pythagorean
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"In May 2008 the governor of the Bank of England spoke of the need for the uk economy to move away from spending and importing towards saving and exporting"

"Evaluate the consequences for uk unemployment if this movement were to occur." (25 marks)

Have no idea how to do this essay. Can anyone help ???!
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dan94adibi
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(Original post by pythagorean)
"In May 2008 the governor of the Bank of England spoke of the need for the uk economy to move away from spending and importing towards saving and exporting"

"Evaluate the consequences for uk unemployment if this movement were to occur." (25 marks)

Have no idea how to do this essay. Can anyone help ???!
I would start by talking about the tools at the Governor's disposal.

Obviously this would concern monetary policy (define it) and monetary policy involves the repo rate and money supply. To increase marks you can perhaps mention what the current repo rate is.

The question concerns unemployment - I would also define this too. Simply the number of people able and willing to work at the current wage rate but cannot find employment and it's measured by ILO.

And from here you can go on and explain the policies....

Hope this helps
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gr8wizard10
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(Original post by pythagorean)
"In May 2008 the governor of the Bank of England spoke of the need for the uk economy to move away from spending and importing towards saving and exporting"

"Evaluate the consequences for uk unemployment if this movement were to occur." (25 marks)

Have no idea how to do this essay. Can anyone help ???!
Structure:

-2 solid definitions explaining the relevant keywords the question is asking (backed with examples if applicable)

Define Unemployment/ Monetary policy


-An introduction to the topic at hand, depending on whether it's macro refer back to macroeconomic objectives.

This question tries to address unemployment/balance of trade


-1st Diagram / Explanation of what's happening (from the text)
-Analysis of first diagram, (Chain Links) words such as 'therefore, in hindsight'
-Evaluation of first diagram, words such as 'although, other factors effect' talk about stakeholder's affected
(Evaluation is where you use you're own knowledge to assess the impact of the ongoing of your analysis)

Possibly your first diagram may be AD increase from increased exports. from raising interest rates from the back of England. Discourages spending. (Demand side policy)

Then analysis what that has the potential to do. i.e Multiplier, decrease unemployment, accelerator.. would help tackle unemployment objective etc..

However evaluation with drawbacks would be could be inflationary (Keynesian diagram/phillips curve); results in a trade off. NAIRU/LRPC suggests Long-term downsides if operating near productive potential.


-2nd Diagram / Explanation of what's happening (from the text)
-Analysis of second diagram
-Evaluation of second diagram

Increasing direct tax would reduce spending. (Supply side policy)

Laffer Curve to show increased tax revenue. Contractionary Fiscal policy, increase tax, decrease Gov spending Possibly have budget surplus (applicable to current situation) help with UK budget deficit etc..

Evaluate: This may discourage workers in the Long-run, real wage unemployment if Tax revenue is too high. Benefit trap, possibly less productive. Firms would be less willing to employ if corporation tax increases. Could result in cyclical unemployment.


-3rd Diagram / Explanation of what's happening (from the text)
-Analysis of second diagram
-Evaluation of second diagram

Any other methods of how to go about having a withdrawal from the circular flow of income.

-Conclusion
This is where you weigh up your argument to come to a finalized conclusion; taking into account you're evaluation of the 3 Analysis points you've made. You say what overall effects may occur, the effect on the economy and add relevant concluding factors in regard to the question. Argue different viewpoints and say which you think has the higher weighting. ALWAYS DIRECT YOU'RE ANSWER TO WHAT THE QUESTION IS ASKING.

Weigh up the arguments.. Benefits/Disadvantages. Evaluate the Long-term benefit/consequences and compare them to short term. Cost/Benefit Analysis of the governments plan.

Hope this gives somewhat a basic structure of how to approach the question.
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pythagorean
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(Original post by Abdul-Karim)
Structure:

-2 solid definitions explaining the relevant keywords the question is asking (backed with examples if applicable)

Define Unemployment/ Monetary policy


-An introduction to the topic at hand, depending on whether it's macro refer back to macroeconomic objectives.

This question tries to address unemployment/balance of trade


-1st Diagram / Explanation of what's happening (from the text)
-Analysis of first diagram, (Chain Links) words such as 'therefore, in hindsight'
-Evaluation of first diagram, words such as 'although, other factors effect' talk about stakeholder's affected
(Evaluation is where you use you're own knowledge to assess the impact of the ongoing of your analysis)

Possibly your first diagram may be AD increase from increased exports. from raising interest rates from the back of England. Discourages spending. (Demand side policy)

Then analysis what that has the potential to do. i.e Multiplier, decrease unemployment, accelerator.. would help tackle unemployment objective etc..

However evaluation with drawbacks would be could be inflationary (Keynesian diagram/phillips curve); results in a trade off. NAIRU/LRPC suggests Long-term downsides if operating near productive potential.


-2nd Diagram / Explanation of what's happening (from the text)
-Analysis of second diagram
-Evaluation of second diagram

Increasing direct tax would reduce spending. (Supply side policy)

Laffer Curve to show increased tax revenue. Contractionary Fiscal policy, increase tax, decrease Gov spending Possibly have budget surplus (applicable to current situation) help with UK budget deficit etc..

Evaluate: This may discourage workers in the Long-run, real wage unemployment if Tax revenue is too high. Benefit trap, possibly less productive. Firms would be less willing to employ if corporation tax increases. Could result in cyclical unemployment.


-3rd Diagram / Explanation of what's happening (from the text)
-Analysis of second diagram
-Evaluation of second diagram

Any other methods of how to go about having a withdrawal from the circular flow of income.

-Conclusion
This is where you weigh up your argument to come to a finalized conclusion; taking into account you're evaluation of the 3 Analysis points you've made. You say what overall effects may occur, the effect on the economy and add relevant concluding factors in regard to the question. Argue different viewpoints and say which you think has the higher weighting. ALWAYS DIRECT YOU'RE ANSWER TO WHAT THE QUESTION IS ASKING.

Weigh up the arguments.. Benefits/Disadvantages. Evaluate the Long-term benefit/consequences and compare them to short term. Cost/Benefit Analysis of the governments plan.

Hope this gives somewhat a basic structure of how to approach the question.
Thank you so much!!! This has cleared things up a lot.
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gr8wizard10
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(Original post by pythagorean)
Thank you so much!!! This has cleared things up a lot.
No worries, glad I could be of assistance.
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