AQA A-level Economics 7136 - P2 (National and international economy) - 23rd May 2019 Watch

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AQA A-level Economics 7136 - Paper 2 (National and international economy) - 23rd May

Exam technique, night before breakdowns and discussion regarding this exam... It's all here :gthumb: Feel free to add resources to the thread as well as anything that may be helpful to others :smartass:

This thread covers the following papers:
  • 7136 Paper 2 National and international economy 2h 23 May 2019 am
:rave:

The official specification: https://filestore.aqa.org.uk/resourc...36-SP-2015.PDF
Spoiler:
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Paper 2: National and international economy
What's assessed
Content 9–14

9 The measurement of macroeconomic performance
10 How the macroeconomy works : the circular flow of income, AD/AS analysis, and related concepts
11 Economic performance
12 Financial markets and monetary policy
13 Fiscal policy and supply-side policies
14 The international economy


Specimen and past papers:
https://www.aqa.org.uk/subjects/econ...ment-resources

:goodluck:

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Drakonson
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Might post my essay plans after Paper 1 for comparison with you guys
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guchi_n
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Hey how was P1, also can you send me some of your essay plans, would appreciate it.
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Might post my essay plans after Paper 1 for comparison with you guys
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User372828
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(Original post by Drakonson)
Might post my essay plans after Paper 1 for comparison with you guys
Ok goes paper 2. I think for eco it’s best to have essay plans. Could you send what you got and I’ll do the essay plans you haven’t gone over
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fmrh
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Thanks in advance for the essay plans
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Drakonson
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Hey how was P1, also can you send me some of your essay plans, would appreciate it.
I did Context 2 and Essay 1 from Section B
Just found out that I got the 2 markers wrong so I'm really not feeling optimistic at all right now
We've got 2 more paper so we'll see.
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moydeh21
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predictions for Paper 2 essay questions?
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Drakonson
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I'm going to start planning essays right now, I'm kinda on a time constraint rn so I'll make them short and succinct

Day 4:

Macroeconomic Policy Objectives
Q1: Explain why low unemployment is a key objective of economic policy for many governments (15 marks)
A: Unemployment is the % of people in the labour force without a job but registered as being willing and available for work.
Unemployment



Q2: Discuss whether reducing unemployment should be the main objective of government (25 marks)
A: Unemployment is defined as people who are able, available and willing to work at the going wage rate but cannot find a job despite an active search for work.
Unemployment means that scarce human resources are not being used to produce goods and services to meet people's needs and wants.

Keeping unemployment low is one of the 4 main macroeconomic objectives of the government. The UK government aims to keep unemployment at it's lowest. Currently, the unemployment rate stands at 4%
One reason why the government may want to keep unemployment low/keep employment high is because it can allow them to increase tax revenue collected. By increasing the number of people in work,
the government can increase tax revenue collected on an aggregate level. As a result of this, the government can use the increased tax revenue to achieve other objectives such as decreasing the
fiscal budget deficit or increase the state-provision of education as well as healthcare.

However, the extent to which the objective of decreasing unemployment is met is dependent on several other factors. For instance, the government must first identify what type of unemployment they are targetting.
Different types of unemployment need different policies to solve, all of which are accompanied by an opportunity cost. For example, by implementing policies to reduce cyclical unemployment,
the government will do so at the expense of not reducing structural unemployment.

Although keeping unemployment is an important macroeconomic objective, there are other objectives that the government may want to pursue. For instance, the government may want to achieve economic growth,
improve the trade balance with the international economy, maintain environmental integrity or keep inflation at the stable 2% level.


The government must also make a tradeoff between achieving different objectives. For example, by achieving high economic growth, the government may have done so but at the expense of higher inflation above the 2% level.
At the expense of maintaining a positive budgetary position, the government have stifled economic growth. These are just examples, but genuine conflicts are much much worse than outlined in theory.


Having weighed up the evidence, the macroeconomic objective of achieving low unemployment may be in the interest of governments due to its many benefits, for example, the increased tax revenue to fund expenditure
on other projects, However, whether this objective is achieved ultimately depends on whoever is in power at that time.
Macroeconomic objectives importance are ranked by the value judgements to authorities and politicians who dominate the countries bureaucracy.
It is important to note achieving macro objectives are not exclusive at all. By achieving high economic growth, a government can simultaneously achieve increased unemployment since labour is derived demand of economic growth.

The Phillips Curve
Q1: Discuss whether it is possible for the government to keep unemployment below the NAIRU in the long run (25 marks)
A: Unemployment is when those who are able and want to work are not in employment. In the UK unemployment stands at it lowest it's been at 3.9% whereas long-term unemployment stands at 1.1%.
The NAIRU, the non-accelerating inflation rate of unemployment is the estimated level of unemployment at which there is no pressure for inflation to occur in an economy.


Q2: Evaluate the view that there is a trade-off between inflation and unemployment (25 marks)
A: Inflation is defined as a persistent increase in the price level of the economy; inflation in the UK stands at 1.9% as of 2019 below the 2.0% target. Unemployment is the level of individuals who want
to and are able to work but are not currently in full employment. In the UK employment stands at the lowest it's been at 3.9%.

The Philips Curve can be used to demonstrate the trade-off between unemployment and inflation in the economy

*Appendix with Short-Run Philips Curve*

There is an inverse relationship between high inflation rates in the economy. At high inflation rates in the economy, there is low unemployment and vice-versa. This occurs because, at low levels of unemployment, there are increased pressures on factors of production in the short-run, in this instance labour.
Due to increased pressure on existing factors, prices increase in the market economy in order to ration out scare resources.


Short-Run and Long-Run Aggregate Supply
Q1: Discuss whether increasing aggregate demand is more likely to reduce unemployment or increase prices (15 marks)
A:




Day 5:

Financial Markets
Q1: Explain the functions of the capital market (15 marks)
A:

Banks and Risk
Q1: Explain the risks that banks face and how they might reduce them (15 marks)(old spec question)
A:

Types of Bank and Regulation
Q1: Explain how the UK financial system is regulated (15 marks)
A:

Q2: To what extent does the UK financial system pose a risk to the UK economy (25 marks)
A: Makes reference to 'Japan's Lost Decade and 2008 sub-prime mortgage crisis'


Money
Q1: Explain the functions of money (15 marks)
A:

Day 6:

Central Banks and Monetary Policy
Q1: Explain the roles of the Bank of England and the Monetary Policy Committee(15 marks)
A:

Q2: Evaluate the impact of lower interest rates on economic agents (25 marks)
A: 'Note: There is no such thing as 'the interest rate' there are multiple interest rates in an economy
refer to the Transmission Mechanism for more

Fiscal Policy and Supply-Side Policies
Q1: Explain the possible demand-side consequences of a decrease in taxation rate (15 marks)
A:

Q2: Evaluate the view that the present policy of the government to reduce its deficit through lower government spending is unnecessary(25 marks)
A:

Globalisation and Emerging Economies
Q1: Use examples to illustrate your answer, explain the difference between economic growth and economic development(15 marks)
A: USA/UK vs China/India


Day 7:

Growth and Development
Q1: Discuss the view that free trade is more effective than aid in promoting economic development in developing countries (25 marks)
A:

Trade
Q1: Examine why international trade has benefitted UK consumers (15 marks)
A: Reference Comparative Advantage
Gains from trade diagram with the perfectly elastic world supply curve
Consuming beyond PPF

Competing Abroad
Q1: Discuss the view that protectionist policies should be introduced to protect UK businesses (25 marks)
A:

The Balance of Payments
Q1: Is devaluing the currency the best way of reducing a current account deficit? (25 marks)
A:
Last edited by Drakonson; 4 weeks ago
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fmrh
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Wow thanks! 👍🏼
(Original post by Drakonson)
I'm going to start planning essays right now, I'm kinda on a time constraint rn so I'll make them short and succinct

Day 4:

Macroeconomic Policy Objectives
Q1: Explain why low unemployment is a key objective of economic policy for many governments (15 marks)
A: Unemployment is the % of people in the labour force without a job but registered as being willing and available for work.
Unemployment



Q2: Discuss whether reducing unemployment should be the main objective of government (25 marks)
A: Unemployment is defined as people who are able, available and willing to work at the going wage rate but cannot find a job despite an active search for work.
Unemployment means that scarce human resources are not being used to produce goods and services to meet people's needs and wants.

Keeping unemployment low is one of the 4 main macroeconomic objectives of the government. The UK government aims to keep unemployment at it's lowest. Currently, the unemployment rate stands at 4%
One reason why the government may want to keep unemployment low/keep employment high is because it can allow them to increase tax revenue collected. By increasing the number of people in work,
the government can increase tax revenue collected on an aggregate level. As a result of this, the government can use the increased tax revenue to achieve other objectives such as decreasing the
fiscal budget deficit or increase the state-provision of education as well as healthcare.

However, the extent to which the objective of decreasing unemployment is met is dependent on several other factors. For instance, the government must first identify what type of unemployment they are targetting.
Different types of unemployment need different policies to solve, all of which are accompanied by an opportunity cost. For example, by implementing policies to reduce cyclical unemployment,
the government will do so at the expense of not reducing structural unemployment.

Although keeping unemployment is an important macroeconomic objective, there are other objectives that the government may want to pursue. For instance, the government may want to achieve economic growth,
improve the trade balance with the international economy, maintain environmental integrity or keep inflation at the stable 2% level.


The government must also make a tradeoff between achieving different objectives. For example, by achieving high economic growth, the government may have done so but at the expense of higher inflation above the 2% level.
At the expense of maintaining a positive budgetary position, the government have stifled economic growth. These are just examples, but genuine conflicts are much much worse than outlined in theory.


Having weighed up the evidence, the macroeconomic objective of achieving low unemployment may be in the interest of governments due to its many benefits, for example, the increased tax revenue to fund expenditure
on other projects, However, whether this objective is achieved ultimately depends on whoever is in power at that time.
Macroeconomic objectives importance are ranked by the value judgements to authorities and politicians who dominate the countries bureaucracy.
It is important to note achieving macro objectives are not exclusive at all. By achieving high economic growth, a government can simultaneously achieve increased unemployment since labour is derived demand of economic growth.

The Phillips Curve
Q1: Discuss whether it is possible for the government to keep unemployment below the NAIRU in the long run (25 marks)
A: Unemployment is when those who are able and want to work are not in employment. In the UK unemployment stands at it lowest it's been at 3.9% whereas long-term unemployment stands at 1.1%.
The NAIRU, the non-accelerating inflation rate of unemployment is the estimated level of unemployment at which there is no pressure for inflation to occur in an economy.


Q2: Evaluate the view that there is a trade-off between inflation and unemployment (25 marks)
A: Inflation is defined as a persistent increase in the price level of the economy; inflation in the UK stands at 1.9% as of 2019 below the 2.0% target. Unemployment is the level of individuals who want
to and are able to work but are not currently in full employment. In the UK employment stands at the lowest it's been at 3.9%.

The Philips Curve can be used to demonstrate the trade-off between unemployment and inflation in the economy

*Appendix with Short-Run Philips Curve*

There is an inverse relationship between high inflation rates in the economy. At high inflation rates in the economy, there is low unemployment and vice-versa. This occurs because, at low levels of unemployment, there are increased pressures on factors of production in the short-run, in this instance labour.
Due to increased pressure on existing factors, prices increase in the market economy in order to ration out scare resources.


Short-Run and Long-Run Aggregate Supply
Q1: Discuss whether increasing aggregate demand is more likely to reduce unemployment or increase prices (15 marks)
A:




Day 5:

Financial Markets
Q1: Explain the functions of the capital market (15 marks)
A:

Banks and Risk
Q1: Explain the risks that banks face and how they might reduce them (15 marks)(old spec question)
A:

Types of Bank and Regulation
Q1: Explain how the UK financial system is regulated (15 marks)
A:

Q2: To what extent does the UK financial system pose a risk to the UK economy (25 marks)
A: Makes reference to 'Japan's Lost Decade and 2008 sub-prime mortgage crisis'


Money
Q1: Explain the functions of money (15 marks)
A:

Day 6:

Central Banks and Monetary Policy
Q1: Explain the roles of the Bank of England and the Monetary Policy Committee(15 marks)
A:

Q2: Evaluate the impact of lower interest rates on economic agents (25 marks)
A: 'Note: There is no such thing as 'the interest rate' there are multiple interest rates in an economy
refer to the Transmission Mechanism for more

Fiscal Policy and Supply-Side Policies
Q1: Explain the possible demand-side consequences of a decrease in taxation rate (15 marks)
A:

Q2: Evaluate the view that the present policy of the government to reduce its deficit through lower government spending is unnecessary(25 marks)
A:

Globalisation and Emerging Economies
Q1: Use examples to illustrate your answer, explain the difference between economic growth and economic development(15 marks)
A: USA/UK vs China/India


Day 7:

Growth and Development
Q1: Discuss the view that free trade is more effective than aid in promoting economic development in developing countries (25 marks)
A:

Trade
Q1: Examine why international trade has benefitted UK consumers (15 marks)
A: Reference Comparative Advantage
Gains from trade diagram with the perfectly elastic world supply curve
Consuming beyond PPF

Competing Abroad
Q1: Discuss the view that protectionist policies should be introduced to protect UK businesses (25 marks)
A:

The Balance of Payments
Q1: Is devaluing the currency the best way of reducing a current account deficit? (25 marks)
A:
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beachpanda
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Thankyou for this you're a saint

(Original post by Drakonson)
I'm going to start planning essays right now, I'm kinda on a time constraint rn so I'll make them short and succinct

Day 4:

Macroeconomic Policy Objectives
Q1: Explain why low unemployment is a key objective of economic policy for many governments (15 marks)
A: Unemployment is the % of people in the labour force without a job but registered as being willing and available for work.
Unemployment



Q2: Discuss whether reducing unemployment should be the main objective of government (25 marks)
A: Unemployment is defined as people who are able, available and willing to work at the going wage rate but cannot find a job despite an active search for work.
Unemployment means that scarce human resources are not being used to produce goods and services to meet people's needs and wants.

Keeping unemployment low is one of the 4 main macroeconomic objectives of the government. The UK government aims to keep unemployment at it's lowest. Currently, the unemployment rate stands at 4%
One reason why the government may want to keep unemployment low/keep employment high is because it can allow them to increase tax revenue collected. By increasing the number of people in work,
the government can increase tax revenue collected on an aggregate level. As a result of this, the government can use the increased tax revenue to achieve other objectives such as decreasing the
fiscal budget deficit or increase the state-provision of education as well as healthcare.

However, the extent to which the objective of decreasing unemployment is met is dependent on several other factors. For instance, the government must first identify what type of unemployment they are targetting.
Different types of unemployment need different policies to solve, all of which are accompanied by an opportunity cost. For example, by implementing policies to reduce cyclical unemployment,
the government will do so at the expense of not reducing structural unemployment.

Although keeping unemployment is an important macroeconomic objective, there are other objectives that the government may want to pursue. For instance, the government may want to achieve economic growth,
improve the trade balance with the international economy, maintain environmental integrity or keep inflation at the stable 2% level.


The government must also make a tradeoff between achieving different objectives. For example, by achieving high economic growth, the government may have done so but at the expense of higher inflation above the 2% level.
At the expense of maintaining a positive budgetary position, the government have stifled economic growth. These are just examples, but genuine conflicts are much much worse than outlined in theory.


Having weighed up the evidence, the macroeconomic objective of achieving low unemployment may be in the interest of governments due to its many benefits, for example, the increased tax revenue to fund expenditure
on other projects, However, whether this objective is achieved ultimately depends on whoever is in power at that time.
Macroeconomic objectives importance are ranked by the value judgements to authorities and politicians who dominate the countries bureaucracy.
It is important to note achieving macro objectives are not exclusive at all. By achieving high economic growth, a government can simultaneously achieve increased unemployment since labour is derived demand of economic growth.

The Phillips Curve
Q1: Discuss whether it is possible for the government to keep unemployment below the NAIRU in the long run (25 marks)
A: Unemployment is when those who are able and want to work are not in employment. In the UK unemployment stands at it lowest it's been at 3.9% whereas long-term unemployment stands at 1.1%.
The NAIRU, the non-accelerating inflation rate of unemployment is the estimated level of unemployment at which there is no pressure for inflation to occur in an economy.


Q2: Evaluate the view that there is a trade-off between inflation and unemployment (25 marks)
A: Inflation is defined as a persistent increase in the price level of the economy; inflation in the UK stands at 1.9% as of 2019 below the 2.0% target. Unemployment is the level of individuals who want
to and are able to work but are not currently in full employment. In the UK employment stands at the lowest it's been at 3.9%.

The Philips Curve can be used to demonstrate the trade-off between unemployment and inflation in the economy

*Appendix with Short-Run Philips Curve*

There is an inverse relationship between high inflation rates in the economy. At high inflation rates in the economy, there is low unemployment and vice-versa. This occurs because, at low levels of unemployment, there are increased pressures on factors of production in the short-run, in this instance labour.
Due to increased pressure on existing factors, prices increase in the market economy in order to ration out scare resources.


Short-Run and Long-Run Aggregate Supply
Q1: Discuss whether increasing aggregate demand is more likely to reduce unemployment or increase prices (15 marks)
A:




Day 5:

Financial Markets
Q1: Explain the functions of the capital market (15 marks)
A:

Banks and Risk
Q1: Explain the risks that banks face and how they might reduce them (15 marks)(old spec question)
A:

Types of Bank and Regulation
Q1: Explain how the UK financial system is regulated (15 marks)
A:

Q2: To what extent does the UK financial system pose a risk to the UK economy (25 marks)
A: Makes reference to 'Japan's Lost Decade and 2008 sub-prime mortgage crisis'


Money
Q1: Explain the functions of money (15 marks)
A:

Day 6:

Central Banks and Monetary Policy
Q1: Explain the roles of the Bank of England and the Monetary Policy Committee(15 marks)
A:

Q2: Evaluate the impact of lower interest rates on economic agents (25 marks)
A: 'Note: There is no such thing as 'the interest rate' there are multiple interest rates in an economy
refer to the Transmission Mechanism for more

Fiscal Policy and Supply-Side Policies
Q1: Explain the possible demand-side consequences of a decrease in taxation rate (15 marks)
A:

Q2: Evaluate the view that the present policy of the government to reduce its deficit through lower government spending is unnecessary(25 marks)
A:

Globalisation and Emerging Economies
Q1: Use examples to illustrate your answer, explain the difference between economic growth and economic development(15 marks)
A: USA/UK vs China/India


Day 7:

Growth and Development
Q1: Discuss the view that free trade is more effective than aid in promoting economic development in developing countries (25 marks)
A:

Trade
Q1: Examine why international trade has benefitted UK consumers (15 marks)
A: Reference Comparative Advantage
Gains from trade diagram with the perfectly elastic world supply curve
Consuming beyond PPF

Competing Abroad
Q1: Discuss the view that protectionist policies should be introduced to protect UK businesses (25 marks)
A:

The Balance of Payments
Q1: Is devaluing the currency the best way of reducing a current account deficit? (25 marks)
A:
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beachpanda
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Does anyone know if Tutor2u are going to do one of these for Macro? Praying so

https://www.youtube.com/watch?v=13w_XVpUgKA
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Lazydragon
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I also did context 2 and essay 1. Which points did you write about in the 25 marker for essay 1? I wrote about nudge policies and subsidising merit goods i remember.
(Original post by Drakonson)
I did Context 2 and Essay 1 from Section B
Just found out that I got the 2 markers wrong so I'm really not feeling optimistic at all right now
We've got 2 more paper so we'll see.
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Drakonson
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For the 25 marker I used two effects of Choice Architecture ie framing and nudge policy.
I looked at how free markets made use of Choice Architecture to influence consumer choice in the supermarket industry.
I.e Tesco, Asda and Sainsbury's make use of product placement, eg framing, in order to influence consumer choice, they place much more healthy products at the entrance of the store to nudge consumers to opt for more healthy alternative for consumption, likewise the place arguably unhealthy foods towards the centre or back of the store to discourage consumption.
Then I evaluated it in comparison to traditional/neoclassical policies to solve demerit good consumption

Then I talked about how the UK government has used framing and nudge policy in the tobacco and cigarette market to solve market failure.

In my judgement, I said that the effectiveness of Behavioural Economic policies depends on how it is used in conjunction with traditional policies
(Original post by Lazydragon)
I also did context 2 and essay 1. Which points did you write about in the 25 marker for essay 1? I wrote about nudge policies and subsidising merit goods i remember.
Last edited by Drakonson; 4 weeks ago
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Got two marker wrong as well rip
(Original post by Drakonson)
I did Context 2 and Essay 1 from Section B
Just found out that I got the 2 markers wrong so I'm really not feeling optimistic at all right now
We've got 2 more paper so we'll see.
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(Original post by beachpanda)
Does anyone know if Tutor2u are going to do one of these for Macro? Praying so

https://www.youtube.com/watch?v=13w_XVpUgKA
Should be
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TAEuler
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I received a lot of positive feedback from posting a successful officially AQA marked past paper for Paper 1, so I'll do it for paper 2! Enjoy!

1. Using the data in Extract A (Figure 2), calculate, to two decimal places, the mean growth rate for India from 2010 to 2014:
10.26 + 6.64 + 5.62 + 6.64 + 7.24 = 36.4
36.4/5 = 7.28%
Marks awarded: 2/2
2. Explain why the data in Extract A (Figure 1) show that living standards in India have improved:
Over the years 1980 to 2014 there has been a consistent increase in the life expectancy at birth from 53.9 to 68. Expected years of schooling have risen from 6.4 years to 11.7 and GNI per capita at 2011 PPP has risen $1255 to $5497. Overall, this has contributed to a higher HDI value of 0.609 (before 0.362). This shows living standards have increased since HDI is a good indicator of access to resources/goods/services etc.
Examiner comment: Includes good explanation and evidence with clear use of data. Full marks (4/4)
3. Extract B (lines 17–19) states ‘India still protects its economy with anti-dumping measures and export subsidies that are designed to promote economic growth.’ With the help of a diagram, explain how export subsidies may help promote economic growth in India:
A subsidy is an amount of money given by the government to a firm or organisation that is assigned to help them invest in new inventions/innovation to increase competitiveness. An increase in capital expenditure by firms given subsidies should boost productivity since more can be produced in the same time frame. This should lead to a fall in average costs.
Diagram: Shift right in SRAS:
The increase in SRAS to SRAS2 means there has been a reduction in prices P to P1 and a rise in real GDP from y to y1, indicating economic growth. India's exports are now much more price competitive which means more are likely to be bought. There may then be an accelerator effect if firms increase investment to maintain a fixed capital to output ratio and so economic growth increases through rises in the productive potential (LRAS). Increasing exports causing AD to rise (X rise) may induce an upwards multiplier effect if firms raise employment in response to raising demand and workers spend these higher incomes
Examiner comment: Good knowledge and understanding with relevant application and well-focused logical chains of analysis. High level 3 (9/9)
4. Extract C (lines 2–3) states ‘More recently, India has begun to use more market-based strategies to help its development, including liberalising trade and privatisation.’ Using the data in the extracts and your knowledge of economics, evaluate the view that greater use of market-based strategies is the best way to improve the economic development of India:
Market based strategies are those defined as policies to allow the market mechanism to function efficiently and allow natural movements of trade of specialisation.

One way for India to improve development is to allow liberalisation of markets and allowing free trade with other economies. By allowing free trade, there is a much larger market for Indian exports. Now with lower transport and communication barrier across the globe, the demand for Indian exports is likely to increase.
Diagram: Keynesian: Shift right in AD
Demand for exports has risen and since AD = C + I + G + (X-M), AD has risen to AD2. Demand pull inflation has risen to P1 and real GDP has risen y to y1, indicating economic growth. If firms see raising GDP they may choose to raise investment as they wish to keep a fixed capital to output ratio, inducing an increase in the productive potential of the economy (LRAS). Also, firms may choose to increase employment. As workers have higher incomes, they now may spend it (rise in C) causing further rises in real GDP. Both of these effects will raise economic growth. Liberalising markets has indeed shown improvements in India's growth (see extract C, lines 5-7). Also as shown by the diagram, India is far from its output gap - it should be able to keep exporting and producing more with little inflationary pressure in the foreseeable future (evidence for this?). However, whether this feeds through to increased economic development is debatable. Whether higher tax receipts will instigate government spending with infrastructure projects or welfare depends on their efficiency, which is unlikely considering extract B states intervention often leads to failure.

Some argue that India would benefit from increased regulation and monitoring in order to reduce the issues raised with a large informal sector. A large informal sector means there is little tax receipt from transactions. Any economic activity, estimated to account for 95% of all employment will not be accounted for and as increased regulation and monitoring should allow governments to regenerate profits earned into welfare systems or education or healthcare (teacher didn't upload the rest but was awarded 24/25)


Explain the possible reasons for changes in the pattern of trade between the UK and the rest of the world:
The Current Account on the balance of payments refers to the trade in visibles (goods), invisibles (services), net primary income and net secondary income between the UK and the rest of the world. Firstly, there has been an emergence in the past few decades of new trading partners, for example the BRICs (e.g. India). These countries have considerably lower labour costs and so their exports are much more price competitive than ours. As a result, we have seen our exports fall and our imports from them increase, particularly in the manufacturing sector.
Secondly, these has been investment and growth of resource rich countries, for example countries in the middle east that have lots of oil. For us, a country with relatively low (and falling) energy supplies and as we have experienced growth in our economy, there has been a need for us to import energy supplies and therefore trade with these countries has increased substantially over the last few decades. Lastly, in the past few decades there has been a shift in employment sectors in the UK. We now enjoy a substantial comparative advantage in terms of the financial service sector that accounts for 79% of UK GDP. This has occurred due to the process of deindustrialisation in the UK due to highest labour costs and the need to import resources. Our specialisation has led to a unique offering of quality financial services which we export to the rest of the world, reflected in our surplus for trade in indivisibles in the current account of our BOP. (A good response showing sound knowledge. Examples given although limited development of points and application of theory. L3 low. 11/15).

Evaluate the measures that might be taken to reduce a deficit on the current account of the UK’s balance of payments:
A deficit on the current account on the UK's balance of payments means that the value of imports of divisibles, indivisibles and net primary/secondary income is greater than the value we export. The government may choose to adopt either expenditure reducing or expenditure switching policies, or a combination of both.

One example of an expenditure switching policy may be to take action to protect the exports. This may include implementing a tariff or quota.
Diagram: tariff diagram.
By increasing the world price of an import from Wp to Wp+t, domestic supply has extended and so domestic production has increased q1 to q2. Imports have fallen q3 to q4. This is because now imports are becoming less price competitive. AD = C + I + G + (X - M) and the value of M has fallen, causing a rise in AD from AD to AD1.
Diagram: Keynesian shift right in AD.
Prices have increased P to P1, increasing demand pull inflation. Real GDP has risen, q to q1 ( should be y to y1), and unemployment is expected to fall as firms have new workers. These may be an upwards multiplier effect if workers spend new income (C rise) and there is a larger final proportionate increase in real GDP.
If firms raise investment a fixed capital to output ratio these may be an accelerator effect and LRAS i.e. productive potential may raise.
Since the value of exports has fallen, it has been successful in reducing the current account deficit. However, it will need to be ensured that any expenditure switching to domestic production can be met currently, the UK has an output gap (estimated?) of only -0.35% and so any increases in AD may not benefit growth/employment etc but merely cause significant inflationary pressures - unwanted with our current CPI inflation rate of 1.85%. Also, in the UK we have a high marginal propensity to consume imports and so if price is raised we could continue to purchase them the deficit could worsen if value increased! Therefore, it may be unwise to adopt such short term policies.

Instead, the government may choose to devalue the pound in order to make our exports more price competitive. A decrease in interest rates may cause hot money to flow out of the UK since foreign investors seek to gain a better return on their savings.
Diagram: supply shift right, presumably supply of the £
An increase in the supply of pounds S to S1 has caused the price of pounds to fall i.e. a depreciation. Exports should now become more price competitive and imports should be more expensive as demand switches. As a result, more exports should be purchased instead and the deficit in the current account should improve. However, in the short term the PED for imports and exports may be price inelastic due to trade agreements etc. Due to the Marshall-Lerner condition in the short term we may see the value of imports rise and we may see an initial worsening of the deficit
Diagram: J-Curve
This was seen in 2016 after extreme devaluation of the sterling after the Brexit vote where initially the current account deficit worsened. Over time, this is expected to correct due to increasing elasticities (shown).
Also, decreasing interest rates may prove undesirable. Falling costs of borrowing a lower incentive to save and lowered mortgage repayments may increase our spending and, as mentioned before, our spending on imports may increase. Therefore, devaluing the pound may prove ineffective in improving our deficit.

A more sustainable, long term approach may be to use supply side policies to boost the productivity of UK workers and thus making our exports more price competitive.
We have experienceda traditional deficit on the current account and also weak productivity gains - it is not unlikely that these are linked. Therefore it may be argued that longer term improvements into schemes such as education and training may be more beneficial to boost productive potential, increase attractiveness of workers and make our exports competitive whilst dampening inflationary pressures, despite a high opportunity cost.

In conclusion, it may be beneficial to use expenditure switching or reducing policies to increase the amount of UK exports and reduce the value of imports but in the long term this may not be sustainable. Firstly, any increase in AD are likely to be inflationary since we have a small output gap of -0.35%. Secondly, any protectionist policies used could mean higher costs of imports and could involve retaliation by other countries. Use of the exchange rate may be useful but it is volatile - a much more sustainable choice for the UK economy would be to target supply side policies to improve the traditional deficit on the current account of the balance of payments.

Good knowledge with well-focussed logical chains of reasoning, good analysis and application. Supported evaluation throughout although lacks depth in conclusion. Mid level 5. (22/25).

Overall mark: 72/80 (64/80 was an A*)
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Thank you. This is great.
(Original post by TAEuler)
I received a lot of positive feedback from posting a successful officially AQA marked past paper for Paper 1, so I'll do it for paper 2! Enjoy!

1. Using the data in Extract A (Figure 2), calculate, to two decimal places, the mean growth rate for India from 2010 to 2014:
10.26 + 6.64 + 5.62 + 6.64 + 7.24 = 36.4
36.4/5 = 7.28%
Marks awarded: 2/2
2. Explain why the data in Extract A (Figure 1) show that living standards in India have improved:
Over the years 1980 to 2014 there has been a consistent increase in the life expectancy at birth from 53.9 to 68. Expected years of schooling have risen from 6.4 years to 11.7 and GNI per capita at 2011 PPP has risen $1255 to $5497. Overall, this has contributed to a higher HDI value of 0.609 (before 0.362). This shows living standards have increased since HDI is a good indicator of access to resources/goods/services etc.
Examiner comment: Includes good explanation and evidence with clear use of data. Full marks (4/4)
3. Extract B (lines 17–19) states ‘India still protects its economy with anti-dumping measures and export subsidies that are designed to promote economic growth.’ With the help of a diagram, explain how export subsidies may help promote economic growth in India:
A subsidy is an amount of money given by the government to a firm or organisation that is assigned to help them invest in new inventions/innovation to increase competitiveness. An increase in capital expenditure by firms given subsidies should boost productivity since more can be produced in the same time frame. This should lead to a fall in average costs.
Diagram: Shift right in SRAS:
The increase in SRAS to SRAS2 means there has been a reduction in prices P to P1 and a rise in real GDP from y to y1, indicating economic growth. India's exports are now much more price competitive which means more are likely to be bought. There may then be an accelerator effect if firms increase investment to maintain a fixed capital to output ratio and so economic growth increases through rises in the productive potential (LRAS). Increasing exports causing AD to rise (X rise) may induce an upwards multiplier effect if firms raise employment in response to raising demand and workers spend these higher incomes
Examiner comment: Good knowledge and understanding with relevant application and well-focused logical chains of analysis. High level 3 (9/9)
4. Extract C (lines 2–3) states ‘More recently, India has begun to use more market-based strategies to help its development, including liberalising trade and privatisation.’ Using the data in the extracts and your knowledge of economics, evaluate the view that greater use of market-based strategies is the best way to improve the economic development of India:
Market based strategies are those defined as policies to allow the market mechanism to function efficiently and allow natural movements of trade of specialisation.

One way for India to improve development is to allow liberalisation of markets and allowing free trade with other economies. By allowing free trade, there is a much larger market for Indian exports. Now with lower transport and communication barrier across the globe, the demand for Indian exports is likely to increase.
Diagram: Keynesian: Shift right in AD
Demand for exports has risen and since AD = C + I + G + (X-M), AD has risen to AD2. Demand pull inflation has risen to P1 and real GDP has risen y to y1, indicating economic growth. If firms see raising GDP they may choose to raise investment as they wish to keep a fixed capital to output ratio, inducing an increase in the productive potential of the economy (LRAS). Also, firms may choose to increase employment. As workers have higher incomes, they now may spend it (rise in C) causing further rises in real GDP. Both of these effects will raise economic growth. Liberalising markets has indeed shown improvements in India's growth (see extract C, lines 5-7). Also as shown by the diagram, India is far from its output gap - it should be able to keep exporting and producing more with little inflationary pressure in the foreseeable future (evidence for this?). However, whether this feeds through to increased economic development is debatable. Whether higher tax receipts will instigate government spending with infrastructure projects or welfare depends on their efficiency, which is unlikely considering extract B states intervention often leads to failure.

Some argue that India would benefit from increased regulation and monitoring in order to reduce the issues raised with a large informal sector. A large informal sector means there is little tax receipt from transactions. Any economic activity, estimated to account for 95% of all employment will not be accounted for and as increased regulation and monitoring should allow governments to regenerate profits earned into welfare systems or education or healthcare (teacher didn't upload the rest but was awarded 24/25)


Explain the possible reasons for changes in the pattern of trade between the UK and the rest of the world:
The Current Account on the balance of payments refers to the trade in visibles (goods), invisibles (services), net primary income and net secondary income between the UK and the rest of the world. Firstly, there has been an emergence in the past few decades of new trading partners, for example the BRICs (e.g. India). These countries have considerably lower labour costs and so their exports are much more price competitive than ours. As a result, we have seen our exports fall and our imports from them increase, particularly in the manufacturing sector.
Secondly, these has been investment and growth of resource rich countries, for example countries in the middle east that have lots of oil. For us, a country with relatively low (and falling) energy supplies and as we have experienced growth in our economy, there has been a need for us to import energy supplies and therefore trade with these countries has increased substantially over the last few decades. Lastly, in the past few decades there has been a shift in employment sectors in the UK. We now enjoy a substantial comparative advantage in terms of the financial service sector that accounts for 79% of UK GDP. This has occurred due to the process of deindustrialisation in the UK due to highest labour costs and the need to import resources. Our specialisation has led to a unique offering of quality financial services which we export to the rest of the world, reflected in our surplus for trade in indivisibles in the current account of our BOP. (A good response showing sound knowledge. Examples given although limited development of points and application of theory. L3 low. 11/15).

Evaluate the measures that might be taken to reduce a deficit on the current account of the UK’s balance of payments:
A deficit on the current account on the UK's balance of payments means that the value of imports of divisibles, indivisibles and net primary/secondary income is greater than the value we export. The government may choose to adopt either expenditure reducing or expenditure switching policies, or a combination of both.

One example of an expenditure switching policy may be to take action to protect the exports. This may include implementing a tariff or quota.
Diagram: tariff diagram.
By increasing the world price of an import from Wp to Wp+t, domestic supply has extended and so domestic production has increased q1 to q2. Imports have fallen q3 to q4. This is because now imports are becoming less price competitive. AD = C + I + G + (X - M) and the value of M has fallen, causing a rise in AD from AD to AD1.
Diagram: Keynesian shift right in AD.
Prices have increased P to P1, increasing demand pull inflation. Real GDP has risen, q to q1 ( should be y to y1), and unemployment is expected to fall as firms have new workers. These may be an upwards multiplier effect if workers spend new income (C rise) and there is a larger final proportionate increase in real GDP.
If firms raise investment a fixed capital to output ratio these may be an accelerator effect and LRAS i.e. productive potential may raise.
Since the value of exports has fallen, it has been successful in reducing the current account deficit. However, it will need to be ensured that any expenditure switching to domestic production can be met currently, the UK has an output gap (estimated?) of only -0.35% and so any increases in AD may not benefit growth/employment etc but merely cause significant inflationary pressures - unwanted with our current CPI inflation rate of 1.85%. Also, in the UK we have a high marginal propensity to consume imports and so if price is raised we could continue to purchase them the deficit could worsen if value increased! Therefore, it may be unwise to adopt such short term policies.

Instead, the government may choose to devalue the pound in order to make our exports more price competitive. A decrease in interest rates may cause hot money to flow out of the UK since foreign investors seek to gain a better return on their savings.
Diagram: supply shift right, presumably supply of the £
An increase in the supply of pounds S to S1 has caused the price of pounds to fall i.e. a depreciation. Exports should now become more price competitive and imports should be more expensive as demand switches. As a result, more exports should be purchased instead and the deficit in the current account should improve. However, in the short term the PED for imports and exports may be price inelastic due to trade agreements etc. Due to the Marshall-Lerner condition in the short term we may see the value of imports rise and we may see an initial worsening of the deficit
Diagram: J-Curve
This was seen in 2016 after extreme devaluation of the sterling after the Brexit vote where initially the current account deficit worsened. Over time, this is expected to correct due to increasing elasticities (shown).
Also, decreasing interest rates may prove undesirable. Falling costs of borrowing a lower incentive to save and lowered mortgage repayments may increase our spending and, as mentioned before, our spending on imports may increase. Therefore, devaluing the pound may prove ineffective in improving our deficit.

A more sustainable, long term approach may be to use supply side policies to boost the productivity of UK workers and thus making our exports more price competitive.
We have experienceda traditional deficit on the current account and also weak productivity gains - it is not unlikely that these are linked. Therefore it may be argued that longer term improvements into schemes such as education and training may be more beneficial to boost productive potential, increase attractiveness of workers and make our exports competitive whilst dampening inflationary pressures, despite a high opportunity cost.

In conclusion, it may be beneficial to use expenditure switching or reducing policies to increase the amount of UK exports and reduce the value of imports but in the long term this may not be sustainable. Firstly, any increase in AD are likely to be inflationary since we have a small output gap of -0.35%. Secondly, any protectionist policies used could mean higher costs of imports and could involve retaliation by other countries. Use of the exchange rate may be useful but it is volatile - a much more sustainable choice for the UK economy would be to target supply side policies to improve the traditional deficit on the current account of the balance of payments.

Good knowledge with well-focussed logical chains of reasoning, good analysis and application. Supported evaluation throughout although lacks depth in conclusion. Mid level 5. (22/25).

Overall mark: 72/80 (64/80 was an A*)
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How's everyone feeling about Paper 2?
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Not my best notes but I feel that they may help; most of them are rushed so don't expect anything special!
Questions taken from:

Letts A-level Revision Success – A-level Economics Year 2 In a Week

Macroeconomic Policy Objectives
Q1: Explain why low unemployment is a key objective of economic policy for many governments (15 marks)
A: Unemployment is the % of people in the labour force without a job but registered as being willing and available for work.
Unemployment

PLAN:
It may be in the government interest to target low unemployment.
Increased tax revenue (fiscal dividend argument)
increased living standards
Alleviates government finance(less expenditure on welfare payments ie JSA)
Helps them achieve other policies: redistribution of income
Could potential talk about the trade-off
Potential political arguments


Q2: Discuss whether reducing unemployment should be the main objective of government (25 marks)
A: Unemployment is defined as people who are able, available and willing to work at the going wage rate but cannot find a job despite an active search for work.
Unemployment means that scarce human resources are not being used to produce goods and services to meet people's needs and wants.

Keeping unemployment low is one of the 4 main macroeconomic objectives of the government. The UK government aims to keep unemployment at it's lowest. Currently, the unemployment rate stands at 4%
One reason why the government may want to keep unemployment low/keep employment high is because it can allow them to increase tax revenue collected. By increasing the number of people in work,
the government can increase tax revenue collected on an aggregate level. As a result of this, the government can use the increased tax revenue to achieve other objectives such as decreasing the
fiscal budget deficit or increase the state-provision of education as well as healthcare.

However, the extent to which the objective of decreasing unemployment is met is dependent on several other factors. For instance, the government must first identify what type of unemployment they are targetting.
Different types of unemployment need different policies to solve, all of which are accompanied by an opportunity cost. For example, by implementing policies to reduce cyclical unemployment,
the government will do so at the expense of not reducing structural unemployment.

Although keeping unemployment is an important macroeconomic objective, there are other objectives that the government may want to pursue. For instance, the government may want to achieve economic growth,
improve the trade balance with the international economy, maintain environmental integrity or keep inflation at the stable 2% level.

The government must also make a tradeoff between achieving different objectives. For example, by achieving high economic growth, the government way has done so but at the expense of higher inflation above the 2% level.
At the expense of maintaining a positive budgetary position, the government have stifled economic growth. These are just examples, but genuine conflicts are much much worse than outlined in theory.

Having weighed up the evidence, the macroeconomic objective of achieving low unemployment may be in the interest of governments due to its many benefits, for example, the increased tax revenue to fund expenditure
on other projects, However, whether this objective is achieved ultimately depends on whoever is in power at that time.
Macroeconomic objectives importance are ranked by the value judgements to authorities and politicians who dominate the countries bureaucracy.
It is important to note achieving macro objectives are not exclusive at all. By achieving high economic growth, a government can simultaneously achieve increased unemployment since labour is derived demand of economic growth.

The Phillips Curve
Q1: Discuss whether it is possible for the government to keep unemployment below the NAIRU in the long run (25 marks)
A: Unemployment is when those who are able and want to work are not in employment, despite an active search for work. In the UK unemployment stands at its lowest at 3.9% whereas long-term unemployment stands at 1.1%.
The NAIRU, the non-accelerating inflation rate of unemployment is the estimated level of unemployment at which there is no pressure for inflation to occur in an economy.

PLAN:
The government can use expansionary fiscal or monetary policy to reduce unemployment below the NAIRU


Q2: Evaluate the view that there is a trade-off between inflation and unemployment (25 marks)
A: Inflation is defined as a persistent increase in the price level of the economy; inflation in the UK stands at 1.9% as of 2019 below the 2.0% target. Unemployment is the level of individuals who want
to and are able to work but are not currently in full employment. In the UK employment stands at the lowest it's been at 3.9%.

The Philips Curve can be used to demonstrate the trade-off between unemployment and inflation in the economy

*Appendix with Short-Run Philips Curve*

There is an inverse relationship between high inflation rates in the economy. At high inflation rates in the economy, there is low unemployment and vice-versa. This occurs because, at low levels of unemployment, there are increased pressures on factors of production in the short-run, in this instance labour.
Due to increased pressure on existing factors, prices increase in the market economy in order to ration out scare resources.

PLAN:
Define unemployment and inflation
Outline the SR Philips Curve
Analysis of how demand-side policies might increase inflation and reduce unemployment in the SR
*Expansionary fiscal and monetary policy arguments and their criticism for evaluation*
Analysis on how supply-side policies could be used to decrease inflation and increase unemployment in the LR
*Could discuss differing views of the adjustment process to the LR equilibrium, therefore, suggesting that the government doesn't have to make a trade-off in the long
run: in the LR, supply-side policies allow the government to achieve all 4 macro-economic objectives, in theory, at the same time*
*Could make use of the Keynesian LRAS and AD curve*
*include diagrams of the Philips Curve adjustment process in the LR: refer to EconDal videos*

Short-Run and Long-Run Aggregate Supply
Q1: Discuss whether increasing aggregate demand is more likely to reduce unemployment or increase prices (15 marks)
A:
Define aggregate demand (AD=C+I+G+(X-M))
Define Unemployment, Define Inflation

The government could increase AD using demand-side policies in the SR
*Expansionary Fiscal and Monetary Policies ie Income Tax, Corporation Tax
OMO, buying corporate bonds to increase the money supply, a decrease in the reserve requirement, a decrease in the discount rate/base rate
currently stands at 0.75% could decrease*
*Could possibly refer to MV=PQ, Monetarist view of SR growth*

*Keynesian ANALYSIS IS KEY HERE IMO*
The impact of an increase in demand depends on where the economy is at the time(or at the time when an increase in aggregate demand takes effect
remember changes in interest rates must go through the Transmission Mechanism that could take anywhere between 18-24 months; refer to Forward Guidance maybe
EG: if the economy is experiencing a negative output gap an increase in demand-side policies will reduce unemployment as opposed to raising prices
if the economy is experiencing a positive output gap the opposite would be true.

Highlight differences between classical view and Keynes view and come to a judgement



Day 5:

Financial Markets
Q1: Explain the functions of the capital market (15 marks)
A:
Define the capital market: provides medium to long-term finance to firms
Explain how firms raise finance in the capital market via equity and debt
Explain the importance of this for businesses e.g financing expansion, investment, mergers and acquisitions
Outline how the government also raises funds in the capital market which allows it to run budget deficits
*Public-Sector Net Cash Requirement*
Explain the difference between primary and secondary capital markets

Banks and Risk
Q1: Explain the risks that banks face and how they might reduce them (15 marks)(old spec question)
A: Explain the functions of a bank(could talk about commercial or investment banks with examples)
Explain what is meant by liquidity risk, why it can occur:
depositors want to withdraw all their funds immediately possibly leading to a bank run
banks may want to reduce this by increasing cash reserve requirements
Explain what is meant by a credit crisis (ie if someone can't repay a loan, 2008 Sub-prime mortgage crisis)
banks may want to reduce this by assessing the risk or anyone or any organisation it lends to more carefully and taking
few risks in its lending

Types of Bank and Regulation
Q1: Explain how the UK financial system is regulated (15 marks)
A: Outline what is meant by Financial Regulation
Explain and outline the roles of the Bank of England, the Financial Policy Committee(FPC)
and the Prudential Regulation Authority(PRA)
Explain the role of the Financial Conduct Authority (FCA)
and the PRA which is not a part of the Bank of England

Q2: To what extent does the UK financial system pose a risk to the UK economy (25 marks)
A: Makes reference to 'Japan's Lost Decade and 2008 sub-prime mortgage crisis'
Explain the different elements of the financial system
Explain the potential risks of the financial system
ie SYSTEMIC RISK(Big Bang of the Banking sector in the 1970s)
Financial Moral Hazard and Financial Instability
Explain the way in which the financial system is regulated
The Financial Services Act
Analyse the overall risk:
The UK financial system probably poses less risk to the UK economy than it did before, due to greater regulation in the recent years after the 2008 crisis.
There is now a difference between a risk to a bank and a risk to the whole banking system. Although, it depends on the extent of the shadow banking sector


Money
Q1: Explain the functions of money (15 marks)
A store of value
medium of exchange, unit of account
standards for deferred payment
explain that money has different forms (MO & M4)
narrow and broad money


Day 6:

Central Banks and Monetary Policy
Q1: Explain the roles of the Bank of England and the Monetary Policy Committee(15 marks)
A: Outline the main role of the BoE e.g banker to the government, the lender of last resort, the regulator of the financial system
Outline the role of the MPC in terms of using interest rates to affect the money market/transmission to influence and therefore achieve the inflation target of
2.0%
Chain of analysis on how changes in interest rates can achieve inflation CPI target


Q2: Evaluate the impact of lower interest rates on economic agents (25 marks)
A: 'Note: There is no such thing as 'the interest rate' there are multiple interest rates in an economy
refer to the Transmission Mechanism for more



Fiscal Policy and Supply-Side Policies
Q1: Explain the possible demand-side consequences of a decrease in taxation rate (15 marks)
A:

PLAN:
Define AD( C+I+G+(X-M)
Define Deflationary Fiscal Policy

Explain how decreased indirect/direct tax can affect any or more components of AD
ie A decrease in corporation tax can increase economic growth. A cut in corporation tax increases the level of retain profit firms across the economy hold.
This means that firms will have more money to fund investment projects such as expenditure on capital goods for instance. Consequently, this
has the effect of increasing investment in the aggregate economy, causing an increase in the I component of aggregate leading to an increase in economic growth
*AD shift outwards*. As it stands corporation tax has been cut from 28% to 19% in the UK with talks of further cuts; increasing the incentive to invest in capital goods
is further exacerbated to the accelerator effect. Firms will see an increase in AD and will, therefore, increase expenditure on capital goods resulting in a greater than propotionate increase in the rate of GDP growth. *AD shifts outwards again*

Q2: Evaluate the view that the present policy of the government to reduce its deficit through lower government spending is unnecessary(25 marks)
A:

Globalisation and Emerging Economies
Q1: Use examples to illustrate your answer, explain the difference between economic growth and economic development(15 marks)
A: USA/UK vs China/India


Day 7:

Growth and Development
Q1: Discuss the view that free trade is more effective than aid in promoting economic development in developing countries (25 marks)
A:

Trade
Q1: Examine why international trade has benefitted UK consumers (15 marks)
A: Reference Comparative Advantage
Gains from trade diagram with the perfectly elastic world supply curve
Consuming beyond PPF

Price-Non Price improvemens
Include Gains from Free Trade diagram

Competing Abroad
Q1: Discuss the view that protectionist policies should be introduced to protect UK businesses (25 marks)
A:

Define protectionism
Include examples of why it may be beneficial
Protection of infant industries
Protection from unfair low unit labour costs from China
Tariff diagram
Discuss the cons of protectionism
Retaliation
Promotes inefficiencies
Effects on different stakeholders
SR/LR
Judgement


The Balance of Payments
Q1: Is devaluing the currency the best way of reducing a current account deficit? (25 marks)
A: Define devaluation
Explain how it may work
ie currency reserves or interest rate changes
*money market diagram with exchange rate diagram

Marshall-Lerner Condition/J-Curve diagram
Cause of deficit
Size of deficit
SR/LR
Last edited by Drakonson; 3 weeks ago
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Idk if I should feel calm or stressed tbh

(Original post by beachpanda)
How's everyone feeling about Paper 2?
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