Follow the news - davos

An interesting insight into the world economy from the great thinkers in economics:

http://www.guardian.co.uk/business/economics-blog/2013/jan/27/ultimate-davos-debate-marx-keynes

Euro crisis and the Pound

The following articles in the Economist raise issues about the pound strengthening against the Euro and it likely impact on the UK economy, assuming demand for UK exports is price elastic:

http://www.economist.com/node/21529049

http://www.economist.com/blogs/dailychart/2010/12/europes_economies

However whilst this suggests UK exports might becoming more price competitive in the Euro zone are we likely to see a rise in the value of UK exports. Also given current uncertainty regarding UK membership of the EU what is happening to the pound?

13 EC Consolidation work 21 Jan

Attempt the following questions from data question June 2008; also good for ECON 2 re-sit:

Either provide draft outlines or full responses, we will be going over these questions and 25 mark essay planning next lesson.

Q1

(a) Using Extract A, compare the CPI and RPI measures of UK inflation for the period

2000 to 2006.

(4 marks)

(b)

Extract B (lines 12–13) suggests that ‘low inflation is vital for sustained economic

success’. Explain two economic benefits of low inflation for an economy. (6 marks)

(c)

Extract B (lines 15–17) argues that, with accelerating inflation, ‘higher unemployment is likely, affecting both the economy and individuals’. Analyse three possible economic effects of higher unemployment.

(10 marks)

(d) Using the data and your economic knowledge, discuss the extent to which increases in the

money supply may increase the rate of inflation in an economy. (25 marks)

http://store.aqa.org.uk/qual/gceasa/qp-ms/AQA-ECN6-W-QP-JUN08.PDF

A2 January consolidation homework

Answer for homework essay question 2b from June 2007 ECN 6 paper; useful for those retaking Unit 2 and for Unit 4 exam.

AS Economics Tuesday 8th Jan lesson

A large number of you were preparing for your Business exam today - so you need to be aware of what we covered in today's lesson.

Most importantly be aware that you need to prepare for a practice exam question on Tuesday 15th January, this includes a 30 mark essay question.

To help you with this:

1. Illustrate the likely impact of a cut in Government spending using and AS/AD diagram.
2. Discuss the likely impact of lower inflation on three macroeconomic objectives?

AS res-sit sessions January

Unit 1 - Thursday 10th January and pre exam session Monday 14th Room 1 3.15-4.15pm

Unit 2 - Thursday 17th January and pre exam session Thursday 24th Room 1 3.15-4.15pm