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    I had mastered micro but macro seems a bit overwhelming. Any advise to tackle and revise it?
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    (Original post by High Stakes)
    I had mastered micro but macro seems a bit overwhelming. Any advise to tackle and revise it?

    My best bets especially after throwing sneaky questions in our micro exam that its probably going be something along the lines of increasing UK exports--> and away from consumption of imports...

    either way if any export/import question appears some useful things to talk about would be the following.

    Current Eurozone economies ( in recession as we know)
    - inflation rates in both the uk and competing Eurozone markets
    - Our investment in our underdeveloped and uncompetitive exporting markets ( I have some good stats for this one)
    - The exchange rate
    - Inflation rate ( as we know currently 0.00 %)= and what impact this has on firm investment in r+D and also how consumers spend their money
    - KEY MACROECONOMIC OBJECTVIES

    possible supply side policies- positives--> productive efficiency
    also the cons such as
    - negative output gap getting wider
    -current budget deficit
    - the idea with inflation being so low firms are unlikely to invest due to fearing the value of their goods/services will go down
    - time lags
    - the interest rate is already so low so if an expansionary monetary policy was emplaced its unlikely to have much of an affect--> liquidity trap



    TBH there are a lot of variations that could come up. Personally this is my best bet :/ but idk....

    just make sure to include this in your structure

    2 definitions
    Quote from extract for your first point--> evaluate and so on

    Graph to support your argument.

    Try to do this again ( with a supporting graph) and lots of evaluation

    Go for another point ( maybe a weaker one.. which doesn't require a graph)

    come to an conclusion.
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    the answer is B, but isn't saving a component on AD? or is that just consumer spending thus they don't consider the answer A, anyone?
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    Investment is a component not saving
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    oh of course, my bad, thanks
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    (Original post by Aaron.farr)
    Investment is a component not saving



    hey, any idea how to do this? by "output of capital" does that mean there are more capital good's being produced or does it mean capital goods are producing more?
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    (Original post by cmmary)



    hey, any idea how to do this? by "output of capital" does that mean there are more capital good's being produced or does it mean capital goods are producing more?
    Would the answer be B?
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    (Original post by High Stakes)
    Would the answer be B?
    Yes, that's correct
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    (Original post by Renzhi10122)
    Yes, that's correct
    i meantwhy is the answer B, i can't work it out D:
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    It means the amount of goods (consumer goods) that the capital goods will provide. In the short run it will decrease because it will move along the PPF diagram from more consumer goods to more capital goods however and increase in capital goods means that in the future more consumer goods can be produced (output)
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    (Original post by Aaron.farr)
    It means the amount of goods (consumer goods) that the capital goods will provide. In the short run it will decrease because it will move along the PPF diagram from more consumer goods to more capital goods however and increase in capital goods means that in the future more consumer goods can be produced (output)
    Hmm, not exactly. The rate of economic growth does not change in the present since AD doesn't change much (I up and C down). It's not the same as the rate at which amount of consumer goods increases. Changes happen in the long run, where increased investment results in improved productivity.
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    Does anyone know if the trend rate of growth of an economy is basically the same as the LRAS?
 
 
 

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