Multiple choice Q (2 Viewers)

[girrawhat]

Here is the question. Can anyone tell me the answer and how they got it. I did the question wrong but I dont know how the given answer works. Could anyone pls explain. One week to the exam.

http://www4.boardofstudies.nsw.edu....wer=B&courseID=15110&testQuestionID=297723048

 

[deswa1]

Do you know about microeconomic reform? Basically when you deregulate markets, you improve efficiency, which improves productivity, which improves AS (shift to right) as you can produce more with the same amount of stuff

 

[girrawhat]

Ohhhh. THat makes sense. Forgot how labour market reform boosts aggregate supply. I better revise hardcore on labour markets. Btw, does anything relating to financial market boost aggregate supply?

 

[Bored_of_HSC]

Ohhhh. THat makes sense. Forgot how labour market reform boosts aggregate supply. I better revise hardcore on labour markets. Btw, does anything relating to financial market boost aggregate supply?

Deregulation > less restrictions to lend captial etc > more productivity/efficiency

(just one example)

 

[girrawhat]

So deregulation in general boosts aggregate supply?

 

[Bored_of_HSC]

So deregulation in general boosts aggregate supply?

Yep. Deregulation of ANYTHING in general boosts AS. (unless market faiilure fucks shit up)

 

[girrawhat]

Also, would u be able to help with this question. I dont quite get how we can judge inflation purely with the CPI
http://www4.boardofstudies.nsw.edu....wer=C&courseID=15110&testQuestionID=297727442

 

[Bored_of_HSC]

Also, would u be able to help with this question. I dont quite get how we can judge inflation purely with the CPI
http://www4.boardofstudies.nsw.edu....wer=C&courseID=15110&testQuestionID=297727442

I think it's meant to say "Terms of Trade index" as opposed to "import index" lol.

But firstly, the inflation rate has decreased (as cpi has only risen from 5 (135-130) as compared to 10 (130-120). So you know it's A or D.

But yeah.. i think the question's wrong (someone else help lol)

 

[girrawhat]

Is it something to do with how terms of trade has nothing to do with volume of export/ import but price?

 

[Bored_of_HSC]

Is it something to do with how terms of trade has nothing to do with volume of export/ import but price?

yup

 

[girrawhat]

Another one to do with exchange rates. Very confusing. I dont see the logic. Can anyone explain.

http://www4.boardofstudies.nsw.edu....wer=B&courseID=15110&testQuestionID=297727434

 

[girrawhat]

Why cant it be b or c?

 

[Bored_of_HSC]

Another one to do with exchange rates. Very confusing. I dont see the logic. Can anyone explain.

http://www4.boardofstudies.nsw.edu....wer=B&courseID=15110&testQuestionID=297727434

Increase in demand for foreign assets > australians want to buy overseas assets > they have to sell their AUD to buy these > increased supply

 

[Bored_of_HSC]

Why cant it be b or c?

B: Decreased demand for foreign imports by australians > australians buy less imports > less supply > shift in curve to left, not right

C: Decreased demand for aus assets by foreigners > decreased demand for aud > no impact on supply > no shift in supply curve whatsoever

 

[girrawhat]

What about decreased demand for Australian assets by foreigners > foreigners dont want australian assets > they sell their australian dollar back to their foreign currency?

Is there a flaw in my logic?

 

[girrawhat]

Oh so it doesnt impact supply. ok

 

[Bored_of_HSC]

Yeah, i love using these logic gates for eco multi choice. SIMPLIFIES so much.

 

[girrawhat]

THanks for your help

 

[Bored_of_HSC]

nws brah

 

[girrawhat]

Just another Q, http://www4.boardofstudies.nsw.edu....wer=A&courseID=15110&testQuestionID=297731542

Does investment expenditure count as funds consumed or saved. I thought if u spend money to invest, u r consuming the cash but at the same time, investment could be putting it in a bank and saving.