depends on MPC) , an injection into the circular flow of income. A fall in the pound may not be sustainable for long-run economic growth so UK economy should focus on supply-side measures (quoted from Extract C)
    - Unemployment= An increase in the demand for exports will encourage firms to recruit workers to meet output. However, this depends on labour productivity.
    - Inflation = Will lead to demand-pull inflation as AD increases. Mentioned the idea that currently inflation is at 0.5%, so inflationnary pressure may help to achieve target of 2%. It also depends on the spare capacity in an economy.
    - BoP = Improves the current account deficit by makings exports cheaper and imports more expensive. But quoted from Extract B saying there was little improvement even when the pound fell by 25%. Also stated that the UK has a strong capital and financial account which could offset the the deficit in the current account.

    Conclusion: A fall in £ may be effective in the short term but not in the long run. Other factors such as growth in EU can affect the value of exports.The idea of Brexit could increase uncertainty and has also led to the fall in the £. Government needs to invest into supply side measures once its sorted its budget deficit issue.

    Do you guys think my points were okay?
    This was mine. Same question



    Intro: Definitions. Possible benefits of Exports! Short term growth but perhaps inflation, cost-push from imports. Linked to extract to say a deficit is very bad for economy.

    Para 1: Talk about benefits of exports etc. Macro objectives like decreasing unemployment/ reducing deficit. Ad diagram.
    Evaluation- inflation but depends on output gap. Also depends on economies abroad. Inelastic demand?

    Para 2: cost push inflation fron more expensive imports. And the negatives from that.

    Para 3: Supply side policies best for long run growth, etc. Increasing productivity. Boosting exports without need of depreciation. So no cost push. But time lags, and if in recession s.s.p wont work. Low confidence etc.

    Conclusion: monetary and s.s. Policies need to work in tandem to ensure both short run and long run growth! Meet macro objectives without conflict.
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    Was the 8 marker in context 1 specific to certain years?
 
 
 
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