Economics HL

Am i the only person on this planet that has regretted taking econmics?
I know the exam is only next week but im starting to panic.

Everything was fine for the first year until we got to the multiplier effect, which i do not understand....since then its been going down hill....can someone please explain to me the balance of payments...it has like balance of trade deficit and everything and i have no idea what most of it is about.

I would appreciate any help given, because you could be helping others as well

accelerator is to do with the relation between investment and savings i think, whereas multiplier is to do with how income is related to investment. i havent touched economics in a few months, ill have to read up on it, ill get backt o you in a few days. in th meantime, try www.bized.ac.uk they have some pretty solid economics notes for the IB/A levels.

Any good suggestions on Economics revision? I'm really worried about my exams...I thought I was really doing well with it too...then we started macro.... Anyway, I feel better knowing I'm not the only one. Best of luck!!

Am i the only person on this planet that has regretted taking econmics?
I know the exam is only next week but im starting to panic.

Everything was fine for the first year until we got to the multiplier effect, which i do not understand....since then its been going down hill....can someone please explain to me the balance of payments...it has like balance of trade deficit and everything and i have no idea what most of it is about.

I would appreciate any help given, because you could be helping others as well

BURJE...jag e imponerade...hahaha...

BURJE...jag e imponerade...hahaha...

I do not regret taking economics . To clear some of your concerns...

The multiplier effect: A keynesian concept. Shows how an orginal investment grows larger as it circulates through the economy. This has to do with that if you spend money on e.g. construction work, this will not only give benefits to the construction itself but also to the people getting the job opportunities, the people supplying steel, the people making the steel etc. In this way, a 10 billion investment might give a total increase of 50 billion in the economy, e.g. a multiplier of 5. It can be calculated by 1/MPC or 1/leakages where leakages are MPS, MPT and MPM. I can explain this further but if you take standard level, this is more than enough.

Balance of Payments: Split up into two halves, current account and capital account (+balancing item). Current account dels with trade (visible and unvisible, i.e. goods and services) and profits/rents/dividends etc. Capital account deals with the rest. BoP must always equal 0! This means that a current account deficit is not all bad as then you must have a capital account surplus! this just shows that your country is comparably weaker in trade etc. However, in the LR a persistent current account deficit can be bad (has to do with currency depreciation and inflation etc).

Bring it on...this is good revision (havent yet started my revision, but feels okay)

I do not regret taking economics . To clear some of your concerns...

The multiplier effect: A keynesian concept. Shows how an orginal investment grows larger as it circulates through the economy. This has to do with that if you spend money on e.g. construction work, this will not only give benefits to the construction itself but also to the people getting the job opportunities, the people supplying steel, the people making the steel etc. In this way, a 10 billion investment might give a total increase of 50 billion in the economy, e.g. a multiplier of 5. It can be calculated by 1/MPC or 1/leakages where leakages are MPS, MPT and MPM. I can explain this further but if you take standard level, this is more than enough.

Balance of Payments: Split up into two halves, current account and capital account (+balancing item). Current account dels with trade (visible and unvisible, i.e. goods and services) and profits/rents/dividends etc. Capital account deals with the rest. BoP must always equal 0! This means that a current account deficit is not all bad as then you must have a capital account surplus! this just shows that your country is comparably weaker in trade etc. However, in the LR a persistent current account deficit can be bad (has to do with currency depreciation and inflation etc).

Bring it on...this is good revision (havent yet started my revision, but feels okay)

Let's not get too excited here.

Yes! I think we're all a little nervous about certain sections in the exam, especially all those higher level extensions. Just remember, that the examiner isn't going to pick you and your weaknesses out. The papers are largely balanced - so relax (although not to an end of complacency!!!)
May I suggest a brilliant textbook, although it's probably a little late now. "Economics from a Global Perspective" by Alan Glanville - a past IB economics examiner - worth every bent penny.

Good Luck.

J

anyways just to provide a slight correction
the multiplier is given as:
1/ (1-MPC)