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**********OFFICIAL OCR ECONOMICS F582 21st MAY 2014 THREAD************ Watch

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    Really not motivated to revise, anyone know what the most likely definitions we can get asked about are? Inflation is basically essential for the 18 marker, what else is likely to be on it?
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    (Original post by May-o2q)
    How's everyone revision going?


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    Decent I think. Just don't know exactly what to do for the 18 marker. Hope it is on BoP!
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    (Original post by tomixox)
    Budget deficit means more money is leaving the economy than is coming in. This may because of a trade deficit. This can be solved by implementing import restrictions such as quotas and tarifs.
    You can also reduce a trade deficit by reducing the exchange rate and by using deflationary monetary and fiscal policy to reduce the demand for imports
    Is budget deficit from the BoP being negative?
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    (Original post by CountedSpore)
    Around how many pages do you guys plan on writing for the 18 marker?
    I usually write around 3-4 pages for the essay questions!
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    (Original post by tomixox)
    Budget deficit means more money is leaving the economy than is coming in. This may because of a trade deficit. This can be solved by implementing import restrictions such as quotas and tarifs.
    You can also reduce a trade deficit by reducing the exchange rate and by using deflationary monetary and fiscal policy to reduce the demand for imports
    NO NO NO NO NO


    BUDGET DEFICIT DOES NOT MEAN MORE MONEY IS LEAVING THE ECONOMY THAN COMING IN! this comes up a lot in examiner reports and it is incorrect.


    a budget deficit is where government spending is greater than tax revenue.
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    (Original post by tomixox)
    Budget deficit means more money is leaving the economy than is coming in. This may because of a trade deficit. This can be solved by implementing import restrictions such as quotas and tarifs.
    You can also reduce a trade deficit by reducing the exchange rate and by using deflationary monetary and fiscal policy to reduce the demand for imports
    noo no..
    okay, so a budget deficit is where the government spending is more than total tax revenue.

    so to reduce this deficit you're basically thinking about either; reducing government spending or increases taxes (ie rise in direct tax(income and corporate) or indirect tax etc).. it really is that simple.
    So this is fiscal policy ideas;
    To reduce government spending we can think of an array of ideas, such as cutting public sector wages/pensions, education etc. obviously though there is major downfalls when reducing money spent on education etc. , so it may not be effective!
    A good way to consider reducing government spending in the long term, may be for the government to try and reduce unemployment, as when more people are in work, tax revenue will be higher and the government can reduce their spending on unemployment benefits(such as JSA, housing benefits etc.), -(in effect this is an automatic stabiliser in itself). so governments could potentially look at improving the quality/quantity of education to raise employment.. or all together decrease unemployment benefits which would obviously reduce government spending and maybe kick people into trying to find work.
    The government could too look at supple side policies, such as subsidies to firms, to try and reduce unemployment.


    Basically there is a great deal of different policies that government could adopt to the reduce a budget deficit.. but essentially the aims are the same: to increase tax revenue and/or decrease government spending.
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    What graphs should I learn and what do you guys think the essay question will be?
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    Budget deficit =/= BoP/Current Account deficit!
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    Guys, out of all past papers, which are the one you find hard and tricky? I just get to start on past paper today due to other exams. It would be really helpful if you could tell the one that seems harder than others.


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    (Original post by Ben5903)
    noo no..
    okay, so a budget deficit is where the government spending is more than total tax revenue.

    so to reduce this deficit you're basically thinking about either; reducing government spending or increases taxes (ie rise in direct tax(income and corporate) or indirect tax etc).. it really is that simple.
    So this is monetary policy ideas;
    To reduce government spending we can think of an array of ideas, such as cutting public sector wages/pensions, education etc. obviously though there is major downfalls when reducing money spent on education etc. , so it may not be effective!
    A good way to consider reducing government spending in the long term, may be for the government to try and reduce unemployment, as when more people are in work, tax revenue will be higher and the government can reduce their spending on unemployment benefits(such as JSA, housing benefits etc.), -(in effect this is an automatic stabiliser in itself). so governments could potentially look at improving the quality/quantity of education to raise employment.. or all together decrease unemployment benefits which would obviously reduce government spending and maybe kick people into trying to find work.
    The government could too look at supple side policies, such as subsidies to firms, to try and reduce unemployment.


    Basically there is a great deal of different policies that government could adopt to the reduce a budget deficit.. but essentially the aims are the same: to increase tax revenue and/or decrease government spending.
    No Noooo not monetary, fiscal!!


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    (Original post by May-o2q)
    No Noooo not monetary, fiscal!!


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    sorry yes, youre right, i did mean fiscal
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    We clearly are all struggling with macro aren't we!
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    Yo mandem you know when I draw a as and ad diagram do the lines need to b curvy or can it b str8 like in f581 holla man if u kno styl
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    https://www.youtube.com/watch?v=_XLV8cBbG1o creased
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    Anyone have any idea what the 18 marker might be based on? its usually random anyway but i feel like they might try and throw us off this year - OCR have been wording questions differently in all the exams i have done:/
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    (Original post by RazorBlade3000)
    Yo mandem you know when I draw a as and ad diagram do the lines need to b curvy or can it b str8 like in f581 holla man if u kno styl

    Seriously, ly, can you draw as and ad curves like how you would in f581???????
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    Sorry!! Didn't realise I got that so wrong!!!! my bad!!
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    In the macro exam, I find it very difficult to achieve the evaluative marks in COMMENT question. For some comment questions, talking about the size of the increase or initial level is sufficient. However for others it requires you to talk about external factors such as incomes etc.
    Any tips of getting the evaluative marks??????????
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    (Original post by tomixox)
    In the macro exam, I find it very difficult to achieve the evaluative marks in COMMENT question. For some comment questions, talking about the size of the increase or initial level is sufficient. However for others it requires you to talk about external factors such as incomes etc.
    Any tips of getting the evaluative marks??????????
    Talk about time lags, size of the change, sometimes elasticity, all other factors remaining equal, consumer confidence...
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    (Original post by tomixox)
    Budget deficit means more money is leaving the economy than is coming in. This may because of a trade deficit. This can be solved by implementing import restrictions such as quotas and tarifs.
    You can also reduce a trade deficit by reducing the exchange rate and by using deflationary monetary and fiscal policy to reduce the demand for imports
    And what are the macroeconomic effects on that? Could please tell me also some evaluations?
 
 
 
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