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Yep it would.
No probs :smile:
The Sherminator
Yep it would.
No probs :smile:


would the whole AS curve shift outwards? or would the horizontal bit stay the same, but the vertical part move outward if you know what i mean :smile:
Horizontal stays the same. Its the bit where it starts curving which moves outward.
You can even draw the points of NAIRU on it and its useful when discussing unemployment and the Keynesian AS.
The Sherminator
Horizontal stays the same. Its the bit where it starts curving which moves outward.
You can even draw the points of NAIRU on it and its useful when discussing unemployment and the Keynesian AS.


sorry to ask agina but does the horizontal part of the AS curve ever move in any circumstances? my teacher says its ok to shift the whole AS curve in the exam in your not sure ( i do edexcel AS)
Reply 904
It shifts outward, sort of, I guess, in that it becomes longer, because the full employment level is now higher than before, and so you'll have a constant price level for higher levels of output than before the change in productivity (or whatever has affected your supply curve)
Reply 905
Question =

List 4 differences between the RPI and the RPIX
RPIX is RPI excluding mortgages thats all i know lol :smile:
Reply 907
lol yeah same here..

I have 2

1. RPI includes mortgage repayments, RPIX excludes mortgage repayments
2. RPI headline rate of inflation, RPIX underlying rate of inflation ( more reliable)
I don't remembering ever having done this....
We only used RPI here to measure inflation, a difference in syllabi?
The Sherminator
I don't remembering ever having done this....
We only used RPI here to measure inflation, a difference in syllabi?

Probably, we had RPI, RPIX, RPIY and CPI.
alex_hk90
Probably, we had RPI, RPIX, RPIY and CPI.


Are some of those UK specific measures?
RPI and CPI are the only measures I have heard of.
The Sherminator
Are some of those UK specific measures?
RPI and CPI are the only measures I have heard of.

I think RPIX and RPIY are UK specific, yes.
Reply 912
I have 2 questions:

1.) When it has something like "Index of dollar oil prices: Jan 2002 = 100", what does that mean? What is meant by the base year. This is a 2 marks question, how would I answer it perfectly to get my 2 marks.

2.) There is a question on oil prices which say what would be the effect on AS if oil prices rise. I say its shifts to the left as oil price is a production cost but I can't seem to justify why it would shift to the left. I wrote 'oil is a production cost of an increase in oil prices is likely to decrease AS as ... (What could I write?)'

Thanks in advance.
Reply 913
1) Jan 2002 is the base year. A price index normalises prices, setting the price level in one year equal to 100 (the base year, 2002 here) and then expressing all other years' prices relative to that. This is done by dividing through by the price level in the base year and multiplying by 100.

2) Because production costs have increased, then for any given price level, a lower quantity will be supplied. The AS curve depicts the relationship between prices and output supplied, so must shift inward to reflect this.
Reply 914
can anyone tell me the difference between consumer surplus and consumer welfare???Is there any difference????
Reply 915
If you're doing A level they're pretty much the same thing
How could they be defined differently Apagg? The only difference I can see is that surplus is used as an analytical concept on a demand/supply diagram whereas welfare is used on a more general level?
Reply 917
Apagg
If you're doing A level they're pretty much the same thing


well i'm givin my AS this june......o yeah do u have any notes regarding evaluation in unit 1,2 & 3........i wud realli appreciate it if u can send it....my add is [email protected] btw thnx......
Reply 918
I've long ago thrown away my A level notes I'm afraid, Herr Trunks.

How could they be defined differently Apagg? The only difference I can see is that surplus is used as an analytical concept on a demand/supply diagram whereas welfare is used on a more general level?


There are a number of different measures of welfare, consumer surplus is only one of them. If you take econ., to degree level you'll find out about compensating and equivalent variation. These measure welfare by finding out how much income you'd need to take from/give to the consumer to make him as happy after a price change as before it, or as happy before it as he would be after.
Apagg

There are a number of different measures of welfare, consumer surplus is only one of them. If you take econ., to degree level you'll find out about compensating and equivalent variation. These measure welfare by finding out how much income you'd need to take from/give to the consumer to make him as happy after a price change as before it, or as happy before it as he would be after.


:yy:
Thanks.

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