TYS 2014 CSQ2 by Deborah How https://padlet.com/deborahhowly1/9z0j4hbx0p9b Made with ♥ en-us 2018-02-20 00:57:41 UTC 2018-02-20 02:14:55 UTC hello@padlet.com (b) Explain how productivity and living standards are related. [2] deborahhowly1 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233095377 Higher productivity means workers tend to earn more money so they can buy more things and thus improving their living standards

How can the underlined words above be changed or what additional words can be added to improve the quality of the answer?

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]]> 2018-02-20 00:59:22 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233095377 (c) Explain how the cut in interest rates suggested in Extract 4 might ‘spur growth’. [3] deborahhowly1 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233095630 Lowering interest rates raises consumption and investment. Aggregate demand increases thus spurring growth.
 
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]]> 2018-02-20 01:00:36 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233095630 (d) Explain how three of the supply-side factors identified in Extract 5 might affect the productivity of an economy. [6] deborahhowly1 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233097565
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]]> 2018-02-20 01:10:47 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233097565 Group 2 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106096 b) When productivity is increased, it will lead to an increase in wages. Hence, disposable incomes increases allowing consumers to purchase more goods and services, raising the material standard of living. 

c) A cut in interest rates decreases the costs of borrowing and this results in an increase in autonomous consumption as consumers have more credit. Investment also increases as the marginal efficiency of investment increases with a fall in interest rates. These factors constitutes an injection into the circular flow of income creating an expansionary effect on the economy.

d) 2 5 12

]]> 2018-02-20 01:57:23 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106096 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106103 2018-02-20 01:57:26 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106103 group 1 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106107 (b) Higher productivity will lead to actual growth thus real national income increases thus disposable income increases so purchasing power increases, increasing their material standard of living.

(c) By cutting interest rate, cost of borrowing for firms decrease as expected rate of returns increase, increasing investment. Cost of borrowing for households also decrease so demand for consumer durables increase, increasing autonomous consumption. Thus AD increase to 'spur growth'.

(c)
2,12, 6]]> 2018-02-20 01:57:28 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106107 Group 4 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106123 (b)  productivity means workers tend to earn a higher disposable income and thus higher purchasing power to increase consumption and hence material standards of living. 
(c) cut in i/r decreases cost of borrowing and thus increases uptake of loans and credit, leading to an increase in consumption and investment, ]]> 2018-02-20 01:57:37 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106123 Grp 3 https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106195 a)

b)
Higher productivity results in higher national income, which increases their disposable income that increasing their autonomous consumption, increasing their material standard of living
c)
When the central bank lowers interest rate, commercial banks will lower their interest rate as will, resulting in lower cost of borrowing. This increases the autonomous consumption as well as investment, therefore increasing the net aggregate demand ]]> 2018-02-20 01:58:25 UTC https://padlet.com/deborahhowly1/9z0j4hbx0p9b/wish/233106195