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You say that the nairu cannot be decreased, and any stimulas to AD will just cause inflation. well.....this is why it causes in flation; Because people are demanding more business need to employ more individuals to cope with this increase in demand. however the only people left to employ are...

I agree with 7 = C. Unemployment can be reduced past the nairu. also, an price increase is inflation.

Meh you might be right. i just saw it as external stablity is made up of CAD, exchange rate, terms of trade, and net foreign debt. if you wernt borrowing i thought it would be ok

Yeah i got 17.A aswell

Selling bonds to overseas? isent that equity financing not debt?

Even if any economy is at its nairu it can still go below that its just inflationary. For example a business can employ a phycopath however he will not be productive but he will still get a wage leading to inflation. the natural rate of unemployment in made up of structual unemployed and what...

For 12 i got B. both B and D are ways to fund a surplus. but D will create a crowding out effect making people go overseas to borrow, hence increasing foeign debt, a key component of external stability.

For 7 i got C. macroeconomics can be used to bring employment below the natural unemployment rate at the cost of increased inflation. so intitially unemployment will decrease and inflation will rise. then evenutally unemployment will trend back towards the natural rate as businesses lay of...

hey how did people go in mc..... i got; 1.A 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 Personally i found mc the hardest. the essays where very nice and short answer was also good. (btw i know i got Q.1 wrong in mc lol....the dubble negatives allways...