Drawing diagrams is crucial for achieving LEVEL 3 in the 12-mark essays. For 8-mark questions, unless specifically requested or for analysis related to PES and PED in AO2, drawing diagrams is generally not necessary.
Microeconomics: Analysis can mostly be described using supply-demand diagrams.
Macroeconomics: Generally uses the AD-AS model. To describe current situations, simply draw AD-SRAS. However, for deeper discussions on issues like full employment or excessive spare capacity, consider incorporating a Keynesian LRAS (Long-Run Aggregate Supply) diagram.
Points to note
Axis Labels: Ensure that your axes labels are precise, such as using "price level" instead of just "price," and "real output (Y)" instead of "quantity” in AD-AS diagrams.
Equilibrium: Clearly denote the coordinates of equilibrium points on your diagrams.
Diagram Size: Avoid tiny diagrams that strain the examiner's eyes. Aim for diagrams that occupy around one-third of the line paper's size, ensuring readability and clarity.
How to Refer to Diagrams
Merely including diagrams in your essay isn't sufficient; you must also effectively integrate them into your discussion to score Level 3 points. Provide specific details about the changes depicted in the diagram.
Mistake: "Aggregate demand increases, so real GDP increases, and price is also higher (Diagram 2)."
Sample Write-up: "Aggregate demand increases to from AD1 to AD2, as shown in Diagram 2. There will be economic growth as real GDP increases from Y1 to Y2, subsequently leading to higher national income and a higher standard of living. Cyclical unemployment will also decrease. However, there will be demand-pull inflation as the price level rises from P1 to P2."
Incorporating diagrams effectively into your economics essays not only enhances the clarity of your arguments but also demonstrates a deeper understanding of the underlying economic concepts. By mastering the art of diagram usage, you can elevate the quality of your essays and achieve higher grades in your examinations.
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