AQA A-level Economics 7136 - P3 (Economic principles and issues) - 04th June 2019

What did u guys get for the multiplier question. Was it just 1/MPS for the answer?

For the 10 marker:

I said that variable mortages were high in 2007 compared to 2017
I said the mortage payments were higher in 2007 than 2017 and so suggests housing affordability was greater in 2017 than 2007. However I said that the house prices were 19% lower in 2007 than 2017.
One limitation of the data I said was ‘it does not show the inflation rate, so we cannot make a full judgement’.


For the 15 marker:

I said consumers lose confidence, AD shifts to the left, price goes down for housing due to the financial crisis of 2008.
Then I said for my second point business confidence and so investment and FDI falls so supply of houses falls from S1-S2... omg I used a micro and macro diagram... is this bad? And I scribbled out some diagrams will they penalise me?


For the 25 marker... RIP

Very brief- Just spoke about housing market history. Then said like SS policies but then said we can use regulations like looser planning permission which reduces red tape and delays so Supply shifts out, then i said final judgement rushed it saying something like we should use gov spending



How bad is this, can I achieve a C grade in this paper?

What did u guys get for the multiplier question. Was it just 1/MPS for the answer?

It was 2.5

but its a substitute for it as it said in the question and so would have been used for leather too, supply would increase at a lower price too i think

Agreed

Chicken and beef are substitutes
Beef and leather are in joint supply
Increase in demand for chicken means decrease in demand for beef so a contraction in supply
Supply shifts inwards for leather as less quantity produced

There is a reduction in demand for beef for eating due to decrease in chicken price, this means cows are used to supply more leather opposed to beef and that shifts the supply curve for leather outwards

There is a reduction in demand for beef for eating due to decrease in chicken price, this means cows are used to supply more leather opposed to beef and that shifts the supply curve for leather outwards

For the 10 marker:

I said that variable mortages were high in 2007 compared to 2017
I said the mortage payments were higher in 2007 than 2017 and so suggests housing affordability was greater in 2017 than 2007. However I said that the house prices were 19% lower in 2007 than 2017.
One limitation of the data I said was ‘it does not show the inflation rate, so we cannot make a full judgement’.


For the 15 marker:

I said consumers lose confidence, AD shifts to the left, price goes down for housing due to the financial crisis of 2008.
Then I said for my second point business confidence and so investment and FDI falls so supply of houses falls from S1-S2... omg I used a micro and macro diagram... is this bad? And I scribbled out some diagrams will they penalise me?


For the 25 marker... RIP

Very brief- Just spoke about housing market history. Then said like SS policies but then said we can use regulations like looser planning permission which reduces red tape and delays so Supply shifts out, then i said final judgement rushed it saying something like we should use gov spending



How bad is this, can I achieve a C grade in this paper?

The fisher equation of money question. What did people put.
An x% increase in...

The fisher equation of money question. What did people put.
An x% increase in...

And Q30.
Was index value 107?

That exam was complete ********. Barely finished it and had to rush the 25 marker. Also I think the debt to equity ratio question was 2:1 since it was 1 mil debt and 500k equity

I think leather is a by-product of cows (supply of beef = supply of leather too), rather than something you supply instead of beef

Did you do 1/MPS for size of multiplier?

I thought the 15 marker was micro as the causes? Did anyone else mention the issue of inelsatic and low supply while relatively high demand (although I also linked this in with animal spirits as it said the housing market was sensitive to economic condition I.e confidence?