A. lower import prices and an increase in net foreign debt.11 is A i think
i checked the textbook and appreciation says imports are less expensive and an improvement in australia's international competitiveness
answe is A????
It's D.A. lower import prices and an increase in net foreign debt.
First part is correct but you pay less on net forein debt, as it is cheaper to pay off the debt as AUS$ buys more of the currency the debt is owed to.
Yeh i was disproving A. Answer is b terms of trade deteriates, exports price rise = less demand, and higher amount of imports since imports are cheaper.It's D.
You disproved A.
If export prices rise the terms of trade will improve, not deteriorate. Hence it cannot be B.
The CAD may improve for C, but inflation (at least, imported inflation) cannot occur as an appreciation if anything would cause imported DEflation to occur.
That is correct for that question. Even though he is leaving and will not be formally considered as "unemployed", the size of the labour forced decreased by one, which means that there is now one less employed person with the same amount of unemployed, which would increase the rate of unemployment.isnt it employed ppl who r leaving?? cause it goes "if people retrenched from their jobs did not actively seek employment"
doesnt that mean employed r leaving?? so unemployment would increase, as the number of unemployed remains same, but labour force decreases. therefore as a percentage, the rate of unemployed would b higher.
For all of you that are wondering what question 12 was:madsam you are hektik mate. i agree 12 is (A) bro.
Did u forget to study or something?I'm wondering why 20 cant be D
actually i put this answer down because first if the $AUD were to appreciate imports would be cheaper everyone knows that but what prompted this increas ???? dont forgot australia has a big spending problem therefore net foreign debt may be neccessarily decrease servicing costs may decrease also dont forget not all net foriegn debts are in different currencies. well thats my opinion i might be totally wrongA. lower import prices and an increase in net foreign debt.
First part is correct but you pay less on net forein debt, as it is cheaper to pay off the debt as AUS$ buys more of the currency the debt is owed to.
Ok, even using that formula:For all of you that are wondering what question 12 was:
Year/Nominal GDP/CPI/HDI
1/6000/130/0.61
2/6800/150/0.76
This is how i worked it out, and what i believe to be right.
The Real GDP Formula is:
CPI previous year
--------------------- x GDP
CPI current year
Therefore:
130
----- x 6000 = 5200
150
This means that REAL GDP has decreased from 6000 to 5200, therefore the answer is C
Anyone disagree with this? Im interested to know because since people are saying its A it will haunt me.
No, you dont use a different base CPI for the two calculations. There is only one question. Is the base CPI 100 or 130. If its 100, then the answer is A, if its 130 then the answer is C.Ok, even using that formula:
Year 1: Nominal GDP = 6000 and CPI = 130
Real GDP = 100/130 x nominal
Real = 4615
Year 2: Nominal =6800 and CPI = 150
Real = 130/150 x 6800
= 5893
therefore Real GDP of year 1<Real GDP of year 2
ergo, Real GDP has increased, A
Ok, even using that formula:
Year 1: Nominal GDP = 6000 and CPI = 130
Real GDP = 100/130 x nominal
Real = 4615
Year 2: Nominal =6800 and CPI = 150
Real = 130/150 x 6800
= 5893
therefore Real GDP of year 1<Real GDP of year 2
ergo, Real GDP has increased, A
I dont understand why you are using the base year of 100 to figure out the Real GDP. as setonusyd said, since were asked to find out the real gdp from year 1 - 2, not before that. I've been using the method above all year to calculate similar questions and have always seemed to get them correct. I guess we wont really know until the answers get released, but when that time comes i honestly wont give a rats ass.No, you dont use a different base CPI for the two calculations. There is only one question. Is the base CPI 100 or 130. If its 100, then the answer is A, if its 130 then the answer is C.
Anyway, I'm confident that I got at least 17/20, not sure about 12, 19, 20 though.
I Put 12.C
19.A
20.D
so 19 is d?? please say yes hahaLabour force decreases but unemployed doesnt change cause the people retrenched are not actively seeking work and thus not in the unemployment figure. Hence unemployed stays same but labour force decreases
Unemployment rate= unemployed/labour force henceeeeeee unemployment rate would increase.
like 1/2 > 1/3
Thats what i rkn