F581/ F582 Economics June 2013

I'm gutted that I didn't write about demand pull and cost push inflation. But I wrote about absolute advantage (such as oil producing countries) and how those economies would not experience a fall in inflation because demand will still continue to exceed supply.

Reply 601

christanmu

9

Original post by charlottecoleman

Anyone for the causes of inflation get:
1. An increase in wages means more disposable income to spend thus increasing consumer expenditure, increasing AD therefore creating demand-pull inflation.
2. An increase in borrowing from bank (can't remember exact term used) would mean cost more to borrow and invest therefore creating cost-push inflation.

Worrying that I got the demand-pull and cost-push the wrong way round?

I got - as people get higher wages they have a higher real disposable income which allows them so spend more which will push up AD and cause demand-pull inflation.
Then the banks lending money means people can again spend more which leads to further demand-pull inflation.

I got teacher approval on this one, it was one of the ones I asked him!

Reply 602

username1053693

1

For the value of investment, did everyone just simply divide investment level by 100 and x40? And get 2,000 something?

Reply 603

christanmu

9

Original post by lufc_dan

For the value of investment, did everyone just simply divide investment level by 100 and x40? And get 2,000 something?

yeaaaap!

Reply 604

username1053693

1

Original post by christanmu

yeaaaap!

Good stuff. Wish I could just find out my grade. Hate waiting about.

Reply 605

christanmu

9

Original post by lufc_dan

Good stuff. Wish I could just find out my grade. Hate waiting about.

Have to nail micro too obviously!

Reply 606

SherlockHolmes

13

For the question asking for two causes of inflation, would I lose marks for not stating 'demand-pull' and 'cost-push' despite mentioning the shifts in AD and AS?

Reply 607

username963570

OP

21

My god , i failed that.

Reply 608

username1053693

1

Original post by Fas

My god , i failed that.

could you start a poll so we can vote on how we found it please

Reply 609

AtotheT

Original post by christanmu

I am incredibly less confident now than I was before...

don't worry about it mate, nearly everyone feels that way. you'll do fine :P what grade are you aiming for?

Reply 610

Waddsy

7

Now getting slightly worried on the causes of inflation question. In the case study it said consumption increased in China- I said as demand for firms goods / services increased prices would be raised which would cause demand pull inflation. No-one else seems to have that!

Reply 611

AtotheT

Original post by SherlockHolmes

For the question asking for two causes of inflation, would I lose marks for not stating 'demand-pull' and 'cost-push' despite mentioning the shifts in AD and AS?

I'd suspect not, as long as your answer is clear and makes sense you should get the marks. It's not asking for types of inflation, but the causes. Didn't you have to use the case study as-well So that backs up my point :P

Reply 612

AtotheT

Original post by christanmu

yeaaaap!

yeah i did x 0.4

Reply 613

username963570

OP

21

for the causes of inflation i got - rise in wages causes demand-pull and cost-push inflation ( i'm just that cool i put both down )

then i put one to do with increased bank lending - incentivsing consumers to borrow more which they would spend on goods and services , increasing AD in the economy hence causing demand-pull inflation.

In fairness , everything uptill the essay im 100% certain i got full marks on hahaha

the essay though............

Reply 614

Robbie242

Original post by Fas

for the causes of inflation i got - rise in wages causes demand-pull and cost-push inflation ( i'm just that cool i put both down )

then i put one to do with increased bank lending - incentivsing consumers to borrow more which they would spend on goods and services , increasing AD in the economy hence causing demand-pull inflation.

In fairness , everything uptill the essay im 100% certain i got full marks on hahaha

the essay though............

It was nearly a balance of payments question but it just about avoided it, I thought of evaluative points but not sure if some of them are entirely correct, ended up writing masses as well. Can't believe I messed up the maths question though for china/japan :P. Loved the explain/describe questions though, nice and easy to tackle

Reply 615

Nerd2

18

Original post by christanmu

I am incredibly less confident now than I was before...

Don't worry about a thing, cuz every little thing gonna be alright :smile:

Reply 616

GeorgeBarrett1

What did anyone put for the question which said should unemployment be the main target for governments? Or something like that

Posted from TSR Mobile

Reply 617

mrdan

7

Did anyone draw a demand and supply diagram for the 18 marker in order to show how the price of a currency is determined? I didn't but loads of my friends said that did??? all i put was an AD/AS diagram

Reply 618

username963570

OP

21

Original post by Robbie242

It was nearly a balance of payments question but it just about avoided it, I thought of evaluative points but not sure if some of them are entirely correct, ended up writing masses as well. Can't believe I messed up the maths question though for china/japan :P. Loved the explain/describe questions though, nice and easy to tackle

hahahaha THANKFULLY i managed to avoid that trap ! the obvious point about that essay was the whole demand-side argument which i did write about , like how a rise in exchange rate would lead to increase in price of exports and decrease in price of imports but then i talked about a pretty complex point about supply... which wasn't entirely wrong just not the best point to make.

reckon i'll have dropped a couple of marks on the first 42 marks ( despite my confidence lol ) + got 10-11/18 on the essay so hopefully around the 50 mark , bout 85 ums should be fine.

haha how'd you mess up the calculations , they were the best bits of the paper i thought ! i got that Japan had an average income of 45000 as compared to China's 4800 ( Japan is higher ) and i got investment to be 2572 billion dollars or something like that lol cant remember exactly

Reply 619

Robbie242

Original post by Fas

hahahaha THANKFULLY i managed to avoid that trap ! the obvious point about that essay was the whole demand-side argument which i did write about , like how a rise in exchange rate would lead to increase in price of exports and decrease in price of imports but then i talked about a pretty complex point about supply... which wasn't entirely wrong just not the best point to make.

reckon i'll have dropped a couple of marks on the first 42 marks ( despite my confidence lol ) + got 10-11/18 on the essay so hopefully around the 50 mark , bout 85 ums should be fine.

haha how'd you mess up the calculations , they were the best bits of the paper i thought ! i got that Japan had an average income of 45000 as compared to China's 4800 ( Japan is higher ) and i got investment to be 2572 billion dollars or something like that lol cant remember exactly

Yeah same, I mentioned that if a large amount of goods have already being produced, but there are high prices for exports, and less purchases = less profits -> cost push inflation
I also banged on about a fall in AD causing a fall in unemployment increasing the amount of govt spending devoted to unemployment benefit increasing demand pull inflation
I had lots of evaluation and I thought it was decent but I hope I did bore the examiner

I got the investment contribution right but the Japan one, shows that I clearly can't differentiate by a billion and a million, ended up getting $48 for china and $45 for Japan lol just messed it up completely only 2 marks though.

Yeah same, though I suppose judging on this papers difficulty the boundary for an A will be 46 or 47 so it could be higher than 85ums (for your prediction)

(edited 10 years ago)

F581/ F582 Economics June 2013

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