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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 DoubleOG)
    The question is basically saying how do you reduce unemployment excluding through the use of interest rates, so basically supply-side policy. Examples of points:
    - Reduction in corporation tax
    - Reduction in NMW
    - Infrastructure projects
    - Grants to small businesses

    Remember that although edexcel attempt to confuse you, the questions usually boil down to these 3 topics:
    Demand Side
    Supply-side
    Macro-conflicts

    So if you end up seeing a question, hopefully not, try relate it to one of these because I've never seen a 30 marker that does not come down to one, or multiple of these 3 topics.
    Thank you!

    However, I'm still confused because in theory (as shown by the Phillips curve) you can't have low unemployment and low inflation together?
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    If this exam is anything like the unit 1 paper... I'm f***ed. :banana2:
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    (Original post by dripper)
    What's the easiest way to tell quickly if a question is supply-side or demand-side
    Any takers
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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
    Furthermore privatisation may lead to private natural monopolies which are arguably worse than public sector monopolies because they are likely to charge higher prices that many low income households may not be able to afford.

    It depends on the sector in question.for example in the NHS...efficiency gains that are may be expected are less important if it means a good service is not provided...but in transport for example efficiency would be more important

    Sometimes the private sector have short terminsim problems. They may not take decisions that are best for society but instead may want quick methods of obtaining profits for the benefit of shareholders.

    Lastly...it's depends on the amount of competition in that industry.if there are lots of firms in the market already then privatisation increases competition and may result in greater effectiency and cheaper prices for consumers
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    Ok, im a bit confused can someone help me!
    1) How does change in sources of raw materails and increase in international trade cause the aggregate supply to shift outwards?
    2) How does absence of capital markets constraints economic growth?
    Thank you!
    PS how did u guys find unit 1? - I'm counting on unit 2 to save me, the time was too tight X(
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    (Original post by englandgirl1997)
    Thank you!

    However, I'm still confused because in theory (as shown by the Phillips curve) you can't have low unemployment and low inflation together?
    Yeah, that's in theory though, I think with the curve you basically use it when needed and ignore it when it's not, but honestly you should check with your teacher.
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    What is the difference between GNI and GNP?
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    how does investment increase ad in economy and can u also say it increase as in the long run
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    Well its a component of AD
    And in the long run it should actually shift AS because if it's investment in business they will be increasing the capital stock.

    Also infrastructure investment (very key this year was in the micro paper with cross rail) means that more jobs in economy more disposable income more consumption so AD up too
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    (Original post by Emmak26)
    Ok, im a bit confused can someone help me!
    1) How does change in sources of raw materails and increase in international trade cause the aggregate supply to shift outwards?
    2) How does absence of capital markets constraints economic growth?
    Thank you!
    PS how did u guys find unit 1? - I'm counting on unit 2 to save me, the time was too tight X(
    That is a really tricky one
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    Sorry Im a bit confused. The HDI - is one of the components GDP or GNI? Information has said that its changed to the GNI but I dont understanddddd
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    Hdi is measured with 3 components

    1) gni per capita which is PPP adjusted
    2) mean years of schooling
    3) life expectancy at birth

    All three have equal importance x:yes:
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    (Original post by falloutboyyy)
    Hdi is measured with 3 components

    1) gni per capita which is PPP adjusted
    2) mean years of schooling
    3) life expectancy at birth

    All three have equal importance x:yes:
    Thanks!!
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    If I write a lot of evaluation points but each of them is short (about 2 to 3 lines), will I get like 1 mark per point and get full evaluation mark?
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    (Original post by hank_the_tank)
    If I write a lot of evaluation points but each of them is short (about 2 to 3 lines), will I get like 1 mark per point and get full evaluation mark?
    You need to elaborate on the points you make to get top marks. You can't get full evaluation marks by just stating a point.

    Look at the mark schemes and examiner reports to see what is required for the evaluation marks.
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    (Original post by hank_the_tank)
    What is the difference between GNI and GNP?
    GNI is GDP plus net income from overseas investments and remittances.

    remittance is when people working outside of their home country send money they earn back home

    GDP is the total monetary value of national output produced in a given time period
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    Has there ever been a Unit 2 paper that doesn't have a 30 mark question involving either: Demand side policies (Fiscal/Monetary) or Supply side policies?
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    (Original post by AJC1997)
    Has there ever been a Unit 2 paper that doesn't have a 30 mark question involving either: Demand side policies (Fiscal/Monetary) or Supply side policies?
    I don't think so. There will always be at least one on policies.
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    Well
    Evaluate effects of a recession on economy

    And assess benefits of economic growth on uk

    And q's about conflicts of objectives
    Etc xx

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    How would you define an increase in living standards?
 
 
 
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