Aqa unit 2 economics friday 17 may 2013

Isnt providing alternativepoliices answering "ways in which the government could interveneto increase exports and reduce imports? The questiom stated how an increase in exports and reduction in imports would affect the uk economy; not how the government could use policies to increase exports

Question 16 = If the world economy goes into recession, this is likely to increase unemployment in the UK because :

A: The ability of other economies to supply UK industry with basic commodities will be reduced

B: The value of goods and services exported from the UK will fall

C : The price of oil and other raw materials is likely to rise

D : The value of the pound will fall on the foreign exchange market

Surely its B
a world recession means that most countries will not buy as much UK exports therefore the value of exports should fall in the UK, demand falls for UK exports, labour is a derived demand, if output falls, unemployment will rise....

Its not the accelerator. I'm 90% sure that the answer to 9 is D.

I might be wrong but I'm pretty sure its D

The answer is 1000% D. Multiplier is essentially change in a component of AD leading to a greater rise in national income. It doesn't mean all factors must rise, just the one. Investment is a factor of AD thus D is defiantly the answer

It's definitely B,if world economies are In recession, they are reluctant to spend money on goods and services abroad, so demand-deficient unemployment increases. It's the only logical answer.

It's definitely B,if world economies are In recession, they are reluctant to spend money on goods and services abroad, so demand-deficient unemployment increases. It's the only logical answer.

What has "The value of goods and services exported from the UK will fall" got to do with demand-deficit unemployment? Isn't B just another way of saying the currency will deprecate? If so, it implies the same thing as D and you know the answer isn't C because the question has nothing to do with oil, so you're left with A. That was my thought process-probably wrong-so if someone knows the answer please let me know.

EDIT: Ah, I think I miss-intercepted B. By the value of goods exports from the UK will fall, I thought they meant the value of UK goods and services in foreign currencies, but it actually meant the value of all of the goods leaving the UK, correct? Oh well, it's only one mark. The answer id defiantly B.
.

If raw material prices increase , then cost push inflation occurs , resulting in an increase in unemployment ?

For the 8 marker in context 2 I don't know whether I messed it up. For my first point I said that both balance of payments and current account were in deficit (negative figures) and gave dates and figures to back that up.

For The second point I gave the years where there were the biggest and smallest differences between balance of payments and current account. Giving dates and figures.

Is that okay for 8 marks?


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I don't quite understand what your point is. :s

i was just wondering for the 12 marker in context 1 what was the diagram??

I didn't do that question, but it sounds ok to me. As long as you quoted figures, which you said you did, and it is relevant enough, you should get the marks Hmmm looking back on it, I don't think it would be significant to say both the balance of payments and the current account were in deficit if they were always like that anyway. Was that the case, or were there situations showing them both in surplus?