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

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Reply 580
Avatar for .JC.
.JC.
14
Original post by member1753327
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


I used that to evaluate. I said that the graph showed fluctuations in investment, which would 'suggest' that interest rates fluctuated. I stated that they have remained at 0.5% for a while now (throughout the timescale in question), which means they may not have actually had such a large effect.
Reply 581
Avatar for Jemy
Jemy
11
Original post by prepdream
Wait, so if it is like that, you can still say something like decrease in tax means high employment but conflict with BoP right?


Taxes? Wait what? The question was on demand side policies, you know that right?
Original post by prepdream
Me! :biggrin: OMG can say that I adore Q1 lol
What did you write for 30 marker?


I did Economic Growth vs Environment.
Economic Growth vs Balance of Payments.
Inflation vs Unemployment.
Inflation vs Economic Growth.

How about you ? :biggrin:
Original post by .JC.
I used that to evaluate. I said that the graph showed fluctuations in investment, which would 'suggest' that interest rates fluctuated. I stated that they have remained at 0.5% for a while now (throughout the timescale in question), which means they may not have actually had such a large effect.


It was an 8 marker there was no evaluation
Original post by Jemy
Taxes? Wait what? The question was on demand side policies, you know that right?


Decrease in tax is fiscal policy, which is in demand-side policy?
Original post by prepdream
Decrease in tax is fiscal policy, which is in demand-side policy?


Yes it is an expansionary fiscal policy which increases AD
Original post by badaman
I did Economic Growth vs Environment.
Economic Growth vs Balance of Payments.
Inflation vs Unemployment.
Inflation vs Economic Growth.

How about you ? :biggrin:


I wrote decrease in income tax increases consumption then AD then employment. Say it will cause inflation and current account deficit.
Decrease in interest rates mean depreciation in exchange rate. Improve current account but may cause demand pull inflation.
Quantitative easing means lower interest rates -> more investment -> econ growth but pollution
These are my KAA points.
Do you think they all seem valid? :biggrin:
Anyone write about investing in training for LT unemployed, subsidies for businesses or infastructure for the q2 30 marker?
Original post by A-LevelEconomist
Yes it is an expansionary fiscal policy which increases AD


Okay, thank you :biggrin: apparently it is in demand-side policies, but the comment made me panicked for half a second -_-
Reply 589
Avatar for .JC.
.JC.
14
Original post by member1753327
It was an 8 marker there was no evaluation


Haha well I wasn't sure in the exam so better to include one than not.
Reply 590
Avatar for agg98
agg98
How many people did question 1
lol as if i forgot to put an 'X' in the box of the question i answered. hahahahah . banter.
Original post by prepdream
I wrote decrease in income tax increases consumption then AD then employment. Say it will cause inflation and current account deficit.
Decrease in interest rates mean depreciation in exchange rate. Improve current account but may cause demand pull inflation.
Quantitative easing means lower interest rates -> more investment -> econ growth but pollution
These are my KAA points.
Do you think they all seem valid? :biggrin:


Should be haha! How did you find the other questions?
Reply 593
Avatar for Jemy
Jemy
11
Original post by badaman
I did Economic Growth vs Environment.
Economic Growth vs Balance of Payments.
Inflation vs Unemployment.
Inflation vs Economic Growth.

How about you ? :biggrin:


Was the question about the conflicts created by demand side policies or the macroeconomic conflicts by demand side policies? Because I did the latter....

If so, would I still score something okay? I evaluated demand side policies conflicts with inflation, balance of payments and the environment...
Original post by badaman
Should be haha! How did you find the other questions?


They are all alright in my opinion. The housing prices did scare me at first when I glanced at it, but then it was alright too.
Hope they will be all fine, unless I made some stupid mistakes :tongue:
How about you?
for question 1 the 30 marker

definition of demand side policies and list of marco objectives this usually gets you 6 marks.
then i sed if they used contractionary fiscal this could effect unemployment and economic growth
then i sed however to meets the objectives of inflation and b of payments
using expansionary fiscal will conflict with inflation and b of payments

then i sed using contractionary monetary this will effect unemployment and growth
however it meets low inflation and b of payments
expansionary monetary effects inflation and b of payments but meets low unemployment and growth

then i sed this all depends on the situation in the current economy in the uk and how govt have to trade off between objectives which is more important low inflation or high growth

anyone get something like this?
Original post by Jemy
Was the question about the conflicts created by demand side policies or the macroeconomic conflicts by demand side policies? Because I did the latter....

If so, would I still score something okay? I evaluated demand side policies conflicts with inflation, balance of payments and the environment...


Nah it was how demand side policies would LEAD to macroeconomic policies so you would have explain the policy and state which macroeconomic objective it fulfilled and then say which it conflicted then evaluate...
Original post by 98panashe
lol as if i forgot to put an 'X' in the box of the question i answered. hahahahah . banter.


I've never done that for any edexcel exam in my life.
Original post by prepdream
They are all alright in my opinion. The housing prices did scare me at first when I glanced at it, but then it was alright too.
Hope they will be all fine, unless I made some stupid mistakes :tongue:
How about you?


Yeah decent too! Glad its over tbh.
Reply 599
Avatar for agg98
agg98
Can ne reply woth the questions to question 2

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