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Official Edexcel Economics A Unit 2:The UK Economy- Performance and Policies - 23 May

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Reply 40

xJaayyy

Original post by Sam_99

I not sure, I think I am and then 2 seconds later I'm like no I'm not :s-smilie:

what about you :wink:

I was much more prepared for Micro, but I feel like this went a little better! How did it go for you? :smile:

Reply 41

benjo456

Original post by xJaayyy

Mixed feelings about this one, seemed to focus a lot on inflation! I did the second 20 marker and linked the Financial Crisis with Fiscal Policy and slightly touched on Monetary Policy. The 15 marker was kinda strange also.

I wrote a fair bit on Quantitative Easing as it was a demand side policy first used because of the financial crisis (lowering interest rates wasnt boosting spending)

Reply 42

xJaayyy

Original post by benjo456

I wrote a fair bit on Quantitative Easing as it was a demand side policy first used because of the financial crisis (lowering interest rates wasnt boosting spending)

Yeah, sounds correct but I was in a hurry and those two demand policies came to mind!

Reply 43

XBen1999

Think I messed up the 10 marker, put about reduction in consumer confidence so they will save rather than spend instead of putting about a reduction in disposable income 😓

Reply 44

unimaginable118

what did everyone write for the 2nd 30 marker?

Reply 45

lpjjohnson

Original post by unimaginable118

what did everyone write for the 2nd 30 marker?

30 marker? Don't you mean 20??

Reply 46

Dabiri

Original post by unimaginable118

what did everyone write for the 2nd 30 marker?

I basically talked about expansionary monetary and fiscal policy and included under fiscal the idea about the liquidity trap and using quantitative easing to help solve it.
For eval for monetary policy I discussed that if animal spirits and confidence is low then decreasing interest rates won't affect long and short term investment and consumption
For eval for fiscal - I put opportunity cost, for increased government spending and the fact the it would create budget deficit as taxation also reduces which would affect macroeconomic objectives and national debt. But then I further evaluated by saying that budget deficit is only 3.8% of GDP.
How many marks will I get???

Reply 47

TheProKi

Ahhh ffs, the 20 marker at the end i think i chose the wrong 20 marker because i was talking about fiscal policy and monetary policy however the question asked for "If MPC were successful with controlling inflation". I had said they had managed to control in 2011 however they couldnt in 2015 as it was below 1% which is deflation and then i just talked about the policies on how to resolve it... :frown:

**** i shouldve chose the second question ffs.. do you think i'll get any marks?

Reply 48

xJaayyy

Original post by Dabiri

Seems very solid! I'd give that 15+

Reply 49

Dabiri

Original post by xJaayyy

Seems very solid! I'd give that 15+

Thank youuu! :smile:

Reply 50

RevisionSux

I think i did fantastically on the second choice of the 20 marker too :smile:

so hopefully it all goes good.
All in all, easier than paper 1 and it went pretty well...

Hopefully the same goes for physics tomorrow :s-smilie:

Reply 51

XBen1999

Do you think a decrease in consumer confidence is a viable answer for the 10 marker? Think I messed it up 😓

Reply 52

xJaayyy

Original post by XBen1999

Do you think a decrease in consumer confidence is a viable answer for the 10 marker? Think I messed it up 😓

That's what I thought, lower incomes mean that consumption decreases and as it's the biggest component of AD it'll have a high significance. Eval: Magnitude etc In addition, it can lead to unemployment/affect the workforces productivity due to less income/wages, reducing SRAS.

Reply 53

shoppy_

basically i wrote about expansionary monetary and fiscal policy as well as using quantitative easing to help stimulate growth during the crisis and showed the effects on an AD/AS diagram.
for evaluation I answered in terms of the current situation, like how because of the massive government spending during the 2008 crisis that is what caused the huge national debt in the UK at the moment and that as monetary policy according to the extract was slashed by about 5% during the crisis, it is now very ineffective for controlling inflation today and briefly spoke about how supply side policies could have been better in the long run. how many marks could i get ??

(edited 7 years ago)

Reply 54

Sam_99

Original post by xJaayyy

I was much more prepared for Micro, but I feel like this went a little better! How did it go for you? :smile:

Yeah same I was more prepared for micro but I did think the macro paper went really well and was a lot nicer

Reply 55

xJaayyy

Original post by Sam_99

Yeah same I was more prepared for micro but I did think the macro paper went really well and was a lot nicer

It sure was! So glad Economics is done for the year now

Reply 56

liamlaw1320

anyone remember any of the other questions other than the 20 marker my mind seems to go blank after an exam

Reply 57

liamlaw1320

For the 20 marker I talked about the following:
defined demand side policies
Defined monetary and the fiscal policy
Used interest rates gave the 2009 fall from 1 to 0.5 % then explain the effect this had on the consumer and firm investment
But i evaluated it by saying that it wasn't very effective in the UK due to lack of consumer confidence/ banks reluctant to lend.
Then i talked out quantitative easing gave the example of the £375 billion invested in the UK. Explain how this increased the supply of money etc. meaning institutions are more willing to lend and lower rates and So forth. Maintaining the interest rates/inflation rate and stimulating growth
and went on to evaluate by saying that it was effective used the USA and how if we invested more we could of got out quicker etc. but said that long term it could have inflationary pressures.