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microeconomic reform brings about structural change in the economy --> micro reform aims to target certain sectors/areas/industries in the economy to solve structural problems that cannot be solved by cyclical factors (eg ageing population, inefficient industires etc must be solved by changing...

savings function is -1000 + 0.25(Y) if Y = 8000, then Savings= -1000 + 0.25(8000) = $1000 which equals investment (since investment increased by $500 from $500 at new equilibrium)

I am guessing something related to international business cyclec and globalisation....with the whole thing on SARS and terrorism and US mild recession and stuff having impacted on Australia last year and this year......it might just come up.......but that's just a guess....

You guys should be careful in these questions. I always used to get them confused...you should ask your teacher because the formula for real GDP is Real GDP = nominal GDP x base CPI/current CPI Base CPI is always equal to 100.....so you would see in some textbooks that the formula is...

If you look in the 2003 hsc eco paper, that diagram is in the short answer questions on page 16......so i think you would have to know it........it's your demand and supply for cash diagram that you should have learnt in year 11 when doing financial markets

It's the demand and supply of cash in the short term money market diagram, where you have your supply (which is vertical since RBA has monopoly power over supply of cash) and your demand which is downward sloping. The equilibirum point determines the cash rate and the quantity of cash in the...

when you draw your demand and supply graph, an exchange rate above equilibrium means supply is greater than demand, which means you have excess supply.....because the exchange rate will not move with market forces (as aditya explained before), then central bank must buy this excess supply in...

yeah i agree with too lazy...i dont' think we should be trying to get technical with the terms of the question. I mean you could always define them in your essays, but I don't think you'd just concentrate on X=M if you were asked about external stability..........this is because what the govt...

Do you have to be in a certain year to do that? Cos i wanted to do it but I dont' knwo when we are allowed......certainly not first years right? hehehe.

Just one more tip on your essays...try to actually write several essay plans even if you don't get the time to practice your essays on questions you think might be in the test. This way you will actually know what your structure and plan would be, and you have all thes things you need to talk...

Well that's the consumption formual C = Co + MPC(Y) OHHHH i know where i went wrong now.... cos C = 1000 + 0.75Y at equilibrium Y = C + I = C + S therefore Y = 1000 + 0.75Y + 500 therfore, 0.25Y = 1500 Y = $6000 and again with simple multiplier, chang ein national income is...

Hey peoplez, hope you guys are surviving this HSC period...hehehe. I've just found some notes I took on CHina last year from this textbook from the dept of foreight trade and affairs (DFAT)........which was a really good book. I thought that you guys may be having trouble finding last...

Hmm so what's the answer? Cos I got $6000...... Y = 1000 + 0.75(Y) therefore equilibrium income originally was $4000 and k = 1/1-0.75 = 4 therefore change of I by $500 makes equilibirum income change by $2000..... therefore new equilibirum income is $6000?.... i must've gone wrong...

Well my tip for this year's essay.... I am pretty much leanings towards a policy question in relation to external stability, with our CAD and foreign debt and what not. It hasn't come out as a policy question yet....so that's my best bet. with the other two essay questions on...

Full employment essay...

By the way all HSCers, my predictions for this year's eco essay is that there is going to be at least one policy question on external stability. I guessed last year there'd be unemployment or inflation, and both came up! So I wrote essays for both those topics beforehand and handed it to my...

Crowding out: think of one big circle that is split into government and private sector --> when govt budgets for a deficit, govt must borrow from private sector (ie financial sector etc) to finance this deficit......which leaves no room for households and bsuinesses to borrow to invest --> this...

Yeah that's okun's law....which states that for unemployment to actually decrease, eco growth must grow faster than productivity growth

Sample economic essay Hey just one of the essays i typed up from last year...I'm hoping to type up the other ones and get them up there for you guys ready for the HSC! how very exciting! :D

hahaha...yeah you should always be sayign that nowadays fiscal policy only acts as an adjunct to monetary policy and has no real effect on the eocnomy in the long run (other than increases prices etc.....but that's uni stuff ;) ) it jsut shows you're analysing yoru policies and not just stating...