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Economics AS Worries watch

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    Christina has posted here previously with some excellent information on Economics in general. I am now aware that her thread has become quite long and difficult to navigate. I am therefore opening up another thread for any worrie that you might have, particulary about Economics AS Level. Any questions you put in here, I will do my best to answer and we can all share our worries lol

    Tom
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    (Original post by tomlegge)
    Christina has posted here previously with some excellent information on Economics in general. I am now aware that her thread has become quite long and difficult to navigate. I am therefore opening up another thread for any worrie that you might have, particulary about Economics AS Level. Any questions you put in here, I will do my best to answer and we can all share our worries lol

    Tom
    aww how sweet thanx!
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    Great thread.

    1.) What is Cost-Push inflation?

    2.) What is Demand-Pull inflation?
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    soory, i don't actually study as economics but i will next year. How do you all find the as Level?
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    If you have questions about AS Economics I'll try to answer them, I did AS last year (edexcel).
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    Oh Oh!

    Cost push inflation: You must know aggregate demand and supply? And that inflation is when the price level increases.

    Cost push is when the AS has fallen to increase the price level

    Now guess what demand pull is.... (Hint. the price level will increase!)
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    (Original post by DazzaWazza)
    Great thread.

    1.) What is Cost-Push inflation?

    2.) What is Demand-Pull inflation?
    Cost push a Keynesian term, caused by lack of aggregate supply bringing up prices. If it difficult to cure but can be done with supply side policies aimed at raising productivity.

    Demand pull (also Keynesian) is caused by aggregate demand increasing and forcing buyers to bid up prices. It can be cured by reducing aggregate demand, usually done through a tight or contractionary fiscal policy (the Keynesian policy)
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    With economics bieng so close, how is everyone revising for it? I am personally reading through the key topics regularly and making a note of key words.

    Apparently you can get alot of marks from defining all the key terms in the question and drawing a diagram if relevent

    In one paper on Eco 3 you could get 7/15 for the last questions through definitions alone!!!
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    (Original post by mik1a)
    Cost push a Keynesian term, caused by lack of aggregate supply bringing up prices. If it difficult to cure but can be done with supply side policies aimed at raising productivity.

    Demand pull (also Keynesian) is caused by aggregate demand increasing and forcing buyers to bid up prices. It can be cured by reducing aggregate demand, usually done through a tight or contractionary fiscal policy (the Keynesian policy)
    Lots of posts :s Do you have to know anything about different types of economics? We havetn covered any of this... Isnt there Keynsian and classical or something?
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    (Original post by Womble548)
    With economics bieng so close, how is everyone revising for it? I am personally reading through the key topics regularly and making a note of key words.

    Apparently you can get alot of marks from defining all the key terms in the question and drawing a diagram if relevent

    In one paper on Eco 3 you could get 7/15 for the last questions through definitions alone!!!
    Thanks for the replies.

    Yeah ditto, that's what i'm doing, making sure i know key terms etc, i'm really nervous for Unit 3, really think i'm going to screw that section up!
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    (Original post by DazzaWazza)
    Great thread.

    1.) What is Cost-Push inflation?

    2.) What is Demand-Pull inflation?
    cost push: when the cost of raw materials go up or when governments place taxes on the goods produced, usually causes the cost of production to increase, this causing producers to push this price onto consumers causing inflation

    demand pull: when there is too much demand in the economy and not enough supply to cope with this excess demand, suppliers find it profitable to increase the price and still make profits.... this demand pulls up the price causing inflation
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    Looking throuhg Eco 3 papers you REALLY need to know alot about the 4 factor thingys in macroeconomics (need to remember the correct name)

    Inflation
    Unemployment
    Balance of Payments
    ??? What is this one ???
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    At AS you don't really have to know the differences between Keynesian and Monetarist/classical economics. They simple believe different things will happen. Keynes strongly believes cures could be done through changes in government spending thanks to the multiplier effect, but this assumes there is a multiplier effect - if the government spends an extra £10 on labour for trains, will that man spend £8 of the £10 he gets on food? Will the farmer get £6 of the £8 and spend £3 of that on a new tractor? etc...

    It's very complicated, and it is tied in with the velocity of money (I think - velocity is how long it spends under someone's bed before it gets spend again).

    Obviously conditions are constantly changing in economics in practice so neither has been proven correct in all circumstances. Just one some each one has its own strengths.

    (Original post by Womble548)
    Looking throuhg Eco 3 papers you REALLY need to know alot about the 4 factor thingys in macroeconomics (need to remember the correct name)

    Inflation
    Unemployment
    Balance of Payments
    ??? What is this one ???
    Economic growth.
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    (Original post by Womble548)
    Looking throuhg Eco 3 papers you REALLY need to know alot about the 4 factor thingys in macroeconomics (need to remember the correct name)

    Inflation
    Unemployment
    Balance of Payments
    ??? What is this one ???
    The four main Macro-economic Objectives;
    Inflation
    Unemployment
    Balance of Payments
    Economic Growth
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    Classical economists also believe that we operate at long run full employment.

    Could anyone explain the a) multiplier function and b) the accelerator function to me in simple terms??

    I know it should be me answering the questions but I am very hazy on both of these.

    Tom
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    (Original post by tomlegge)
    Classical economists also believe that we operate at long run full employment.

    Could anyone explain the a) multiplier function and b) the accelerator function to me in simple terms??

    I know it should be me answering the questions but I am very hazy on both of these.

    Tom
    Accelerator function? Maybe you mean the accelerator theory, which predicts how past changes in income affect a firm's investment.
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    thats what i meant - please explain someone
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    Tom - the accelerator function/theory is explained here:

    http://www.tutor2u.net/redir.asp?link=3155&tree=0

    Jim

    (Original post by tomlegge)
    thats what i meant - please explain someone
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    Free revision guides (just published) on the four macro objectives:

    Unemployment:
    http://www.tutor2u.net/economics/rev...employment.pdf

    Inflation:
    http://www.tutor2u.net/economics/rev..._Inflation.pdf

    Economic Growth
    http://www.tutor2u.net/economics/rev...mic_Growth.pdf

    BofP / Exchange rates:
    http://www.tutor2u.net/economics/rev...troduction.pdf

    Hope these help your revision

    Jim

    (Original post by DazzaWazza)
    The four main Macro-economic Objectives;
    Inflation
    Unemployment
    Balance of Payments
    Economic Growth
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    Apparently you can get alot of marks from defining all the key terms in the question and drawing a diagram if relevent

    Thats what my teacher said. If you really are stuck, or more likely with these papers, stuck for time (my big problem, any tips any1?) then just define every economic term in the multiple choice question and you can get away with pretty much 1/2 marks even if you get the key wrong. Of course, not a good idea to do this for every single question, but it does help loads.

    and in the mark schemes, you can get 2 marks just for drawing the right sort of diagram....only problem is that those can take ages to do

    Im really worried about edexcel economics 3 - im an A2 student, but i just really hate that paper. ive been doing my revision, pretty much know the concepts by now, like macroeconomics but can just never seem to get the right marks. And i need an A so my uni will accept me. Any ideas?
 
 
 
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