Question 7 (3 Viewers)

[8th1da]

This question required basic economic theory.
If you relate this question back to the philips curve, you cant have simultaneaously high unemployemnt and inflation (unless it was like the oil shocks), therefore you can immediatly rule out 7 A and D, hence the only logical answer is C

 

[runnable]

This question required basic economic theory.
If you relate this question back to the philips curve, you cant have simultaneaously high unemployemnt and inflation (unless it was like the oil shocks), therefore you can immediatly rule out 7 A and D, hence the only logical answer is C

Philips curve also said there can't be low unemployment and low inflation. Look at Australia in recent years, obviously not a set rule. But a more concrete rule is the NAIRU cannot be decreased through growth.

 

[shakky15]

Philips curve also said there can't be low unemployment and low inflation. Look at Australia in recent years, obviously not a set rule. But a more concrete rule is the NAIRU cannot be decreased through growth.

yes this thread really is becoming repetitive. i say c. if it was a then i wont complain. i see the logic in your arguments, runnable, but i still think C is the answer.

i shall wait patiently until the bOS releases the answers (anyone know when that is?).

 

[revo]

its c, i just asked glen stevens

 

[Dimplez]

This question required basic economic theory.
If you relate this question back to the philips curve, you cant have simultaneaously high unemployemnt and inflation (unless it was like the oil shocks), therefore you can immediatly rule out 7 A and D, hence the only logical answer is C

This depends on whether the question was testing us on the Phillips Curve or an understanding of hidden U. I'm not convinced either way but I thought A was the more correct answer. It could be either one though.

 

[Terlob]

its c, i just asked glen stevens

lol, you have his phone number?

 

[kooltrainer]

EVERYBODY SDFU, GO TO PAGE 361 OF TIM DIXION'S BOOK "AUSTRALIA IN THE GLOBAL ECONOMY"

TOP LEFT HAND SIDE IS A GRAPH THAT EXPLAINS IT ALL

THE ARROW POINTS LEFT , SO ITS C .. = )

AND I JUST CALLED JOHN HOWARD.. HE SAYS ITS C .. OTHERWISE THERE WOULDN'T BE GST

 

[runnable]

Yea just stop discussing and lets all be back when they release answers. (so I can laugh at y'all lol especially the Usyd econ major guy)

 

[Garygaz]

when do answers come out?

 

[runnable]

No idea. I want to know too.

 

[danz90]

I think past papers and comments frm marking centre are released on BOS site in january.

 

[Garygaz]

looks like this debate shall rage on till january then, hoorah!

 

[runnable]

Lol. Lets all stop it now. (until I am proven right.)

Will this sub-forum still be open in Jan? Cuz 07 threads are closed, not sure when did that happen.

 

[2162]

how can u say long term it will return to the original point of unemployment WHEN inflation will push eco growth down and thus employment

 

[FatJ]

Personally I put A. I think its a toss up, theres two forces, one involving currently unemployed people gaining employment, and another involving hidden unemployed people starting to look for jobs.
Initially I put C, but changed to A, under my belief that the unemployment rate can't really go below the natural rate of unemployment. It did say initially though, so it could be either.

However, there is a precedent for the board of studies accepting two answers for multiple choice. So as long as you didn't say that an increase in AD will push prices down, you should be right.

 

[runnable]

Unemployment will not decrease because say hospitals will not employ blacksmiths when they want doctors. Every person fit for a job already has one.

 

[johnyd7]

Sorry everyone, but its definetly C,

I asked two people who are 3rd year economics at Uni, and yeah its def C,

Also if your read your text book... it should say.

"Increasing Aggreagte Demand at the point of NRU, will lead to no PERMANENT reductions in unemployment"

Therefore, SHORT TERM, there will b lower unemployment

 

[BackCountrySnow]

quick, someone ask an eco teacher.

EDIT:

note: Uni students might not be that accurate. I mean, what we learn in the HSC is so narrow compared to how broad the field of economics is. I mean, according to monetarists, the only way to control inflation is through varying the money supply...

 

[daniellekho]

definately c

 

[runnable]

"Increasing Aggreagte Demand at the point of NRU, will lead to no PERMANENT reductions in unemployment"

Therefore, SHORT TERM, there will b lower unemployment

Did you add the second line yourself?


We should just stop talking about this. Just wait for the answers and C-guys will know that they're wrong.