econ110 compulsory questions (1 Viewer)

[zxl]

i think you are just looking at the sign of (α. + NLF. – Y) to be either positive, negative or zero, which respectively relates to rising, falling and constant U...am i right? :X

 

[-=«MÄLÅÇhïtÊ»=-]

Originally posted by Mein
Ok I think I understand how to explain it.

and wats dat?

 

[Mein]

This is what I got for 2001

1B
2D
3A
4C
5B
6D
7D
8A
9C
10B
11A
12B (A is incorrect because Current Account does change, due to NIPO changing)
13D
14D
15D
16D
17C (I'm pretty sure that this is the correct answer radio head - I did the graph and everything)
18B
19A
20C
21?
22D (kind of a guess)
23B
24C

 

[Grizzly]

Originally posted by Mein
17C (I'm pretty sure that this is the correct answer radio head - I did the graph and everything)

Diagramitcally, and mathematically, i cant see how its C.

Using this; CD=t (Y^b - Y )
if decreasing the tax rate, shouldnt the CD fall ?

Then, looking at option A.
using, SD = Go - ( To + t.Y^b )
SD should increase.
IF SD +ve, then , BD = SD + CD ... CD must fall ?

I drew it up too, with the "flatter" FP line due to decrease in t but i dunnno...

 

[Grizzly]

Mein, for "21?"
I think its B.

use , Pdot = M^sdot - Ydot

Given; M^sdot = 10, and Ydot = 3
Pdot = 10-3 = 7%pa

Anyone agreee ?

 

[radiohead]

Mein,
Q12B is also incorrect: Ms will inc. A is relatively more correct than B.
For 17, as t dec --> Y inc ---> CD dec (equ pos. moves to the right). And cant tell if BD inc or dec, it depends on ur drawing.
21, i used the equ Ms. =Y. + P. ,i think 5% and 1% is irrelevent in this que. not very sure abt it
22 is D for sure, as E = Ne / Np. Np is unchanged, but Ne goes up.

 

[Mein]

Ah yes, I looked over 12 and now get the same answer.

My logic was that if the government lowers taxes, its getting less income and therefore, the budget deficit increases (providing G is constant). But now I concur with your response.