Economics paper 22

[ibadsiddiqi]

There isn't a separate thread for econ p22(or atleast i think there isn't). So thats why im creating this thread! Anyone with any problems or notes or well anything related to economics can post here. Cheers and Good Luck!

 

[ibadsiddiqi]

Can anyone tell me the relationship between the external economy and the internal economy? Like for example if there is inflation in the internal economy then what happens in the external economy?

 

[Agassi Cazaubon]

Can anyone tell me the relationship between the external economy and the internal economy? Like for example if there is inflation in the internal economy then what happens in the external economy?

What ? Lol is that even in the syllabus ?

 

[ibadsiddiqi]

What ? Lol is that even in the syllabus ?

i dunno! but i think we shud know what that means!..

 

[Agassi Cazaubon]

i dunno! but i think we shud know what that means!..

Dude I'm pretty sure you don't need to know that and there really is no point of learning useless stuff before an exam.. maybe some other time if you want to expand your knowledge

 

[ibadsiddiqi]

Dude I'm pretty sure you don't need to know that and there really is no point of learning useless stuff before an exam.. maybe some other time if you want to expand your knowledge

hahahaha yea well i guess ure right about that!

 

[mr.ives_94]

lool I'm pretty sure A level candidates need to know that but not sure about AS.
and the inflation question you posted has to do with effects of inflation. so:
- increase in prices will affect your exports which makes them more expensive (therefore less competitive) and it will have a negative affect on the current account
- increase in prices also affects Exchange Rate as according to Purchasing Power Parity, the price of the basket of goods will go up thus ER goes down.
it is part of the syllabus but not under the exact point that you asked

 

[ibadsiddiqi]

lool I'm pretty sure A level candidates need to know that but not sure about AS.
and the inflation question you posted has to do with effects of inflation. so:
- increase in prices will affect your exports which makes them more expensive (therefore less competitive) and it will have a negative affect on the current account
- increase in prices also affects Exchange Rate as according to Purchasing Power Parity, the price of the basket of goods will go up thus ER goes down.
it is part of the syllabus but not under the exact point that you asked

thanks

 

[mr.ives_94]

no problem but please check your notes xD I don't want to be the source of any mistakes
good luck though