Exam Day Thinking

Question 1

What does a current account deficit mean?

Answer 1

M>X
Owing the world

Question 2

What are the consequences of a current account deficit?

Answer 2

Lower AD
As (X-M) is negative

Loss of investment
Less confidence
Money moved away
Deflation
Larger debt

Question 3

What does the current account do?

Answer 3

Measures the trade in goods and services

Question 4

What are the MEOs?

Answer 4

Trade (balance of payments)
Inflation
Growth
Employment
Redistribution of income

Question 5

Equation for the multiplier effect

Answer 5

1 / (1-MPC)

Question 6

What is the multiplier?

Answer 6

Process by which any changes in the components of AD will lead to an even greater change in national output

Question 7

What is accelerator?

Answer 7

Process when changes in investment can be directly linked to changes in the rate of GDP growth

Question 8

Which line is MSB and MPB?

Answer 8

Demand

Question 9

What are the lines for MSC AND MPC

Answer 9

Supply

Question 10

If the negative externalities are in consumption, what would the graph look like?

Answer 10

Marginal private benefit > marginal social benifit

Question 11

If the negative externalities are in production, what would the graph look like?

Answer 11

MPC>MSC

Question 12

If the positive externalities are in consumption, what would the graph look like?

Answer 12

MSB>MPB

Question 13

Welfare loss triangles

Answer 13

Question 14

Welfare loss triangles

Answer 14

Point left

Question 15

Price max/ceiling diagram

Answer 15

Question 16

Philips curve

Answer 16

Question 17

Index number formula

Answer 17

( Raw number / base year raw number ) x 100

Question 18

4 marker structure

Answer 18

Explain in detail

USe data effectively
- calculate average / differences

Question 19

9 marker structure

Answer 19

Define all key terms and explain question
1) diagram,
2) explain each axis / feature
3) theories and applications
NO EVALUATION

Question 20

25 intro

Answer 20

Definitions
Context
State what you will talk about

Question 21

25 marker points

Answer 21

FOR
AGAINST
1) state point
2) diagram
3) explain diagram
4) chains
5) quotes and examples (eg. Strain on health systems)
6) evaluate

Question 22

25 marker conclusion

Answer 22

Answer the question clearly
Justify by highlighting most important argument
State conditions (as long as) (any policies needed alongside)
SR/LR