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Economics Unit 2 Edexcel - Managing the UK economy Tuesday 19th May 2015 (PM) Watch

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    (Original post by Achint10)
    all your points will be valid buddy,
    im trying to find more people who answered q1 to confirm what the question was actually asking :L because i remember looking back to it and thinking it was weirdly phrased, in that they were asking us to talk about conflicts with policies and objectives
    Yes, I thought that a lot would do Q1 but then turned out people do Q2 more.
    Looking back at the question I think that either way the answer will still be the same I guess?
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    (Original post by prepdream)
    Yes, I thought that a lot would do Q1 but then turned out people do Q2 more.
    Looking back at the question I think that either way the answer will still be the same I guess?
    the 30marker in q2 was nicer, but q1 overall seemed more doable to me
    and the answer would be the same more or less, except in my case i may not have mentioned the macroeconomic policy that the demand side policy was initially trying to achieve
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    what were the answers to the two 12 markers in question 2?
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    Question 1:

    a) Use Figure one to explain the decrease in the savings Ratio (8)
    -Interests rate fall
    -House price increase/consumer confidence

    b) Economic effects of rising house prices (12)
    -Increase spending
    -Increase confidence
    -Mortgage equity withdrawal increase
    -Growth
    -Fall in unemployment
    -Inflation rise

    c) Explain monetary policy (4)
    -Manipulation of r to control inflation
    -MPC independant
    -Transparency
    -Named target 2% ± 1%

    d) What do the MPC take into account when making interest rate decisions (8)
    -Level of consumer spending/growth
    -Exchange rate level

    e)Budget deficit effects on circular flow
    -Injection, government spending
    -Multiplier effect
    -Value of goods and services increase
    -Growth
    -Fall un unemployment

    f) Benefits of Low inflation (12)

    -Increased certainty, reduced uncertainty means investment increases as too does consumer S
    -Increased competitivity of Uk goods

    g) Demand side polices causing conflicting macro objectives (30)
    -Role of Fiscal policy for growth = G>T
    -Role of monetary policy to control inflation = Increase r
    -Economic growth vs Inflation
    -Inflation vs unemployment
    -Employment vs unemployment
    -Increase equality vs Decreased equality


    POINTS EXCLUDE EVALUATION.
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    (Original post by Achint10)
    the 30marker in q2 was nicer, but q1 overall seemed more doable to me
    and the answer would be the same more or less, except in my case i may not have mentioned the macroeconomic policy that the demand side policy was initially trying to achieve
    I did not even read Q2. I looked through Q1 and was like: Hell yeah and I will do this
    Yeah, I am thinking back to my essay. They can understand either I am talking about how demand-side policies lead to this and then leads to conflict with the objectives, or lead to conflicts between 2 macroeconomic objectives.
    But if you have diagram and definition and reference, you can still get 6/18 for KAA right? Although you didn't mention macroeconomic objectives?
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    How did everyone find that? Thought it was quite a nice paper. Did Q2 myself, all the questions were sound, whereas I didn't feel I could have wrote in as much detail for Q1.

    I'd predict the grade boundaries to be fairly high.
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    (Original post by prepdream)
    same here. Which points did you write?
    Ohhh I just wrote a policy, what it led to then said what it conflicted with on each paragraph ._.
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    For the question about poor productivity would unemployment be one effect?
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    For a change in investment I said that high interest rates would deter investment as the cost. Borrowing is high. I then evaluated this and said the UK decreased the interest rate to 0.5% from 2009, so investment would increase. Is that good enough for one point?
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    (Original post by AJC1997)
    same I filled up every page for it, it was just pure regurgitation of knowledge, didn't like the very first question though, was quite odd imo.
    I had to ask for another piece of paper at the end, did 5 pages total for the 30 marker on Q2. My writing was so bad at the end as I was trying to get all my evaluation points down.
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    (Original post by A-LevelEconomist)
    For a change in investment I said that high interest rates would deter investment as the cost. Borrowing is high. I then evaluated this and said the UK decreased the interest rate to 0.5% from 2009, so investment would increase. Is that good enough for one point?
    I hope so, that's one point I used. It costs businesses more money to borrow, so it's less attractive to take out a loan for an investment. Furthermore, saving any profits will benefit them due to higher interest being gained.

    My other point I spoke about business confidence.
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    (Original post by Ifuwinuwin)
    What was the first question in Q1? What did you guys write?

    I wrote about the increase in the savings ratio right at Quarter 3 but not onwards :s
    Yeah increase in savings ration in Quarter 3 and give data, then say it decreased and give reasons.
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    (Original post by .JC.)
    I hope so, that's one point I used. It costs businesses more money to borrow, so it's less attractive to take out a loan for an investment. Furthermore, saving any profits will benefit them due to higher interest being gained.

    My other point I spoke about business confidence.
    I was eager to use lower interest rates, but then I thought that everyone knows that the current rate is at 0.5% can it go any lower? So I used high corp tax, and high national minimum wage
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    My points for Q1 30 marker:
    Inflation/Balance Of Payments
    Economic Growth/Externalities
    Fiscal Defecit/Economic Growth

    Evaluation:
    Spare Capacity Argument
    If Investment component is affected most, shift not as great so pollution not as great
    Unemployment decrease in long run due to econ growth causes greater tax revenues

    Is this ok?
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    Who else did Q.1 lol? Seems I am the only one.. The 30 marker was soo nice
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    Is it just me or was Question 2 all about PRODUCTIVITY/REAL OUTPUT/Current Account Defecit?

    Either way, the supply side 30 marker was nice.
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    [QUOTE=MrDilanPatel;55976607]My points for Q1 30 marker:
    Inflation/Balance Of Payments
    Economic Growth/Externalities
    Fiscal Defecit/Economic Growth

    Not sure everyone I've asked has had different answers.
    Did you talk about policy aims?

    I linked conflicts to aims of polices eg. Growth from G>T is counteracted by Negative growth from increase in interest rates

    I probably got it wrong. Eva seems fine.
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    (Original post by badaman)
    Who else did Q.1 lol? Seems I am the only one.. The 30 marker was soo nice
    What did you say?
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    (Original post by badaman)
    Who else did Q.1 lol? Seems I am the only one.. The 30 marker was soo nice
    Me! OMG can say that I adore Q1 lol
    What did you write for 30 marker?
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    (Original post by .JC.)
    How did everyone find that? Thought it was quite a nice paper. Did Q2 myself, all the questions were sound, whereas I didn't feel I could have wrote in as much detail for Q1.

    I'd predict the grade boundaries to be fairly high.
    Yh i thought it was ok, i did Q2 as well! i thought i could talk about supplyside policies with real output better than about demand side policy
 
 
 
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