Section I: Multiple Choice (2 Viewers)

[Scissors]

damn! i got 14.

 

[runnable]

This is what i got...

1)D
2)B
3)D
4)B
5)A
6)D
7)C
8)C
9)C
10)A
11)A
12)B
13)C
14)A
15)C
16)D
17)A
18)B
19)C
20)B

CAN SOMEONE PLEASE MARK MINE im hoping for 20/20,

anybody differ in opinion on any>?

7 = A.

I only looked till there.

 

[seano77]

This is what i got...

1)D
2)B
3)D
4)B
5)A
6)D
7)C
8)C
9)C
10)A
11)A
12)B
13)C
14)A
15)C
16)D
17)A
18)B
19)C
20)B

My friend got D, could well be right

I thought D might be wrong, as it contributes to the 'crowding out' effect and thus increases dependence on foriegn funds, adding to financial liabilities, worsening the CAD which is a measure of external stability

I think you got 18. 7 is A and 12 is D. Read back in thread to find out why..

 

[runnable]

I reckon I got 20/20. Go me.

 

[echmo91]

for 7
from dixon textbook:
long run phillips curve...economy starts at point A, with an unemployment rate of 5% and 0% inflation. if the government operates expansionary macroeconomic policy...the economy will move to point B, with a lower rate of unemployment, 3% but higher rate of inflation 2%.

 

[AWrules]

Thanks for taking the time to mark mine

Okay 7 im pretty sure is C, it would reduce unemployment but be inflationary
pretty certain, basic concept of NAIRU?

and 12 i mainatin that the 'crowding out effect' increased the CAD and so should be D?

anyone agree with me?

 

[runnable]

for 7
from dixon textbook:
long run phillips curve...economy starts at point A, with an inflation rate of 5% and 0% inflation. if the government operates expansionary macroeconomic policy...the economy will move to point B, with a lower rate of unemployment, 3% but higher rate of inflation 2%.

Yep. But the question had the economy already at NAIRU.

 

[runnable]

Thanks for taking the time to mark mine

Okay 7 im pretty sure is C, it would reduce unemployment but be inflationary
pretty certain, basic concept of NAIRU?

and 12 i mainatin that the 'crowding out effect' increased the CAD and so should be D?

anyone agree with me?

Sry 7 = a

because

For 7, unemployment will increase because hidden unemployment will decrease due to better economic conditions, hence increasing unemployment in the short run.

 

[seano77]

Thanks for taking the time to mark mine

Okay 7 im pretty sure is C, it would reduce unemployment but be inflationary
pretty certain, basic concept of NAIRU?

and 12 i mainatin that the 'crowding out effect' increased the CAD and so should be D?

anyone agree with me?

You can't reduce unemployment past the NAIRU without structural change. Thus the increase in AD only adds to inflation.

 

[echmo91]

Yep. But the question had the economy already at NAIRU.

so does the textbook example... =S

 

[runnable]

so does the textbook example... =S

Sry I dun have that textbook so I cant confirm but...

Sry 7 = a

because

For 7, unemployment will increase because hidden unemployment will decrease due to better economic conditions, hence increasing unemployment in the short run.

 

[nicholas1212]

Sry 7 = a

because

For 7, unemployment will increase because hidden unemployment will decrease due to better economic conditions, hence increasing unemployment in the short run.

fail. its a philips curve
L2economics

my answers: (99% sure its 20/20)
1.D
2.B
3.D
4.B
5.A
6.D
7.C
8.C
9.C
10.A
11.A
12.D
13.C
14.A
15.C
16.D
17.A
18.B
19.C
20.B

 

[runnable]

fail. its a philips curve
L2economics

Sry I think you didnt get all right. Cuz 7=A. No mention of inflation whatsoever in the question, so not sure why you brought in the philips curve.

 

[christiina.h]

This is what i got...

1)D
2)B
3)D
4)B
5)A
6)D
7)C
8)C
9)C
10)A
11)A
12)B
13)C
14)A
15)C
16)D
17)A
18)B
19)C
20)B

CAN SOMEONE PLEASE MARK MINE im hoping for 20/20,

anybody differ in opinion on any>?

i think 12 is (d), just from doing loads of questions about funding budget deficits, but there has been some argument about that if you read above
but otherwise i got exactly the same, just there's been argument about Q7, whether it was (a) or (c) so unsure about that

 

[seano77]

fail. its a philips curve
L2economics

my answers: (99% sure its 20/20)
1.D
2.B
3.D
4.B
5.A
6.D
7.C
8.C
9.C
10.A
11.A
12.D
13.C
14.A
15.C
16.D
17.A
18.B
19.C
20.B

19. You got 7 wrong. Its A. The definition of the NAIRU is that its the rate where any increase in aggregate demand adds to inflation. Unemployment cannot be decreased past this point without structural change.

 

[AWrules]

Runnable: i don't see how it insinuates that

macquarie guide page 100:

"if demand management policies, such as expansionary fiscal policy or loose monetary policy (wich increase aggregate demand), reduce unemployment below the NRU, the lower unemployment is accompanied by inflation"

So 7) C Yes??

 

[nicholas1212]

Sry I think you didnt get all right. Cuz 7=A. No mention of inflation whatsoever in the question, so not sure why you brought in the philips curve.

7 makes reference to a philips curve natural rate of unemployment = NAIRU - where any subsequent decrease in unemployment leads to greater gains in inflation negating positive growth accruing from increased employment. Im right with 7, everyone else here is wrong, look up the philips curve its bleeding obvious if your any good at the subject.
no offence to anyone intended

 

[Q2C-ME]

Hmmm...i think you guys are worying about the wrong thing....i got all the same answers as you except one...which was question 1

my teacher who is hsc marker and helps that dixon fella confirmed that 1 is A
think about it man...their are so many developing economys in the middle east for you to come out and say that their all dependent on agricutlre is stuipd....because thats sooo niche....commodities then yes

i honestly reckon the answer is A...and it will shock everybody...thats what he said...so in essence i am the one with 20/20...muahahahahah

 

[AWrules]

i agree with u seano on 7 and 12 havent checked the others

 

[nicholas1212]

Runnable: i don't see how it insinuates that

macquarie guide page 100:

"if demand management policies, such as expansionary fiscal policy or loose monetary policy (wich increase aggregate demand), reduce unemployment below the NRU, the lower unemployment is accompanied by inflation"

So 7) C Yes??

thank you, someone with half a brain,
7=C