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F581/ F582 Economics June 2013 Watch

  • View Poll Results: How hard did we find this exam ?
    so hard i felt like crying through the exam
    13
    12.50%
    very difficult , but one or two were alright
    13
    12.50%
    fairly standard
    33
    31.73%
    quite easy , with one or two hard ones
    35
    33.65%
    so easy i felt like dancing throughout the exam
    10
    9.62%

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    (Original post by PrinceUpsb)
    Can anyone please explain how a positive output gap is possible? Think I have a grasp on it would like to hear some explanation though.
    Yes same here! im kind of confused with it. what situations where there be a positive output gap?
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    Thank you!
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    (Original post by wolalala)
    imagine if the 18 marker was on ' discuss whether a current account SURPLUS can be harmful to the economy? ahaha OCR would be mean! I guess you can say stuff like it can be harmful because a country with a current account surplus are reliant on the revenue of the exports, or they send all the goods abroad, so there may be fewer for them in the future- so economic instability. anything else ?
    Well I'd define what a surplus was and how it arises. High disposable incomes at home, weakness in the economy (the economy could be in recession) or a low exchange rate (although this would only happen for a short amount of time as the exchange rate would increase over time). Then I would talk about the negative effects. Weakness in the economy=unemployment. Inflation is likely to occur, demand pull. Expand on those two.
    Then evaluation, depends on how long the surplus lasts for, the size of the surplus as a percentage of GDP, what AS is doing. Plus because of inflation, in the long run the problem will eventually self correct
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    (Original post by wolalala)
    Yes same here! im kind of confused with it. what situations where there be a positive output gap?
    It is where actual growth is above trend growth, resulting in inflation. So it is where the AD curve will move up the LRAS curve, causing inflation due to a lack of spare capacity.
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    (Original post by PrinceUpsb)
    Can anyone please explain how a positive output gap is possible? Think I have a grasp on it would like to hear some explanation though.
    The textbook says this can occur for a short time if people work overtime, people who are usually not in the labour force enter it and machinery is used flat out
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    I highly doubt an evaluative question on AS will come up. It was only in January, they will pretty much definitely not repeat it.
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    (Original post by PrinceUpsb)
    I highly doubt an evaluative question on AS will come up. It was only in January, they will pretty much definitely not repeat it.
    nor one on a current account surplus, I hope!
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    (Original post by wolalala)
    Yes same here! im kind of confused with it. what situations where there be a positive output gap?
    a positive output gap is possible in the short run - if for example workers work overtime , perfect efficiency is achieved etc

    its an incredibly therotical concept and cannot be achieved in the long run - in the long run you can only have a negative output gap or a " 0 output gap " if you know what i mean - basically when the economy is operating at its productive potential ( i dunno how to describe that though )
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    (Original post by fletchdd02)
    nor one on a current account surplus, I hope!
    current account surplus would be horrible !

    Current account deficit i could handle after spending like 2 hours going over it yesterday haha
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    I no that this has been asked many times but what does everyone think the 18 marker will be on??
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    (Original post by heirloom)
    Well I'd define what a surplus was and how it arises. High disposable incomes at home, weakness in the economy (the economy could be in recession) or a low exchange rate (although this would only happen for a short amount of time as the exchange rate would increase over time). Then I would talk about the negative effects. Weakness in the economy=unemployment. Inflation is likely to occur, demand pull. Expand on those two.
    Then evaluation, depends on how long the surplus lasts for, the size of the surplus as a percentage of GDP, what AS is doing. Plus because of inflation, in the long run the problem will eventually self correct
    thankyou! hmm I see, could you talk about it depends on what's the position of the current account deficit?
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    (Original post by M.I.A)
    I no that this has been asked many times but what does everyone think the 18 marker will be on??
    I think on the balance of payments or unemployment, as they haven't came up, or maybe a decrease in AD???
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    (Original post by wolalala)
    thankyou! hmm I see, could you talk about it depends on what's the position of the current account deficit?
    What do you mean? Are you talking about if the financial and capital accounts are in deficit?
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    (Original post by heirloom)
    What do you mean? Are you talking about if the financial and capital accounts are in deficit?
    opps sorry, yes that's what I mean
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    (Original post by wolalala)
    opps sorry, yes that's what I mean
    Then yeah that would be an evaluative point
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    Silly question but what's the difference between evaluation and analysis?
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    (Original post by chelseafan)
    Silly question but what's the difference between evaluation and analysis?
    analysis is agreeing to the questions , evaluation is arguing against the questions ( to some extent)
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    (Original post by heirloom)
    Then yeah that would be an evaluative point
    ah cool, thank you
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    Balance of payments, unemployment, inflation or economic growth as the lady question?
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    Hows everyone doing , im just doing past papers at the momement
 
 
 
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