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

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    (Original post by Arran1109)
    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!
    APT and Tutor2u papers for paper 3. Legacy papers on ECON1 and ECON2 for multiple choice questions. Remembering that it is essential to use the extract in answering every question in the case study.
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    please can somebody help me to understand crowding out.
    Am I right in saying that in a recession Gov spending will most likely be financed through government borrowing. Therefore to raise money the gov will issue more bonds which increases the supply of pounds and therefore brings down the bonds market price. As a result this will increase the yield on bonds and most loan or mortgages use the yield as a benchmark for interest rates. Therefore, due to the increased bond yield, interest rates will increase and as a result crowd out private sector lending? absolutely no idea if i am right tho!!! HELP
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    (Original post by Arran1109)
    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!
    I guess after paper 2 we might have an idea of what could come up
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    (Original post by Gemmamcconville)
    please can somebody help me to understand crowding out.
    Am I right in saying that in a recession Gov spending will most likely be financed through government borrowing. Therefore to raise money the gov will issue more bonds which increases the supply of pounds and therefore brings down the bonds market price. As a result this will increase the yield on bonds and most loan or mortgages use the yield as a benchmark for interest rates. Therefore, due to the increased bond yield, interest rates will increase and as a result crowd out private sector lending? absolutely no idea if i am right tho!!! HELP
    think of it this way - much easier to explain
    1) increased gov spending not an issue as UK gov can simply increase money suppply
    2) However, this is bad for anyone holding a bond as inflation erodes the yield as coupon payments are fixed
    3) Before this even happens, the expectation of this occurring leads to a fall in confidence and ratings on credit score agencies
    4) this leads to a fall in demand for bonds and thus a fall in the price of bonds
    5) the price of a bond is inversely proportional to yield(interest), therefore a fall in price of bond will lead to a rise in interest rates
    6) investment is less attractive for firms as instead of borrowing and spending that money they can save it to and get an higher return
    7) thus low levels of investment and LRAS shifts to the left
    This is FINANCIAL CROWDING OUT


    1) the private sector buying to many bonds as a result of the gov trying to sell the bonds in order to fund their spending will lead to a lack of resources (in this case money) for the private sector to use to invest. This also shifts LRAS to the left
    This is RESOURCE CROWDING OUT
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    who would inflation in other countries cause the pound to appreciate?
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    (Original post by SWISH99)
    who would inflation in other countries cause the pound to appreciate?
    Inflation would raise the price of imports, so I think it would cause the pound to depreciate.
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    Peg adjustable exchange rates aren't in the syllabus right?

    In the spec it just says advantages / disadvantges of fixed/floating exchange rates.
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    (Original post by SWISH99)
    who would inflation in other countries cause the pound to appreciate?
    Inflation in other countries makes uk exports more competitive so demand for uk exports and thus sterling increases which cause excess demand on the forgien exchange market thus causing the exchange rate to rise
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    I feel like there's just too much content ughhh i literally can't remember this all rip
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    What are some good points for and against joining a monetary union?

    The textbook says something about a stable exchange rate bit confused :/
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    (Original post by tamcat)
    think of it this way - much easier to explain
    1) increased gov spending not an issue as UK gov can simply increase money suppply
    2) However, this is bad for anyone holding a bond as inflation erodes the yield as coupon payments are fixed
    3) Before this even happens, the expectation of this occurring leads to a fall in confidence and ratings on credit score agencies
    4) this leads to a fall in demand for bonds and thus a fall in the price of bonds
    5) the price of a bond is inversely proportional to yield(interest), therefore a fall in price of bond will lead to a rise in interest rates
    6) investment is less attractive for firms as instead of borrowing and spending that money they can save it to and get an higher return
    7) thus low levels of investment and LRAS shifts to the left
    This is FINANCIAL CROWDING OUT


    1) the private sector buying to many bonds as a result of the gov trying to sell the bonds in order to fund their spending will lead to a lack of resources (in this case money) for the private sector to use to invest. This also shifts LRAS to the left
    This is RESOURCE CROWDING OUT

    Thanks
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    (Original post by Kaasi)
    I would approach it by ignoring it
    Sounds like a plan, I'm so effed for this exam
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    I can see a question about the effects of falling unemployment coming up, due to the recent trends of it hitting record lows
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    (Original post by physicsamor)
    What are some good points for and against joining a monetary union?

    The textbook says something about a stable exchange rate bit confused :/
    More stable exchange rate reducing uncertaincy due to less fluctuations.
    Consumers and Firms both benefit from savings in cost of transactions as a result of not having to convert currency.
    Loss of the ability to use monetary policy effectively to achieve macroeconomic objectives
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    Does anyone have the set 2 specimen papers please?
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    (Original post by GGHarambe)
    More stable exchange rate reducing uncertaincy due to less fluctuations.
    Consumers and Firms both benefit from savings in cost of transactions as a result of not having to convert currency.
    Loss of the ability to use monetary policy effectively to achieve macroeconomic objectives
    Thanks! gonna just try to remember this all in case it turns up
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    Anyone have any prediction of the questions will be on? Not the context the actually topic of macro ? Like inflation etc?


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    (Original post by Kitboy738)
    Anyone have any prediction of the questions will be on? Not the context the actually topic of macro ? Like inflation etc?


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    umepmloyment?

    don't think it came up in the specimen papers
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    (Original post by Desouza123)
    Does anyone have the set 2 specimen papers please?
    here they are
    Attached Images
  1. File Type: pdfA LEVEL ECONOMICS PAPER 1 - SECOND SET MARK SCHEME.pdf (158.2 KB, 67 views)
  2. File Type: pdfA LEVEL ECONOMICS PAPER 2 - SECOND SET MARK SCHEME.pdf (218.8 KB, 56 views)
  3. File Type: pdfA LEVEL ECONOMICS PAPER 3 - SECOND SET MARK SCHEME.pdf (131.8 KB, 20 views)
  4. File Type: pdfA level Paper 1 Specimen QP - 7136.1 - Second Set.pdf (47.8 KB, 65 views)
  5. File Type: pdfA level Paper 2 Specimen QP - 7136.2- Second Set.pdf (46.4 KB, 61 views)
  6. File Type: pdfSECOND SET - QP Econ AL Paper 3 120115 AMMENDED 14 JUNE .pdf (865.4 KB, 17 views)
  7. File Type: pdfSECOND SET - SOURCE BOOKLET A LEVEL PAPER 3 7136.3.pdf (37.3 KB, 16 views)
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    (Original post by jayzone11)
    here they are
    Cheers man, appreciate it
 
 
 
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