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    How did we all find it?
    Thought Section A was pretty difficult but Section B was alrite

    what did u guys think?
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    I thought it went ok but I picked the wrong question in section b and ran out of time which was my own fault. Section a wasn't too bad but can someone tell me what the relationship is between rate of unemployment and balance of trade in goods (part c)? I wrote something completely different to everyone else!
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    Isn't it that lower unemployment means that there is a higher real GDP and people have increased incomes. Therefore, as there is a high income import elasticity, the B of P will worsen?
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    Yeh I think you're right, that's not what i wrote though unfortunately...
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    I found it okay, it didn't seem much harder than module 2883 which I sat last week. Only thing was on section B I spent about 5 minutes trying to decide whether to go for question 2 or 4, in the end I went with 2. Also I found it difficult not to repeat what I had written on the 10-mark question whilst on the 15-mark question.
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    I did that too Kry, I think I answered part a quite well but in part b I was repeating a lot and ran out of time so I didn't really evaluate what they were asking.
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    I picked question 4 in section b which talked about a lowering of income tax rates. I said that thhis would cause an increase in inflation, increase in the multiplier, decrease in unemployment, a worsening in the BoP a rise in living standards, and a reduction in gov spending which would cause a fall in the health service. I also brought in the philips curve to demonstrate the relationship between unemployment and inflation anyone think that will be ok?
    One thing i didnt do tho was to bring in the laffer curve (arrrrgh!!!!) which i spent aaages revising but apart from that good exam =)
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    Sounds pretty good. I don't think the Laffer Curve is too important tho cuz its not directly related 2 the 4 macroeconomic goals (growth, unemployment, inflation, B of P).
    Agree with all ur points apart from inflation rising. It mite not because investment will incease and unemployment will decrease, which will probs shift out the AS curve too.
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    yes, the AS curve will shift out, but that will happen in the long run... i dunno about inflation occuring though, because the lowering of income tax could according to keynes increase output without inflation. Having said that though if you talked about the mulitplier like i did then it is likely that inflation will occur. i just brought in lots of evlatuation trying to gain the highest marks. Im wondering how you brought in the philips curve as thats montarist... did u talk about the effect on both the keynesian and monetarists theory of the economy?
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    I think that i simply taked about the monetarists as far as the multiplier, unemployment, (lowering the employment trap) and a worsening on the BoP and lower gov spending due to lower tax revenue. and i brought in the keynesian concerning the increase in invesment due to an increase in worker productivity therefore lowering unemployment aswell.

    I demonstrated the philips curve simply to quote the relationship between the rising inflation (due to the multiplier and increase in AD) and the lowering of unemployment (due to the employment trap lowering and the level of investment falling)
 
 
 
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