AWrules said: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 you got 18. 7 is A and 12 is D. Read back in thread to find out why..AWrules said: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
echmo91 said: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%.
Sry 7 = aAWrules said: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.AWrules said: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?
so does the textbook example... =Srunnable said:Yep. But the question had the economy already at NAIRU.
Sry I dun have that textbook so I cant confirm but...echmo91 said:so does the textbook example... =S
fail. its a philips curverunnable said: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.
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.nicholas1212 said:fail. its a philips curve
L2economics
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 aboveAWrules said: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>?
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.nicholas1212 said: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
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.runnable said: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.
thank you, someone with half a brain,AWrules said: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??