Question 7 (3 Viewers)

[runnable]

Will we ever get the answer?

Yea just like we can now see 07's MCQ answers on official BOS site. It may take some time. Not sure when it comes out.

 

[jaja112]

I'm just glad i put down one of the potential answers cos i'd be pissed if i had down B or D. By the way the answer is definitely C

 

[runnable]

I'm just glad i put down one of the potential answers cos i'd be pissed if i had down B or D. By the way the answer is definitely C

Definitely? Wow ok.

 

[ronash]

Definitely? Wow ok.

haha runnable just get over it

 

[runnable]

haha runnable just get over it

Lol I've had enough justification. I'm just gonna wait for the answers now. Its not as if we can convince each other now. But ppl do come back when the answers come out. So i can pwn y'all. (or the other way around).

 

[abbeyroad]

lol wut?
exam's over and you're still discussing it?

 

[runnable]

lol wut?
exam's over and you're still discussing it?

Yep. Not much point discussing the exam questions BEFORE the exams.

 

[lionking1191]

Read up on this. If you use this.


Tim Dixon's book (i just realised its him)

Pg 174 middle of page, Read up on rising participation rates

then

pg 171, on NAIRU.

key word: initial impact

Yep. Not much point discussing the exam questions BEFORE the exams.

snap.

 

[runnable]

key word: initial impact

You got it. The rise in unemployment is a very initial impact because they only enter the workforce, increasing participation rates and increases unemployment rates for a short while.

Still really... Stop.

 

[Garygaz]

key word: initial impact

snap.

Eh, i shouldn't be doing this i've got ext 1 tomorrow but anywhooz.

At NAIRU, there is still frictional, seasonal, structural, and hardcore unemployment, as well as hidden.

When there is eco growth:

Frictional unemployed don't get employed quicker as it is addressed by better employment agencies.

Seasonal unemployment doesn't reduce for obvious reasons.

Structural unemployed don't get employed as they have the wrong skills, you can't get someone who was a car-manufacturer to work in say finance.

Hardcore... well yea, not getting a job from eco growth.

So as there is growth, initially the hidden unemployed, who might very well have the skills necessary to fill these new jobs, enter the workforce, initially driving up unemployment.

 

[charliebeaver]

Guess you just lost your soul.

Because we only learn the NAIRU and the one golden rule of NAIRU is that it cannot be reduced through growth.

the question doesnt ask for impact on NAIRU only...it says unemployment will decrease/increase. NOT NAIRU

 

[Garygaz]

the question doesnt ask for impact on NAIRU only...it says unemployment will decrease/increase. NOT NAIRU

Hence read my post right above yours.

 

[Garygaz]

Asked someone with a PHD in economics. Told me it was a ridiculous question and that you could argue both answers. Meh.

 

[echmo91]

Asked someone with a PHD in economics. Told me it was a ridiculous question and that you could argue both answers. Meh.

agreed. it will be interesting to see which one the bos accepts . .
does anyone know if there has been a question like this before? with two possible answers?

 

[runnable]

agreed. it will be interesting to see which one the bos accepts . .
does anyone know if there has been a question like this before? with two possible answers?

Yep it happens.

 

[BackCountrySnow]

Asked someone with a PHD in economics. Told me it was a ridiculous question and that you could argue both answers. Meh.

I asked Jeff Sachs. He told me he was too busy fixing world poverty or some shit.

 

[BackCountrySnow]

the beauty of economics: ask two economists a question and you'll get two totally different answers.

 

[domf22]

The answer is C. whoever put A or anything else is wrong. because it states INTIAL impact... hidden unemployment wouldn't come out initially bcos it will take one or two quarters of strong positive economic growth before they realised and decide to look for work. therefore in the short run it will have a downward impact on employment and increase prices.

 

[runnable]

The answer is C. whoever put A or anything else is wrong. because it states INTIAL impact... hidden unemployment wouldn't come out initially bcos it will take one or two quarters of strong positive economic growth before they realised and decide to look for work. therefore in the short run it will have a downward impact on employment and increase prices.

Just wait for the answer. People would recognise a rise in aggregate demand pretty quickly.

You can't argue that hidden unemployment is slower than firms employing structurally unable, hard core and seasonal folks.

 

[danz90]

lol they might accept both answers