A-level economics 25 marker
I have written part of a 25 marker (not the whole thing). Can someone please have a look and just give feedback on the level and quality of it. Thanks.
P.s there was a diagram but I’m not sure how to include it, it was a Keynesian AD/AS diagram.
Supply side policies are polices that focus on the increase of supply of goods and services in an economy to help achieve key macroeconomic objectives such as unemployment and inflation. This can be done via investments into factors of production, tax cuts and deregulation. These policies aim to provide higher levels of productivity and thus increase the out[ut within the economy. Interventionist policies are implemented by the government to improve long term supply in the economy. An example of this could be an investment into the public sector such as education and training. because of this, the quality of the workforce would be greater and thus improving the productivity within the economy. This would lead to a rightward shift in LRAS shown in the diagram from LRAS1 to LRAS2, highlighting an increase in long run aggregate supply. As a result, the costs of production would likely be lowered which can then be passed on to the consumers at lower prices. This is shown in the diagram by the shift in equilibrium prices from P1 to P2 showing the policy also helps to counter cost-push inflation. As a result, consumers are more inclined to spend and therefore consumption rises which stimulates AD. In turn, firms receive higher revenue which they may then reinvest into labour and potentially provide more jobs. This helps reduce unemployment highlighted by the shift from Y1 to Y2, reducing the negative output gap meaning more factors of production are being utilised efficiently. Because of this, labour is being utilised efficiently thus structural unemployment decreases as more trained and skilled workers enter the workforce in the long run. As a result of low unemployment, more consumers have greater disposable incomes thus inciting further rounds of spending leading to a greater increase in AD highlighting significant economic growth. This is known as the multiplier effect where an initial injection into the circular flow result in a great increase in GDP. In this scenario, the investment is the injection and the effects of further rounds of spending provide the increase in GDP highlighting economics growth showing that the policy os effective in achieving growth and lowering unemployment.
However, there is likely to be a time lag within the transmission mechanism of the investment into education. This could take years for an improvement or result to be seen as schools may take time to implement the new curriculum and teach it to students. As a result, by the time an actual change comes about, the economic context may have varied and therefore the policy is no longer needed. Ultimately, the likelihood of success of the policy depends on how quickly the policy can be implemented and whether it is a necessary step such as fiscal or monetary policies being out of the question. If they are able to be implemented, they tend to act more quickly such as a cut in interest rates can stimulate a rise in demand and therefore having a quicker and suitable impact on AD and therefore should be chosen over the supply side policy. Additionally, the supply side polices have many costs associated with them which not only increases the opportunity costs but also can lead to a rise in national debt. This could lead to a spill over effect in the future by a potential raise in income and corporation tax to help pay off the government debt.
P.s there was a diagram but I’m not sure how to include it, it was a Keynesian AD/AS diagram.
Supply side policies are polices that focus on the increase of supply of goods and services in an economy to help achieve key macroeconomic objectives such as unemployment and inflation. This can be done via investments into factors of production, tax cuts and deregulation. These policies aim to provide higher levels of productivity and thus increase the out[ut within the economy. Interventionist policies are implemented by the government to improve long term supply in the economy. An example of this could be an investment into the public sector such as education and training. because of this, the quality of the workforce would be greater and thus improving the productivity within the economy. This would lead to a rightward shift in LRAS shown in the diagram from LRAS1 to LRAS2, highlighting an increase in long run aggregate supply. As a result, the costs of production would likely be lowered which can then be passed on to the consumers at lower prices. This is shown in the diagram by the shift in equilibrium prices from P1 to P2 showing the policy also helps to counter cost-push inflation. As a result, consumers are more inclined to spend and therefore consumption rises which stimulates AD. In turn, firms receive higher revenue which they may then reinvest into labour and potentially provide more jobs. This helps reduce unemployment highlighted by the shift from Y1 to Y2, reducing the negative output gap meaning more factors of production are being utilised efficiently. Because of this, labour is being utilised efficiently thus structural unemployment decreases as more trained and skilled workers enter the workforce in the long run. As a result of low unemployment, more consumers have greater disposable incomes thus inciting further rounds of spending leading to a greater increase in AD highlighting significant economic growth. This is known as the multiplier effect where an initial injection into the circular flow result in a great increase in GDP. In this scenario, the investment is the injection and the effects of further rounds of spending provide the increase in GDP highlighting economics growth showing that the policy os effective in achieving growth and lowering unemployment.
However, there is likely to be a time lag within the transmission mechanism of the investment into education. This could take years for an improvement or result to be seen as schools may take time to implement the new curriculum and teach it to students. As a result, by the time an actual change comes about, the economic context may have varied and therefore the policy is no longer needed. Ultimately, the likelihood of success of the policy depends on how quickly the policy can be implemented and whether it is a necessary step such as fiscal or monetary policies being out of the question. If they are able to be implemented, they tend to act more quickly such as a cut in interest rates can stimulate a rise in demand and therefore having a quicker and suitable impact on AD and therefore should be chosen over the supply side policy. Additionally, the supply side polices have many costs associated with them which not only increases the opportunity costs but also can lead to a rise in national debt. This could lead to a spill over effect in the future by a potential raise in income and corporation tax to help pay off the government debt.
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Can someone please mark my 25 markers for AQA a level economics, my teacher is useles
