Question 7 (2 Viewers)

[tau281290]

At least it gives me a peace of mind....=)

 

[midifile]

Omfg Reli? Just 1 Mrk???

Lol. Dont mock me

My point is no one can convince anyone else to change their minds

Honestly its like this:
"its A"
"no its C"
"no its A"
"no its C"

You are getting nowhere

 

[Terlob]

Lol. Dont mock me

My point is no one can convince anyone else to change their minds

Honestly its like this:
"its A"
"no its C"
"no its A"
"no its C"

You are getting nowhere

We're just discussing it. If you dont have anything to add then dont post.

 

[BackCountrySnow]

"its A"
"no its C"
"no its A"
"no its C"

wtf no, it's A.

 

[thebitw]

Theatrically both a and c can happen.
which one is more right

c

 

[poisonives]

Question...... if unemployment goes down, which group out of the structurally unemployed, frictionally, hard-core, seasonal etc... become employed again ?

 

[echmo91]

7 is C
read 360 -361 of dixon. clearly states it.

 

[BackCountrySnow]

Question...... if unemployment goes down, which group out of the structurally unemployed, frictionally, hard-core, seasonal etc... become employed again ?

umm... hardcore.

 

[runnable]

With Dixon's book.

Read up on Causes of Unemployment, Rising participation rates. Clearly states it.

 

[Garygaz]

From Page 360 of Dixon's book:

The natural rate theory says that there will always be some level of frictional, structural, seasonal, and hard-core unemployment, that cannot be addressed through demand-management or macroeconomic policies. If a government uses expansionary macroeconomic policies to lift demand and reduce unemployment, it will result in an increase in wage levels and inflation.

 

[duack]

well everyone seems to think its either a or c but i think its wateva ur heart wants it to be.

my heart wants it to be c
because thats wat i put.

so its c. =]

 

[BackCountrySnow]

well everyone seems to think its either a or c but i think its wateva ur heart wants it to be.

my heart wants it to be c
because thats wat i put.

so its c. =]

my heart says B.... omg should i?

 

[@who]

its A. how can unemployment decrease further if its at the natural rate?

 

[cccclaire]

I said C, althought the A arguement is valid.

I think what we can all agree on is that it was a stupid question.

 

[runnable]

It was actually quite obviously testing hidden unemployment and understanding that unemployment cannot go under the NAIRU via growth.

 

[dcb4usmcfr]

Hell, I begin to hate Tim Riley



apparently in his book he DID NOT clearly say hidden unemployed increasing unemployment rate.

Only when "if jobs are available", which means hidden unemployed become employed directly, instead of becoming normal unemployment

:burn: :burn: :burn: :burn: :burn: :burn: :burn:

 

[Garygaz]

Let me end this debate, once and for all.

The question states:

What would be the initial impact of an increase in aggregate demand when an economy is at its natural rate of employment?

From Tim Dixon's book:

The natural rate theory says that there will always be some level of frictional, structural, seasonal, and hard-core unemployment, that cannot be addressed through demand-management or macroeconomic policies. If a government uses expansionary macroeconomic policies to lift demand and reduce unemployment, it will result in an increase in wage levels and inflation. As workers become adjusted to the higher level of inflation, they will begin to demand higher wages, which if granted, will see unemployment return to it's natural level.

Hence, the initial impact would be an decrease in unemployment. Though unsustainable, it would still happen for a short period of time. Stop your whining.

I still can't remember what I put, I looked at it for so long and picked on of the two

 

[echmo91]

runnable, your argument is valid but since the answers referred to inflation AND unemployment, i believe the question was testing knowledge of the long run phillips curve.

 

[runnable]

It was asking, effect of increase in aggregate demand on an economy already at NAIRU.

Read up on Causes of Unemployment, Rise in Participation Rate.

I'm through talking about this. We'll see when the answers come out.

 

[Garygaz]

Runnable, so you think it is a) or c)? Because technically you can argue both.