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AQA A2 Economics Unit 4 (ECON4) June 23rd OFFICIAL THREAD Watch

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    I don't think a question on leaving the EU will come up, maybe the consequences of turkey joining.
    There was a exact question i think in 2013 that was about whether its better to stay or leave the EU cant do it again.

    I don't think they have ever done protectionism before (well recently) its my guess, alot of people don't like it so i think they will throw it in. It could be used as China and America were beefing some time ago when the paper was written.
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    Discuss ways in which government economic policies can be used to try to reconcile conflicts between macroeconomic objectives.

    This is a hard question cause all I can think of is supply side policies :\
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    (Original post by outofsync)
    Topics i'm going to be revising

    A. Economic growth/living standards/and even development (Yes, even for AQA. They can be sneaky)
    B. The effectiveness of monetary policy (with contrast to fiscal policy of course)
    C. UK's poor performance in export led growth (basically how to improve high tech manufactures)
    D. Falling commodity prices/Oil prices globally
    E. Chinese slowdown
    F. Trade diversion/Protectionism

    I have made the decision to not revise the EU in depth. I don't think they will ask us, it's highly topical and also highly political and i think they'll want us to stretch our minds and use economic toolkits rather than copy and pasting infomation we've read in the media.

    Again, i won't be revising unemployment, current account deficits, exchange rates etc in huge detail but will of course be ensuring i know the theory.

    Hope this helps anyone and good luck
    Would you be able to explain how exactly the Chinese slowdown specifically affects the UK?
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    (Original post by SmartStudent24)
    Discuss ways in which government economic policies can be used to try to reconcile conflicts between macroeconomic objectives.

    This is a hard question cause all I can think of is supply side policies :\
    You can question the question and write an amazing conclusion on this.
    Can argue only conflict in SR in long run no conflict, use Phillips curve and butcher his theory then move onto describing it matters where in the economic cycle u are etc and draw some lras and ad diagrams showing e.g growth without inflation if in reession as opposed to growth and inflation in a recovery.
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    Does anyone know

    1- how a decrease in the price of oil will affect the global economy and specifically the UK economy

    2- how a slow down in China will affect the global economy and specifically the UK
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    (Original post by czj1997)
    does anyone have candidate exemplars they can share please i can only find one online
    Where did you find that? / which one is it? no i'm afraid.
    There's the eocn4 exemplar on the AQA website though!
    http://filestore.aqa.org.uk/subjects...-CEXWECON4.PDF
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    (Original post by SmartStudent24)
    Discuss ways in which government economic policies can be used to try to reconcile conflicts between macroeconomic objectives.

    This is a hard question cause all I can think of is supply side policies :\
    Yep I think there is a lot to talk about within supply side policies and the different policies that can be implemented:
    1) Conflict between environmental sustainability ability and economic growth can be overcome by encouraging investment, i.e.: "green banks" and enforcing policies such as tradable pollution permits.
    2) Conflict between economic growth and inflation can be overcome by lowering cost of production for firms (subsidies and lowering cooperation tax).
    3) Conflict between economic growth causing income inequality and be overcome by progressive taxation and welfare payments.

    Also I think this will call for quite a long conclusion:
    1) Monetary policy as a tool instead to reconcile macroeconomic objectives vs supply/fiscal policies and examples.
    2) Issues with using government policies: large budget deficits and rising national debt can affect UK macroeconomy in the long term in terms of stability and confidence.
    3) Which macroeconomic policies are most in need of reconciliation given state of UK economy.
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    (Original post by doshea1311)
    did this for my mock. theres a lot to talk about but the key focus is the bit at the end where it says 'at the same time'. so you can use analysis of like decreased spending in areas such as welfare benefits or possibly the use of expenditure switching policies which tries to redirect spending to sectors of the economy that needs it, for example our exporting firms who face fierce competition atm. but then you can evaluate by saying if the eu is also decreasing their public sector debt then the uk govt switching policies may be relatively futile as the demand from the eu (our main exporter) will be also reduced, further deteriorating our bofp.
    stuff along those lines but you can definitely evaluate with the fact that the eu is decreasing 'at the same time'
    ohh so does 'public sector debt' mean the same thing as 'budget deficit?'
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    Someone clarify the difference between the Eurozone and the Single MArket again? I keep confusing myself
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    (Original post by Kitkat5)
    Someone clarify the difference between the Eurozone and the Single MArket again? I keep confusing myself
    single market = free trade area with no tariffs etc and a common ex tariff on non-member countires

    eurozone is a monetary union as well, but not all countries are in the monetary union obvs ££££££
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    Do you guys think we're likely to get an inflation question?
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    (Original post by HCLx)
    single market = free trade area with no tariffs etc and a common ex tariff on non-member countires

    eurozone is a monetary union as well, but not all countries are in the monetary union obvs ££££££
    Ooooh, we're currently in the single market right?
    yeah eurozone is everyone who has the Euro right?
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    Okay guys
    Just went down to the shop to get- chocolate m&ms, red bull and gum
    GO HARD OR GO HOME lool this is probs bad for me but i need to stay up to cram :'(
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    (Original post by Kitkat5)
    Ooooh, we're currently in the single market right?
    yeah eurozone is everyone who has the Euro right?
    Yeah we operate in the single market or common market (pretty sure they're the same thing anyway) - but yes everyone who uses the euro is part of the eurozone e.g. greece, spain, france

    Pros of Monetary unions are:
    - lower transaction costs
    - non-fluctuating ex rate
    - currency stable against speculation
    - increased business confidence
    - prices between countries easier to compare and PPP disparity reduced

    Cons of monetary union:
    - Loss of monetary policy control - the EU use a 'one size fits all' blanket policy when not all countries are in a position for change
    - No potential for countries to alter Ex rates in times of need
    - Cost of currency conversion is high outside of the union
    - Lack of a fiscal union to tie it all up

    just incase it comes up however I find this question horrendous and will likely avoid it haha
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    (Original post by HCLx)
    Yeah we operate in the single market or common market (pretty sure they're the same thing anyway) - but yes everyone who uses the euro is part of the eurozone e.g. greece, spain, france

    Pros of Monetary unions are:
    - lower transaction costs
    - non-fluctuating ex rate
    - currency stable against speculation
    - increased business confidence
    - prices between countries easier to compare and PPP disparity reduced

    Cons of monetary union:
    - Loss of monetary policy control - the EU use a 'one size fits all' blanket policy when not all countries are in a position for change
    - No potential for countries to alter Ex rates in times of need
    - Cost of currency conversion is high outside of the union
    - Lack of a fiscal union to tie it all up

    just incase it comes up however I find this question horrendous and will likely avoid it haha
    I adore you
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    Im not ready at all.. Gonna be a long night..
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    LOL wouldn't it be funny if they messed with us and nothing on the EU even came up like.. something verrrrrry vague, not even a past question :'(
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    (Original post by Kitkat5)
    LOL wouldn't it be funny if they messed with us and nothing on the EU even came up like.. something verrrrrry vague, not even a past question :'(
    That would be good. A lot will have prepared for specific EU questions which is bad for me becauuse i havent prepared much :')
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    (Original post by BirdIsWord)
    Im not ready at all.. Gonna be a long night..
    Same; macroecon is my last exam and it's usually really easy so I reeaaaallyyy mismanaged my time today
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    (Original post by HCLx)
    Yeah we operate in the single market or common market (pretty sure they're the same thing anyway) - but yes everyone who uses the euro is part of the eurozone e.g. greece, spain, france

    Pros of Monetary unions are:
    - lower transaction costs
    - non-fluctuating ex rate
    - currency stable against speculation
    - increased business confidence
    - prices between countries easier to compare and PPP disparity reduced

    Cons of monetary union:
    - Loss of monetary policy control - the EU use a 'one size fits all' blanket policy when not all countries are in a position for change
    - No potential for countries to alter Ex rates in times of need
    - Cost of currency conversion is high outside of the union
    - Lack of a fiscal union to tie it all up

    just incase it comes up however I find this question horrendous and will likely avoid it haha
    Awesome comment, although just allow me to point out that 'cost of currency conversion is high outside of the union' should likely be an advantage, as currency conversion within the union would not cost as there would be no need for it.
 
 
 
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