AS Level Economics – Unit 2 Workshop Mr. Spicer

Structure of revision workshop Unit 2 format Work through June 2010 paper short answer questions: – Question 1 Main themes introduced/recapped using videos Questions discussed/answered. – Question 2 Main themes introduced/recapped using videos Questions discussed/answered. Work through June 2010 essay questions Examples of other essay questions

Unit 2 format Unit 2 (6EC02): Managing the Economy – Friday 27 th May (am) 50% of AS grade Time: 1 hour 30 minutes Answer EITHER Question 1 OR Question 2 - Indicate which question you are answering (1 or 2). The total mark for the paper is 80. The marks for each question are shown in brackets - use this as a guide as to how much time to spend on each question. Basics: Use black ink or ball-point pen. Fill in the boxes at the top of this page with your name, centre number and candidate number. Write answers in the spaces provided. Multi-choice would be nice!

June 2010 – Short answer questions: Question 1 Themes: 1.Fiscal policy Fiscal policy and the multiplier effect. Video (9.10) Fiscal policy. Video (4.35) 2.Monetary policy Monetary policy. Video (7.19) 3.Unemployment Unemployment. Video (2.20) Types of unemployment. Video (4.20)

June 2010 – Short answer questions: Question 2 Themes: 1.Inflation What is inflation? Video (5.15) Inflation explained (and how linked to unemployment). Video (5.05) Inflation rates – How are they calculated? Video (9.52) 2.Macro economic goals Macro economic goals of government. Video (7.20) 3.Aggregate demand and supply AD & AS. Video (5.33)

The essay plan - a suggested model

June 2010 – essay questions 1.Evaluate the likely effects of a recession (negative economic growth) on the UK Economy 2.Evaluate three ways in which economic policy can be used to ‘stimulate UK economic growth’ (Extract 1, lines 4 to 5).

Examples of other essay questions 1.Compare the effectiveness of supply side and fiscal policies to correct deficits on a country’s current account of the balance of payments. 2.Assess the economic effects of a significant increase in taxation on the UK economy. 3.Both the UK and US balance of payments accounts are recording large deficits on their trade in goods balance. Do such deficits matter? Justify your answer. 4.Discuss the factors that determine the trade competitiveness of the UK economy 5.A government is faced with an unacceptably high level of unemployment, but does not wish to increase its overall expenditure. Discuss alternative policies for reducing unemployment. 6.Explain the possible causes of economic growth. 7.Explain how a fall in the rate of inflation might be achieved by both demand-side and supply-side Policies. 8.Discuss the impact of an increase in interest rates

Examples of other essay questions 9.Discuss how the government might improve the UK’s long term Economic growth 10.Explain how a decrease in government spending can result in a greater change in the equilibrium level of national income. 11.Discuss Factors that may limit growth rates in different countries. 12.Discuss the problems an economy might face in recovering from a period of recession? 13.Assess the impact on UK macroeconomic performance of a prolonged period of deflation. 14.Evaluate Government Policies which might improve the UK Balance of trade in goods and services 15.Discuss the role of supply side policies in improving rates of economic growth. 16.Discuss the impact of a rise in the savings ratio on the UK economy.

Examples of other essay questions 17.Evaluate the importance of managing aggregate demand to bring about a sustained reduction in the rate of unemployment in the UK economy. 18.Discuss whether Government policies can overcome a recession 19.Discuss the economic effects of an increase in the inflation rate. 20.Discuss the impact of an increase in government expenditure on the UK economic performance 21.Discuss the relative merits of interest rates and tax increases as a means to control inflation in the UK 22.Discuss the effects of a rise in Exports on UK aggregate Demand 23.Discuss the extent to which shifting resources into the public sector will help the government achieve its macro economic objectives. 24.Discuss effectiveness of a cut in the rate of interest in influencing consumption and investment