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    (Original post by .Username.)
    Yeah, but they said one factor, therefore it is likely to mean more than one. A reduction in AD due to a global economic crises is one, because a fall in exports takes time to feed through and to affect the inflation rate (the inflation rate in 2009 was much lower)
    mate, the diagrams in the stimulus showed increasing inflation....so the graph had to show fall in gdp and increase in inflation
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    (Original post by Ollie Warwick)
    Hmm, I don't think that is correct, the question was pretty explicit in stating which other factors promoted Estonian economic growth. That said I feel there's still marks available for counter arguing international trade as driver.
    No, it was on the importance of trade, since trade is a large proportion of GDP, it should be mentioned. It didn't ask for other drivers of growth, otherwise it would have been a very broad question. Anyway, it's about what OCR feel, as to whether you are required to talk about trade or other factors, but take heed from the questions, not saying "Comment on whether trade is the most important driver of growth", but "the importance of international trade"
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    (Original post by Patrick077)
    Are you all aware that for the diagram question, GDP is not falling, but the rate at which GDP grows is, therefore growth is slower. We predicted the question in our class and noted that this might trick people out.
    but it was asking about 2008? which showed GDP went into -5% growth i.e. GDP fell (recession).
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    (Original post by Patrick077)
    Growth was around 7% in 2007, so it wouldn't be in a recession, 2009 would be a recession, In 2008 the economy would still be growing positively but just at slower rate. It was economic growth rate, not the actual level of GDP.
    Recession is defined as two consecutive quarters of negative growth. So it is unlikely they are able to catch us out if only yearly data is given..

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    (Original post by TheAvenger)
    No, it was on the importance of trade, since trade is a large proportion of GDP, it should be mentioned. It didn't ask for other drivers of growth, otherwise it would have been a very broad question. Anyway, it's about what OCR feel, as to whether you are required to talk about trade or other factors, but take heed from the questions, not saying "Comment on whether trade is the most important driver of growth", but "the importance of international trade"
    yeah it did say importance of international trade but you have to comment that it couldnt have been the only factor because other EU members (who receive the same benefits of trade) did not have as much success of growth. This should then lead you to talk about other factors which could have helped growth, no?
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    (Original post by jmunger)
    for the importance of international trade on growth i think it wanted you to talk about just trade otherwise it would have generally said "the causes of economic growth in estonia" and not specifically said international trade. So i tried to squeeze out a second point (i know it doesn't say estonia specialized but its still correct theory?) by saying that it would give estonia the ability to specialize blah blah blah would make their goods more competitive and increase X-M and AD? anyone that can confirm this was ok or that did this?
    I believe it was just on trade for the reason I mentioned above, but it seems open to debate. My view is that it would have said "comment on whether trade is the most important cause of growth". specialisation as a theory works.
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    (Original post by Infamous12)
    yeah it did say importance of international trade but you have to comment that it couldnt have been the only factor because other EU members (who receive the same benefits of trade) did not have as much success of growth. This should then lead you to talk about other factors which could have helped growth, no?
    Yeah, but i dont think it was as central to the question as some are making out.. I used it in the conclusion. Perhaps I am wrong but the general view at my school was this
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    (Original post by Patrick077)
    I think you've missed the point. The idea we got anyway in class and the teacher agreed, is that AD shifts to the right, inflation may be demand pull but most probably cost push inflation.
    But in 2008 there was clear negative economic growth? And a 10% increase in the price level?

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    (Original post by JOR2010)
    But in 2008 there was clear negative economic growth? And a 10% increase in the price level?

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    mate your right i do know why this guy is trying to say he is right when he is clearly wrong and he knows it. In 2008, growth was negative, not increasing at a slower rate.

    GDP was falling why inflation was increasing.
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    (Original post by Patrick077)
    I think you've missed the point. The idea we got anyway in class and the teacher agreed, is that AD shifts to the right, inflation may be demand pull but most probably cost push inflation.
    why are you truing to tell the other guy he is wrong, when in fact you are. Growth is negative so GDP is falling. GDP is falling an inflation is rising in 2008.
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    grade boundary predictions anyone ?

    also for 2b) the diagram question - i couldn't think of the diagram so i just wrote an explanation hoping it would get me some marks and then right at the end i worked out how to do it, shift inwards of AS and fall in AD but the explanation is completely irrelevant/wrong - would i get marks ?
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    Although the first question asked what was meant by fiscal and monetary convergence, I just defined what (economic) convergence meant and then went on to talk about the convergence criteria and their significance. How did others answer this?

    The question may be answered in a rather different way by describing the meaning of fiscal and monetary cycles (and economic cycles) between different economies seeking membership of the euro without any reference to the criteria.
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    Don't suppose anyone has a copy of the paper (photocopy) or knows all the questions to put them on here?
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    (Original post by jordan6278)
    mate your right i do know why this guy is trying to say he is right when he is clearly wrong and he knows it. In 2008, growth was negative, not increasing at a slower rate.

    GDP was falling why inflation was increasing.
    I think he means due to the excessive growth that occurred in 200-2007 it led to higher inflation in 2008 and due to the negative growth that occurred in 2008, the inflation rate fell in 2009 due to the time lag between growth and inflation
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    (Original post by jordan6278)
    why are you truing to tell the other guy he is wrong, when in fact you are. Growth is negative so GDP is falling. GDP is falling an inflation is rising in 2008.
    I think hes right to be fair, think there's only one way to get the mark though which is a decrease in lras
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    (Original post by Remeeeee)
    For the question that needed a diagram, (6 marks) i shifted my AD TO THE LEFT ?? due to lack of confidence and prices dropping, but i didn't shift my AS, would i still get some marks for noting that it was a recession?
    doubtful, that wouldn't cause a rise in inflation
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    (Original post by jordan6278)
    mate your right i do know why this guy is trying to say he is right when he is clearly wrong and he knows it. In 2008, growth was negative, not increasing at a slower rate.

    GDP was falling why inflation was increasing.
    He is right in a sense, but i think decreasing AS was the way to get the marks although i increased AD to show a rise in inflation cause i didnt read thenquestion properly and thought it was just asking about price levels
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    (Original post by c.ry)
    I think hes right to be fair, think there's only one way to get the mark though which is a decrease in lras
    I am not sure whether that is the only correct way of answering that question as I think there was another possibility - inward shifts in both AS and AD.

    There was a huge slump in consumption and investment as well as exports after the onset of the recession, leading to a fall in both domestic and external demand, shifting AD to the left and reducing both the level of national income and inflation.

    Consequently, due to aggregate demand being severely depressed, unemployment soared and this can be represented by an inward shift in AS. The effect of this was inflationary in terms of the price level and contractionary in terms of real GDP.
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    How did you guys structure the 20 marker essay?
    i did:
    - reasons why high growth leads to sustainability ( 2 reasons)
    - reasons why high growth does not lead to sustainability (like 4/5 reasons)
    -depends on how growth is achieved (3/4 reasons)
    -policies that could be used to achieve growth and sustainability (2/3 policies)
    -should consider focusing on slow growth in the future to achieve SD
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    (Original post by ghijk)
    I am not sure whether that is the only correct way of answering that question as I think there was another possibility - inward shifts in both AS and AD.

    There was a huge slump in consumption and investment as well as exports after the onset of the recession, leading to a fall in both domestic and external demand, shifting AD to the left and reducing both the level of national income and inflation.

    Consequently, due to aggregate demand being severely depressed, unemployment soared and this can be represented by an inward shift in AS. The effect of this was inflationary in terms of the price level and contractionary in terms of real GDP.
    this is what i did.
 
 
 
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