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

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    Lmao imagine if paper 3 is on brexit
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    (Original post by tamcat)
    do you guys reckon paper 3 will be based on financial markets?

    I'm unsure as I'm slightly confused how they would incorporate it into the context sections (iygwim)
    also there is the chance of everyone crashing and burning if they do base it around financial markets - so hopefully they won't!

    any thoughts?
    There has been nothing yet on financial markets. I would think there a very good chance at least one of the longer answer questions will link to financial markets
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    (Original post by WilliamHaycocks)
    There has been nothing yet on financial markets. I would think there a very good chance at least one of the longer answer questions will link to financial markets
    Perhaps Paper 3 will be on some of the struggling EU economies and this could be linked into problems in financial markets and budget deficits.
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    (Original post by Sam10711)
    What did you talk about?
    Honestly I can't remember, I just remember i didn't write about disadvantages of globalisation. I did the paper at 8:45 because I had a clash. What was the 25 marker question again?
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    (Original post by Sam10711)
    2 specimens? Where did you get the other one from?
    Your teacher should have one - they have a second one you just gotta ask them for it, it's not accessible to us.
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    Firstly - FOR THOSE WHO DID CONTEXT 2, you know how it said developed economies like UK and Japan how did you relate your whole answer to developed economies? I noticed that this was one of the kind of 'hidden' words in the question as such, in the sense that it would be good for evaluation, but all I really said about it was that in the case of developed economies they frequently have significant national debt occurring and therefore fiscal stimuli will have long term implications. Did anyone else notice this?
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    (Original post by WilliamHaycocks)
    There has been nothing yet on financial markets. I would think there a very good chance at least one of the longer answer questions will link to financial markets
    https://www.tutor2u.net/economics/bl...3-in-june-2017 watch this video - towards the end it brings up topics that are likely to be in it. It's for teachers but it explains really well what is expected of students!
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    reading everyone's answers makes me realise how weak my points probably were.
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    (Original post by dramanoons)
    Firstly - FOR THOSE WHO DID CONTEXT 2, you know how it said developed economies like UK and Japan how did you relate your whole answer to developed economies? I noticed that this was one of the kind of 'hidden' words in the question as such, in the sense that it would be good for evaluation, but all I really said about it was that in the case of developed economies they frequently have significant national debt occurring and therefore fiscal stimuli will have long term implications. Did anyone else notice this?
    Yes! I mentioned about QE being relatively new to developed nations so the effects haven't really been seen (there was also a quote in the extract that backed this up)... as well as economies facing 0% and even negrates in Japan's case - yet there is still not much in terms of a result of the policies which casts their usefulness into doubt. Not only in UK and Japan, but the Eurozone which as rates at 0% and the USA at 0,75% (though they are starting to raise this).
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    (Original post by Arran1109)
    Yes! I mentioned about QE being relatively new to developed nations so the effects haven't really been seen (there was also a quote in the extract that backed this up)... as well as economies facing 0% and even negrates in Japan's case - yet there is still not much in terms of a result of the policies which casts their usefulness into doubt. Not only in UK and Japan, but the Eurozone which as rates at 0% and the USA at 0,75% (though they are starting to raise this).
    yeah see mine wasnt really extensive i just thought logically about it. also, in case you know, can negative interest rates cause a run on the banks?
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    (Original post by dramanoons)
    yeah see mine wasnt really extensive i just thought logically about it. also, in case you know, can negative interest rates cause a run on the banks?
    To be honest I only knew that because I follow these things and trade them... if I didn't do that then I wouldn't know that! To be honest I don't know a great deal about negrates, pretty sure investopedia have some good information on them though
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    (Original post by Arran1109)
    To be honest I only knew that because I follow these things and trade them... if I didn't do that then I wouldn't know that! To be honest I don't know a great deal about negrates, pretty sure investopedia have some good information on them though
    haha no i dont mean for my own personal enjoyment i just mean in the essay was trying to justify why negative interest rates were bad, and i thought that it had systemic risk as people would all take out their money and if banks werent suficiently liquid then they couldnt honour all withdrawals at once and thus a crisis would ensue. didnt know if this was right
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    I reckon paper 3 might be related to the EU or the Eurozone. Doubt they'd base it entirely on financial markets.
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    Grade boundary predictions for an A/A*?
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    (Original post by dramanoons)
    haha no i dont mean for my own personal enjoyment i just mean in the essay was trying to justify why negative interest rates were bad, and i thought that it had systemic risk as people would all take out their money and if banks werent suficiently liquid then they couldnt honour all withdrawals at once and thus a crisis would ensue. didnt know if this was right
    Well yeah I guess you have a point; if banks are taking people's money that they deposit then people simply won't deposit money in banks and instead hoard it or put it in other assets such as gold which is seen as a safe haven (though not as liquid or useful). I'm pretty sure that Japanese banks will have some kind of policy that stops that from happening though, otherwise it just doesn't make sense to own a bank at all.

    One thing I can say I have a little familiarity with though; because the base rate is negative, banks will want to borrow as much as they can from the central bank so the banks lend out as much money as they can.... something along those lines; again, don't take me to account because I'm not 100%
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    For the 9 marker about productivity:

    Can someone tell me if this is wrong?

    Rather than SRAS i spoke about the fact that an increase in capital productivity can lead to falling aggregate demand and, in turn, deflation because mechanisation and automation compromise labour market wages for the same work output and, in extreme cases, remove the need for workers at all. thus, lower income and fall in AD blahblahblah is this justified? is there something inherently wrong with this as an answer?
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    For the 9 marker about productivity I talked about a shift in lras as well as sras
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    (Original post by faatimahshiekh)
    Honestly I can't remember, I just remember i didn't write about disadvantages of globalisation. I did the paper at 8:45 because I had a clash. What was the 25 marker question again?
    It was something about whether market based strategies such as privatisation and trade liberalisation are the best for economic development in India
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    (Original post by Holdsworth1)
    Hi everyone, I did context 2 and essay 2 today and would like to know if my 25 markers are okay or not.

    For the first one on monetary policy being the most effective method to reduce inflation, I first discussed what monetary policy is and explained its individual components of interest rates, the exchange rate and QE. I then explained how these policies could be used in away to increase AD and thus the price level in the economy, with examples. I then discussed the limitations of these policies in the UK and Japan with reference to examples and the liquidity trap, and why it may not be the most successful policy to use. I then discussed how other policies such as fiscal policy and supply-side policies could be used to reduce deflationary risks, and evaluated these policies. I concluded that a combination of these policies should be used, as although monetary policy can be successful, when it fails, a back up is needed to ensure that the deflationary risks are successfully mitigated.

    For the second one on ways to reduce the current account deficit in the UK I explained, analysed and evaluated the use of the policies of interest rates and the exchange rate to reduce the demand for imports, import tariffs and then export subsidies as protectionist policies. For interest rates I explained that they can be raised to reduce the demand and investment in the economy as there is a higher reward for saving, and this will reduce the demand for imports, however that this policy could be flawed as the demand for the currency is increased which may strengthen the pound and make imports cheaper and worsen the deficit. I then described how export subsidies could be used to help make exporting cheaper into foreign markets, and how this could lead to an export-led multiplier effect, and so help to reduce the deficit, however, the fact that this policy does not seek to reduce the level of imports may mean that it doesn't successfully reduce the deficit. I then spoke about how import tariffs could be used to make imports more expensive and deter people to buy domestic goods instead, and so help to reduce the deficit, however that this may be flawed as this could spark a trade war and other firms may then out tariffs on exporting into other countries, as well as the fact that the cross-elasticities of demand may not be reduced enough to mean people stop buying the imports instead if there is a strong brand loyalty. People will maximise their utility and so will continue to buy the imports if they want to even if they are more expensive. I concluded that the weaker pound following Brexit may be enough to help reduce the deficit as imports become more expensive, however, that a combination of these policies should be used in the long-run if the deficit is not reduced, overall.

    Do these sound vaguely ok and correct? Thanks.😊
    Anyone else have a response to this?😊
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    (Original post by Holdsworth1)
    Anyone else have a response to this?😊
    I aint got time to read shakespeares written work, summarise it pls, k thnx
 
 
 
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