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

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    What are the macroexonomic effects of reducing budget deficit? Some evaluations also?
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    If you haven't already, check out these videos; they're a godsend for OCR Economics.

    https://www.youtube.com/channel/UCQb...IjcSPZOiNKJu0g

    Should answer most of your questions.
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    What are the macroexonomic effects of reducing budget deficit? Some evaluations also?


    The budget deficit refers to the government spending (for example on the nhs) more than they are receiving in revenue (taxation). These are the components of Fiscal Policy.
    The CURRENT ACCOUNT deficit is referring to your exports-imports = net exports.

    So to reduce the budget deficit you would decrease government spending and increase taxation. However by doing this it also means that economic growth is reduced and unemployment is increased- as government spending is a component of AD and a injection into National Income whilst taxation is a withdrawal.
    Evaluation would include: the size in the change in spending/taxation, other factors eg interest rates, the government objectives eg if they are trying to achieve sustained economic growth then they wouldnt necessarily attempt to reduce the budget deficit but focus on this instead
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    could someone please confirm whether the exam is AM or PM? I can't tell whether I've got a clash or not?
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    PM
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    (Original post by fluctuationsman)
    could someone please confirm whether the exam is AM or PM? I can't tell whether I've got a clash or not?
    Its PM
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    Does anyone know the calclations for the exam that may come up?
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    (Original post by mohknows)
    Does anyone know the calclations for the exam that may come up?
    someone said the calculations are gcse maths

    but one calculation is GDP/population this is the gdp per head
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    I'm predicting BoP or Unemployment to come up this year. They might say something like 'discuss how supply side policies can improve an economy's trade balance' just guessing like i did for unit 1 which turned out to be exactly like i predicted

    For the case study i think they might use Japan or India :/
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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
    Im pretty sure this is wrong? A budget deficit arises when government spending exceeds tax revenue
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    (Original post by Bude8)
    If you haven't already, check out these videos; they're a godsend for OCR Economics.

    https://www.youtube.com/channel/UCQb...IjcSPZOiNKJu0g

    Should answer most of your questions.

    Couldn't open the link. Could you tell me what are the names of these videos so I can Search?Thx
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    (Original post by BIGskell)
    Im pretty sure this is wrong? A budget deficit arises when government spending exceeds tax revenue
    Yeah it is verrrrrrrrrry wrong haha!
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    (Original post by SUNNYOX)
    Couldn't open the link. Could you tell me what are the names of these videos so I can Search?Thx
    EconPlusDal
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    The case study will be on morocco, evidently the best country in the world?

    18 Marker will be why are you reading this and not revising???
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    (Original post by Hitoeveryone)
    I'm predicting BoP or Unemployment to come up this year. They might say something like 'discuss how supply side policies can improve an economy's trade balance' just guessing like i did for unit 1 which turned out to be exactly like i predicted

    For the case study i think they might use Japan or India :/
    what points would you include for that question ?

    and ohh how comes those countries?
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    guys how do you calculate the unemployment rate again please?
    and GDP?

    And any other calculations needed for this exam??
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    (Original post by tomixox)
    Yeah it is verrrrrrrrrry wrong haha!
    Thought so!
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    (Original post by wolalala)
    guys how do you calculate the unemployment rate again please?
    and GDP?

    And any other calculations needed for this exam??
    unemployment rate is (unemployed/labour) * 100%
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    How would you work out this one

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    (Original post by BIGskell)
    unemployment rate is (unemployed/labour) * 100%
    ah thank you!!
 
 
 
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