5.1 Paraphrasing Introduction
Paraphrase the article into a concise summary, including direct quotes where relevant. Make sure to capture the main points in your own words while using direct quotes sparingly and only when they add value.
News article |
Rising gas prices and soaring mortgage and rent costs drove inflation higher than expected in March, intensifying the financial strain on Americans and potentially prolonging the Federal Reserve's tight monetary policy.
The Consumer Price Index (CPI) revealed a 3.5% annual increase for the 12 months ending in March, up from February's 3.2% rate, according to the Bureau of Labor Statistics. This marks the steepest annual inflation rise in six months.
The report underscores the challenges of reducing inflation, as persistent cost pressures continue to burden households. It also signals that the Federal Reserve may need to maintain higher interest rates for an extended period, delaying any potential easing of monetary policy. |
Quoted Improved
Initial Writing
The article discusses the United States’ “CPI revealed a 3.5% annual increase” from “February's 3.2%”, and marks the highest rise in six months. High gas prices and housing costs are driving this inflation, which is prolonging Americans' financial strain. The Federal Reserve may keep interest rates high to address inflation to reduce aggregate demand and stabilize prices.
While the summary introduces contractionary monetary policy, it does not fully define the term or explain its effects on stakeholders. Key economic terminology is included but not used consistently.
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Criterion B: Level 1 Relevant economic terminology is present (e.g., contractionary monetary policy) but lacks consistent, appropriate use.
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Criterion C: Level 1 – Contractionary monetary policy is mentioned but not fully applied to analyze its effects or implications.
Improved Writing
The article discusses the United States’ “CPI revealed a 3.5% annual increase” from “February's 3.2%”' and marks the highest rise in six months. High gas prices and housing costs drove this increase, exacerbating financial pressure on households. To combat inflation, the Federal Reserve is likely to maintain 'punishing rates higher for longer,' showcasing its use of contractionary monetary policy to reduce aggregate demand by curbing consumer and business borrowing. This policy aims to shift aggregate demand leftward, alleviating price pressures, but risks slowing economic activity further, potentially affecting consumers and businesses differently.
This version clearly defines contractionary monetary policy and explains its effect on aggregate demand and stakeholders, integrating economic terminology appropriately throughout.
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Criterion B: Meets Level 2 – Terminology (e.g., contractionary monetary policy, aggregate demand) is consistently defined and applied throughout.
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Criterion C: Meets Level 2 – Economic theory is appropriately applied, explaining the policy's effects on aggregate demand and stakeholders.
5.2 Theory Explanation in Outline
A common mistake students make is identifying key concepts but not explaining how those concepts actually work. It’s natural to assume the reader understands, but here, you need to break it down clearly.
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Initial Writing | Improved Writing |
“Sugary drinks create negative externalities because their consumption leads to societal costs, such as higher healthcare expenses due to obesity and diabetes. These external costs are not reflected in the market price of sugary drinks, causing overconsumption. This results in market failure, as the private costs of producing and consuming sugary drinks do not include the external costs borne by society. Policymakers can address this issue by introducing a tax on sugary drinks to discourage consumption.” | “Sugary drinks create negative externalities because their consumption imposes additional costs on society, such as higher healthcare expenses resulting from obesity and diabetes. These costs, known as external costs, are not reflected in the price consumers pay for sugary drinks. As a result, the market price represents only the private cost, leading to overconsumption and market failure. Market failure occurs because the market does not allocate resources efficiently, with too many sugary drinks being consumed relative to the socially optimal level. Policymakers can address this issue by introducing a tax on sugary drinks, which adds the external cost to the price. This encourages consumers to reduce their consumption, aligning private decisions with societal welfare.” |
This version provides a clearer explanation of the issue but still lacks depth in defining key terms like market failure and does not thoroughly explore how taxes work to internalize external costs. | This version defines key terms, explains the root cause of overconsumption, and describes how a tax works to correct the issue, providing a more thorough and analytical explanation. |
Criterion B - Level 1
Relevant terms like negative externalities and market failure are mentioned but not fully defined. | Criterion B - Level 2
Terminology like negative externalities, external costs, and market failure is defined and consistently applied. |
Criterion C - Level 1
The theory is applied but lacks detailed analysis of the problem and solution. | Criterion C - Level 2
The theory is explained step-by-step, analyzing the problem and proposing a clear solution. |
5.3 Deepen Your Explanation in Analysis
Connect theory to the case thoroughly. Go beyond your diagram by explaining how real-world factors might cause different outcomes than theory predicts.
Ask yourself: How well does the theory explain the case? Show links between theoretical aspects to make your analysis complete. Don’t evaluate yet—just fully explain the theory’s application.
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Initial Writing | Improved Writing |
“The supply curve shifts inward due to the drought, reducing the quantity available in the market. This creates excess demand from Q1 to Q2 at the original equilibrium price (P1), putting upward pressure on price. Producers then raise prices to restore equilibrium, resulting in higher prices and lower quantities demanded.” | “The supply curve shifts inward, caused by the drought, means that for any given price, less is supplied. This creates excess demand from Q1 to Q2 at the original equilibrium price (P1), putting upward pressure on price. Producers respond to this by raising their prices to P2, moving the market to a new equilibrium where the quantity demanded matches the lower quantity supplied at Q2. As a result, consumers face higher prices, reducing their purchasing power, while producers experience a decline in total output, which may affect their revenue despite higher prices.” |
While this version includes a basic explanation of excess demand and price pressure, it doesn’t explain why producers raise prices, the role of signals in the market, or the impacts on stakeholders like consumers and producers. | This version expands on the initial writing by including key steps, defining terms, and highlighting stakeholder impacts, making it more detailed and analytical. |
Criterion B - Level 1
Includes key terminology like supply curve and excess demand, but the terms are not fully explained or consistently applied. | Criterion B - Level 2
Terms like supply curve, excess demand, and equilibrium are defined and applied appropriately. |
Criterion C - Level 1
Theory is mentioned but lacks depth in application and analysis of stakeholder impacts. | Criterion C - Level 2
Theory is fully applied to explain market changes and their implications for stakeholders. |
5.4 Linking Evaluation to Key Concept
Since you chose the WISE ChoICES concept, linking your evaluation back to it ensures focused, relevant analysis. This approach highlights how informed choices impact outcomes, reinforcing a strong, concept-driven perspective in your work.
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Initial Writing | Improved Writing |
Scarcity of environmental resources means a carbon tax makes carbon-intensive goods more expensive, encouraging consumers to choose cleaner alternatives. By reducing consumption of harmful products, the policy helps lower pollution levels. However, it may burden low-income households with higher costs. | Scarcity of environmental resources drives the need for a carbon tax to reallocate limited resources more efficiently. By increasing the price of carbon-intensive goods, the tax discourages their consumption and encourages consumers to opt for cleaner alternatives. Producers are also incentivized to innovate and adopt sustainable practices. This policy corrects the imbalance where the market fails to account for environmental costs, aligning private decisions with societal welfare. Although low-income households may face higher costs, the tax ultimately promotes better resource management and reduces pollution, offering significant long-run benefits. |
This evaluation lacks depth and doesn't explore the broader implications of the carbon tax, such as long-term benefits or market failure. It focuses primarily on the immediate effect of higher costs without addressing potential solutions or how the policy encourages innovation. As a result, it presents a one-dimensional view of the issue. | This evaluation provides a well-rounded analysis, addressing both the benefits and challenges of the carbon tax. It explains how the tax encourages cleaner alternatives and innovation while acknowledging its impact on low-income households. The evaluation also emphasizes long-term advantages, making it a more balanced and insightful argument. |
Criterion B – 2
The evaluation uses relevant terms like carbon tax and cleaner alternatives but lacks deeper economic concepts like market failure or externalities. The terminology is appropriate but not fully developed or explained.
Criterion D – 2
Does not link back to the key concept chosen.
Criterion E – 2
Limited depth, only briefly mentions trade-offs and lacks exploration of broader or long-term effects. | Criterion B – 4
The evaluation uses precise terms like market failure, internalizing externalities, and resource allocation with clear definitions, demonstrating a strong understanding of economic theory.
Criterion D – 3
Key concept is referenced throughout, specifically explaining in detail how welfare is loss through impacts on different stakeholders.
Criterion E – 4
Balanced and thorough, addressing both benefits and challenges with a nuanced, long-run perspective. |
5.5 Effective Conclusion
Your conclusion must summarize your main points in 2-3 sentences. Focus on:
1.
The reason behind the policy implementation.
2.
Its intended effects.
3.
A brief evaluation of the policy's impact.
Do not introduce any new ideas here—this section is for wrapping up your analysis, not starting new discussions!
Improved
Initial | Developed |
The policy was implemented to address unemployment caused by the pandemic. It aimed to stimulate demand and support economic recovery. While effective in the short term, it carried risks such as inflation | The policy targeted pandemic-driven unemployment by stimulating aggregate demand through fiscal measures. While this achieved short-term recovery, the inflation risk raises concerns about its sustainability. Balancing economic growth with inflation control remains crucial to long-run welfare, particularly for low-income households. |
The initial conclusion is too brief and doesn't fully tie back to the key concept of welfare or consider the impact on relevant stakeholders, such as low-income households. It lacks depth and leaves out key elements discussed earlier in the essay. | The developed conclusion is stronger because it ties the policy’s effects back to the key concept of welfare and acknowledges the impact on stakeholders like low-income households. It wraps up the analysis more effectively by linking earlier points together. |