Section I: Multiple Choice (2 Viewers)

[moussahawa]

dude , for q2. if the RBA purchases govnt securities then they decrease thier liquidity not increase it.

dude, when the RBA buys back second hand CGS, when you buy something, you are giving the other party (banks) money, therefore increase liquidity, and because der is an increase in liquidity, the cash rate has to decrease, therefore indirectly interest rates decrease

 

[nataliaa.cc]

No need to get all uptight about it.
As I said was rushing, head's still a bit scrambled.
Thanks for the correction though (=

 

[@who]

dude, when the RBA buys back second hand CGS, when you buy something, you are giving the other party (banks) money, therefore increase liquidity, and because der is an increase in liquidity, the cash rate has to decrease, therefore indirectly interest rates decrease

do u know wat liquidity means? its the ability to repay debt in the short term, what your saying is in direct contrast to the definition.

 

[missashy]

wdf, question 2 is B) An increase in liquidity and a decrease in interest rates
because when the RBA buys govt securities more money is injected into the borrowers fund which mean the economy has an increase in liquidity and a decrease in interest rates - noobs == what was the easiest one there

 

[runnable]

Question 1 was definitely D).

For all that argue otherwise, the question said "BEST characterizes".

There's a lot more developing economies living off agriculture than oil, I'll give you that much.


And Question 7 was C).

The LRPC shows that when AD pushes for tightness in the labour market beyond the NAIRU, there will be a short-term decrease in unemployment followed by an increase in inflation, as he economy "zig-zags" back to its natural rate albeit at higher interest (degree of stagflation). As such, the only way to further decrease u/e without increasing inflation is through increasing AS rather than AD.

Keyword was "initially".

Still, I can't believe I got that fucking gini question wrong... misread it for increase in equality, and hence put welfare :burn:

You're right, the key word is INITIALLY. It will only be a short while for hidden unemployment to come out and become unemployed, its a short term thing thats happening.

 

[missashy]

wdf uve got to be joking right ? liquidity means how much CASH how much MONEY you have on you, if i have 100$ and you have $50 - i am therefore more liquid than you, dumb shit

 

[@who]

wdf uve got to be joking right ? liquidity means how much CASH how much MONEY you have on you, if i have 100$ and you have $50 - i am therefore more liquid than you, dumb shit

fuck off tart
im betting i killed your marks overall. fuck off now

 

[lildoro]

I got the same answers as most people except for one stupid mistake ><; I didn't mark the answers in my question book so I'm really paranoid that I might've coloured the wrong circle in when I had the right answer in mind...

Ahhh. It's over.

Yeah i think i had all the MC right the same that most ppl are getting except for Q19> everyone had C and someone explain to me how that works that question i was totally confussed that was the only part of the exam i found hard.
go economics best HSC subject ever YYEEE!!

Uhh I got C for Question 19 as well, simply because it's aggregate supply that's decreased and everything else was stuff that affects aggregate demand rather than aggregate supply.

Correct me if I'm wrong ^_^;

 

[@who]

what were the options for question 17 ?

 

[liam9519]

I got 19/20. I got 12 wrong, because I figured by borrowing funds from the domestic private sector, the crowding out effect causes them to borrow from overseas, hence worsening ext. stab. However I misinterpreted B as the opposite and thus put that.

Not so well in the short answer unfortunately, but i think im looking at 80-85%+ raw

 

[@who]

someone post q17 up.

 

[nataliaa.cc]

Which of the following would increase Australia's Gini coefficient?
a) an increase in the goods and services tax (gst) rate
b) an increase in the top marginal tax rate
c) an increase in welfare payments
d) an increase in public housing

 

[@who]

Which of the following would increase Australia's Gini coefficient?
a) an increase in the goods and services tax (gst) rate
b) an increase in the top marginal tax rate
c) an increase in welfare payments
d) an increase in public housing

thankyou for that.

im now certain that i put a.
but how the hell do u find that lorenz curve question?

 

[whathe?]

that was a), GST is regressive

 

[Geohood]

MC was the hardest part of the exam lol

 

[risole91]

MC was the hardest part of the exam lol

definitly.

 

[purplecupcake]

Re: Multiple choice answers

12D would crowding out effect though wouldn't it?

This multiple choice test was the most confusing I've ever done.

i agree with you here - i put b for this question because of that !

 

[runnable]

Re: Multiple choice answers

Crowding out =/= Worse external stability.

It will only be so if it leads to borrowing from overseas, which may or may not happen.

 

[@who]

yea im thinking on the same line. i was actually hoping to go much better in multy choice than i did in the trial. belive it or not, i lost my marks in multy choice practically.

in the trial (cssa) . i got 39/40 for s.a , 36/40 for extended responses and 11/20 for multy choice.

i guess we will have to see the results. oh well its over.

 

[frieda]

Re: Multiple choice answers

Sorry guys who think 7 is A, as i am pretty sure it is C. The key to this question is that it asks for the INITIAL impact, this can be derived from looking at the long run philips curve.

Go here http://en.wikipedia.org/wiki/Philips_curve and scroll down to "Nairu and inflationary expectations". As is shown, unemployment is at NAIRU, and an increase in aggregate demand moves us INITIALLY from point A to point B, which is a decrease in unemployment and an increase in inflation. Eventually due to inflationary expectations, it will move to point C, which is is STILL the NAIRU, but at higher inflation. Thus even in the long run, unemployment has not increased from the NAIRU at which it was initially.