Section II - Short Answer (2 Viewers)

[Rafy]

Share your thoughts on the short answer section (Questions 21-24.)

 

[Scrub Ya Flaps]

HAHA first reply for all posts.

I thought they were pretty easy, i tended to write alot more than i should have and explaining things that didnt need it and WERE actually in the next question. for example i was talking about the EU and the farming subsidies and the next question was very similar and everything in that answer i needed to rewrite. haha not a good sign, but oh well (haha im in an 'oh well mood)

 

[goby]

What's an advantage/benefit for inflation?

I was stumped on that question....

other than that I think this section was alright, but who knows... I may have dropped marks in a few of the longer questions.

 

[Scrub Ya Flaps]

What's an advantage/benefit for inflation?

I was stumped on that question....

other than that I think this section was alright, but who knows... I may have dropped marks in a few of the longer questions.

Me to for both things haha.

i put the bad thing is that obviously general prices go up and PP of money is decreased which tends to create more savings and less Consumption so it could cause unemployment (something like that i dont care haha)

and the advantages i looked at last night or this morning and totally forgot..i made something up and by the end i remebered what it was and wrote it in, hopefully the marker reads past the lines and into my itty bitty writing down the bottom hahaha.

BUT I THINK, no wait! i do remember, it was total crap

I said that with inflation there is usually (lol made it up) economic growth so people spend more and investors seek the high interest rates in australia... soemthing like that haha

 

[goby]

Me to for both things haha.

i put the bad thing is that obviously general prices go up and PP of money is decreased which tends to create more savings and less Consumption so it could cause unemployment (something like that i dont care haha)

and the advantages i looked at last night or this morning and totally forgot..i made something up and by the end i remebered what it was and wrote it in, hopefully the marker reads past the lines and into my itty bitty writing down the bottom hahaha.

BUT I THINK, no wait! i do remember, it was total crap

I said that with inflation there is usually (lol made it up) economic growth so people spend more and investors seek the high interest rates in australia... soemthing like that haha

Haha, I seeeeeee.
Thanks for the answer.

Best of luck in your next exam (senior science was it?)!

 

[Scrub Ya Flaps]

Haha, I seeeeeee.
Thanks for the answer.

Best of luck in your next exam (senior science was it?)!

Yeah, hopefully i got the right answer at the end, it took awhile of random jibber to work out that inflation normally as high interest rates and so quality place for investment.

 

[rambam92]

would u get a mark for saying that high inflation results in lower unemployment as illustrated in the phillips curve

 

[Scrub Ya Flaps]

would u get a mark for saying that high inflation results in lower unemployment as illustrated in the phillips curve

I'd say so since thats a negative, but i thought the phillips curve represented what would happen if government fiscal policy was used to reduce unemployment, or is that JUST for the long-run one. I put that in my essay on Macro-economics but i also said that Friedman and Phelps argued the best way ot reduce unemployment was to decrease inflation and increase labor flexibility. LOL i am good at quality bullshitting so yeah, i'd say u MIGHT get a mark. someone should be able to helpy ou further though

EDITED

 

[Evertonian]

For the advantage disadvantage question in regards to inflation i just put it erodes international competitiveness and it is good for the terms of trade...lol

 

[akim93]

advantage is that increase in interest rates leads to high inflation which attracts foreign investment from sepeculators therefore it creates employment oppourtunities+technology

and disadvantage is that low inflation=depreciation where the imports are expensive blah blah

am i right?

 

[Evertonian]

advantage is that increase in interest rates leads to high inflation which attracts foreign investment from sepeculators therefore it creates employment oppourtunities+technology

and disadvantage is that low inflation=depreciation where the imports are expensive blah blah

am i right?

The disadvantage your right, but i dunno about the advantage. That seems more like an advantage of an increase in interest rates

 

[AnandDNA]

advantage is that increase in interest rates leads to high inflation which attracts foreign investment from sepeculators therefore it creates employment oppourtunities+technology

and disadvantage is that low inflation=depreciation where the imports are expensive blah blah

am i right?

I dont think you can say it was due to rise in interest rates.. I just said that borrowers would benefit as they are paying less interest on the loans that what they are really worth. Yeh my explanation is just as bad in the exam as it is here

 

[eddiebra]

For the advantage of inflation I had absolutely no idea..

I talking some random $hit about 2-3% inflation is acceptable as an economy would rather inflation as apposed to deflation as evidenced in the Japanese economy. Thats all I could think of really, doubt it will pull marks.

 

[eddiebra]

The advantages of inflation:

1. Deflation is very harmful. For example, the Japanese economy has suffered lower growth because of deflation. When prices are falling people are reluctant to spend money because they are concerned that prices will be cheaper in the future, therefore, they keep delaying purchases.

 

[maddyure]

For the advantage I said that inflation would lead to a decrease in the real value of debt and the real interest rates and therefore high inflation may lead to a decrease in the level of debt.

That was the best I could do after staring at it for aggggeeesss.

 

[eddiebra]

Ive spoken to a few people.

The advantages of inflation:

1. Deflation is very harmful. For example, the Japanese economy has suffered lower growth because of deflation. When prices are falling people are reluctant to spend money because they are concerned that prices will be cheaper in the future, therefore, they keep delaying purchases. There are many more cost of deflation in this essay on


That is the right answer, as the monetary policy targets inflation at 2-3% over the course of an economic cycle. Because little or no inflation can result in a deflationary cycle (i think its called). e.g. whats happening to the Japanese economy.

 

[DannyT]

increased economic activity perhaps? if there are inflationary expectations, consumers and businesses would spend more in the short term as they expect their purchasing power to decline in the near future. this would increase economic growth in the short term if the economy wasn't near or at its supply capacity.

 

[Rocket Man]

is public toilets a public good?? my friend and i both did this who else did? reps to you!!

 

[niloony]

would u get a mark for saying that high inflation results in lower unemployment as illustrated in the phillips curve

I don't think this is correct as lowering unemployment causes inflation but raising inflation does not lower unemployment. Only if your stimulating demand does a higher rate of inflation mean your lowering unemployment. You have causation mixed up. In my trial i think a few people tried to get away with that but got zero for it.

But hey its the HSC, the markers might give up and just give half the state a mark for at least knowing a graph

 

[vpa2891]

I said inflation leads to an increase in price of exports and domestic assets, therefore it causes demand for AUD in short term, leading to an appreciation in short term. This increases purchasing power of domestic consumers.
Am i right?