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

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    would anyone mind looking at this paper i completed? im getting fed up with self marking as im either feeling too harsh or too easy on myself
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    Can someone please explain 'qunatative easing' and how we could use it in our answers?
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    (Original post by falloutboyyy)
    Hey again
    Could you explain the lorenz curve and almost another model paragraph of how I'd use it, you're amazing ♡

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    Put the evaluation when talking about the effects of a shift in aggregate demand, when you mention the changes in the price level and real output
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    (Original post by zaini101)
    Can someone please explain 'qunatative easing' and how we could use it in our answers?
    Bank creates electronic money to buy bond. As demand for bond goes up, so does the price. Thus, the yield will go down (long term interest rates decreases). This increases consumption, investment and also leads to a depreciation in exchange rate and push export.
    You can use it if asked about monetary policy, as it is one of the monetary policies.
    P/s: I am sorry if my explanation is difficult to understand or anything. If you can not understand it, I suggest going to Bank of England website to read more or watch its video about "Quantitative Easing". Easy to understand and quite entertaining imo.
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    Completly agree although there doesn't seem to be as much to remember so that's a positive
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    Could someone tell me all the transmission mechanisms pl0x
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    What for like every questions?! That take forever

    I'll tell you specific ones like if u want about IR or about fiscal policy etc affecting something
    Like it depends on the question hun x

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    (Original post by jshep000)
    Could someone tell me all the transmission mechanisms pl0x
    Same here..
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    Could someone give me a good evaluation oint on Privatisation as a supply side policy to increases economic growth please
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    (Original post by Aceofspades2468)
    Could someone give me a good evaluation oint on Privatisation as a supply side policy to increases economic growth please
    Hi, privatisation will lead to unemployment. This is because when there is privatisation, firms are competing with each other to attract consumers and make profits. Consequently, competitiveness increases and some firms will either sack some of its employees (to lower production cost) or exit the market (if it can not compete anymore.
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    (Original post by Aceofspades2468)
    Could someone give me a good evaluation oint on Privatisation as a supply side policy to increases economic growth please
    Or alternatively
    You could say there is not much scope left in the UK for privatisation of firms and therefore this supply side policy isn't one that can be used much

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    (Original post by jshep000)
    Could someone tell me all the transmission mechanisms pl0x
    what do you mean
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    (Original post by fatimazahid)
    would anyone mind looking at this paper i completed? im getting fed up with self marking as im either feeling too harsh or too easy on myself
    send it to me and I'll have a look
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    (Original post by dripper)
    Same here..
    (Original post by jshep000)
    Could someone tell me all the transmission mechanisms pl0x
    Transmission mechanism is how interest rates affect AD, through what basically.

    1) Investment - as interest rates decrease, capital equipment is more affordable, thus investment goes up, increasing aggregate demand.

    2) Consumption - as interest rate goes down, cheaper to borrow money, increase in consumption, thus AD.

    3) Also via house prices, lower interest rates means that demand for housing goes up, thus wealth effect > increase in consumer confidence/spending further increase in AD.

    Transmission mechanism simply looks at what causes AD to change
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    (Original post by member1753327)
    Transmission mechanism is how interest rates affect AD, through what basically.

    1) Investment - as interest rates decrease, capital equipment is more affordable, thus investment goes up, increasing aggregate demand.

    2) Consumption - as interest rate goes down, cheaper to borrow money, increase in consumption, thus AD.

    3) Also via house prices, lower interest rates means that demand for housing goes up, thus wealth effect > increase in consumer confidence/spending further increase in AD.

    Transmission mechanism simply looks at what causes AD to change
    Cheers lad, would rep but prsom
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    (Original post by prepdream)
    Bank creates electronic money to buy bond. As demand for bond goes up, so does the price. Thus, the yield will go down (long term interest rates decreases). This increases consumption, investment and also leads to a depreciation in exchange rate and push export.
    You can use it if asked about monetary policy, as it is one of the monetary policies.
    P/s: I am sorry if my explanation is difficult to understand or anything. If you can not understand it, I suggest going to Bank of England website to read more or watch its video about "Quantitative Easing". Easy to understand and quite entertaining imo.

    Thank you.
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    How do you evaluate the trade-off between unemployment and inflation
    Using the phillips curve.
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    Does anyone have any predictions about what the questions will be based on?
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    how does inflation cause unemployment??
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    (Original post by Gwen President)
    How do you evaluate the trade-off between unemployment and inflation
    Using the phillips curve.
    (Original post by barbiex)
    how does inflation cause unemployment??


    More employment = more inflation, as the general price level increases since consumers have more disposable income increasing AD

    However, increased inflation, could lead to stagflation if the economy is not growing enough and workers would demand higher wages since purchasing power has fallen forcing companies to lay off workers leading to a rise in unemployment.
 
 
 
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