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AQA A-level Economics new 7136 - 06, 13 & 19 Jun 2017 [Exam Discussion] Watch

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    is fdi part of the current account or the capital account?
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    (Original post by SWISH99)
    is fdi part of the current account or the capital account?
    Neither.......... its part of the financial account which is and made up of net portfolio investment net direct investment hot money (speculators) and country reserves
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    is anyone else screwed
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    I just don't understand how to write a macro essay and what gives you top marks, I feel like I know nothing. I can't even remember globalisation ughhhhhh let alone last year's stuff
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    Can someone help me.

    For monetarism how would I bring that into an essay e.g on monetary policy like.

    Could I say- QE- increase liquidity of banks- more loans- higher investment- higher AD

    Weak- fishers theory of exchange says MV=PQ and V and q are fixed so any increase in money supply would just lead to an increase in inflation as in the SR output wouldn't change?

    Is this right?
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    (Original post by junky27)
    Can someone help me.

    For monetarism how would I bring that into an essay e.g on monetary policy like.

    Could I say- QE- increase liquidity of banks- more loans- higher investment- higher AD

    Weak- fishers theory of exchange says MV=PQ and V and q are fixed so any increase in money supply would just lead to an increase in inflation as in the SR output wouldn't change?

    Is this right?
    Yes absolutely. But you could also bring keynesian into it who argue that V is not constant and that Q is much below the full employment level of output (due to market forces being to week to acheive such an outcome)and thus may not lead to inflation.
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    How would one go about answering an essay on falling/rising commodity prices on the performance UK economy.

    Anyone have essay plans?
    Evaluation?

    Also would falling commodity prices boost exports in the sense that loads of firms import raw materials, soit helps them?
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    (Original post by physicsamor)
    How would one go about answering an essay on falling/rising commodity prices on the performance UK economy.

    Anyone have essay plans?
    Evaluation?

    Also would falling commodity prices boost exports in the sense that loads of firms import raw materials, soit helps them?
    Think about how rising commodity prices affects each one of the macroeconomic objectives. How does it affect Economic growth, employment, inflation and BOP. A diagram should help a lot with this question and then do a paragraph on each of the economic objectives
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    (Original post by physicsamor)
    How would one go about answering an essay on falling/rising commodity prices on the performance UK economy.

    Anyone have essay plans?
    Evaluation?

    For a rise in commodity prices:

    Also would falling commodity prices boost exports in the sense that loads of firms import raw materials, soit helps them?
    leftward shift of SRAS (icost push nflation, slow growth, higher prices for consumers)

    Reduction in the value of net exports (reduction in AD, negative multiplier effect, cyclical unemployment)

    High costs mean that there is less incentive or businesses to start up, leads to a slow down on the trend rate of growth.

    could actually attract demand to the uk steel industry and prevent structural unemployment in this industry
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    (Original post by physicsamor)
    How would one go about answering an essay on falling/rising commodity prices on the performance UK economy.

    Anyone have essay plans?
    Evaluation?

    Also would falling commodity prices boost exports in the sense that loads of firms import raw materials, soit helps them?
    in the introduction you could also talk about the causes of a rise in the price of commodities (specualtive demand, increased demand due to developing economies)
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    (Original post by RG110man)
    Think about how rising commodity prices affects each one of the macroeconomic objectives. How does it affect Economic growth, employment, inflation and BOP. A diagram should help a lot with this question and then do a paragraph on each of the economic objectives
    Ah okay, gonna attempt to write with this structure, thank you!!

    (Original post by SWISH99)
    leftward shift of SRAS (icost push nflation, slow growth, higher prices for consumers)

    Reduction in the value of net exports (reduction in AD, negative multiplier effect, cyclical unemployment)

    High costs mean that there is less incentive or businesses to start up, leads to a slow down on the trend rate of growth.

    could actually attract demand to the uk steel industry and prevent structural unemployment in this industry
    Thank you, I'm a bit confused on how it would lead to a reduction in exports/boost the steel industry, could you explain that (sorry )
    (Original post by SWISH99)
    in the introduction you could also talk about the causes of a rise in the price of commodities (specualtive demand, increased demand due to developing economies)
    ah okay thank you!
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    (Original post by physicsamor)
    Ah okay, gonna attempt to write with this structure, thank you!!


    Thank you, I'm a bit confused on how it would lead to a reduction in exports/boost the steel industry, could you explain that (sorry )

    ah okay thank you!
    many companies import commodities in order to produce their goods. If the price of commodities increases, the firms will have to spend more on imports. This would lead to a reduction in net exports (exports-imports). Imports are a withdrawal of the circular flow of income. Therefore, a rise in the value of imports would decrease AD, potentially leading to the negative multiplier effect.

    The point about the steel industry is not as strong. Steel is a commodity (i think). The UK could take advantage of increasing world steel prices by trying to improve efficiency, which would reduce Uk steel prices, leading to an increase in demand for UK steel
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    so ****ed for this exam
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    Do you think financial regulation will come up?
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    (Original post by Kaasi)
    Do you think financial regulation will come up?
    don't really know, but I'm taking a gamble and not revising for it.
    Even if I do revise it, I will 100% not chose a question on financial regulation - so I might as well not revise it
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    (Original post by SWISH99)
    many companies import commodities in order to produce their goods. If the price of commodities increases, the firms will have to spend more on imports. This would lead to a reduction in net exports (exports-imports). Imports are a withdrawal of the circular flow of income. Therefore, a rise in the value of imports would decrease AD, potentially leading to the negative multiplier effect.

    The point about the steel industry is not as strong. Steel is a commodity (i think). The UK could take advantage of increasing world steel prices by trying to improve efficiency, which would reduce Uk steel prices, leading to an increase in demand for UK steel
    Whoops I'm an idiot, I understand thank you
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    How would you approach a financial regulation question if it came up?
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    (Original post by GGHarambe)
    How would you approach a financial regulation question if it came up?
    I would approach it by ignoring it
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    are there tariffs on services as well?
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    Anyone got any ideas on how to revise for paper 3? The only two specimins are miles different from one another so I don't really know what to revise and how to revise for it in terms of the essays because there's just such a broad amount of questions that could come up!
 
 
 
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