Section I: Multiple Choice (2 Viewers)

[jono1887]

Sry 7 = a

because

For 7, unemployment will increase because hidden unemployment will decrease due to better economic conditions, hence increasing unemployment in the short run.

No, 7 is C...hidden employment reducing is irrelevant because it is HIDDEN, hence not calculated by the ABS!! This is from Dixon Text book - Once NAIRU is reached...any further stimulus to aggregate demand will not lead to permanent reductions in unemployment....leading to higher inflation...

Why would he say non-permanent reduction?? because the immediate effect of increased AD at NAIRU causes a short term unsustainable decrease in unemployment that will eventually increase again later! The question asked for the IMMEDIATE EFFECT and not delayed....so hence forth, it is C

 

[Q2C-ME]

low levels of income inequality because of the following ;

• capitalist structure in high income ecnomoys
• lack of business potenital and limited TNCs (who actually are not citizens therefore their is no effin counting of them in statistics)
• everybody is equaly shit...and basically if you did a gini...95% of the population would be poor...and even the little bit that would b rich WOULD NOT HAVE A BIG GAP...like say america wen people like donald trump vs people like joe blu

its A....and john bulmer confirms this

 

[christiina.h]

Sry I think you didnt get all right. Cuz 7=A. No mention of inflation whatsoever in the question, so not sure why you brought in the philips curve.

natural rate of unemployment implies the relationship between unemployment and inflation, and thus phillips curve............

 

[runnable]

Runnable: i don't see how it insinuates that

macquarie guide page 100:

"if demand management policies, such as expansionary fiscal policy or loose monetary policy (wich increase aggregate demand), reduce unemployment below the NRU, the lower unemployment is accompanied by inflation"

So 7) C Yes??

The question does not involve expansionary fiscal/monetary. Its pure economic growth.

 

[AWrules]

haha thanks nicolas

so yay i think i got 20/20

 

[Q2C-ME]

1) A

and its been proven...ask your teachers if they have half a brain

agricultural as if!!

 

[runnable]

How bout this definition of NAIRU.

Rate where unemployment cannot be decreased by increase in aggregate demand.

 

[echmo91]

low levels of income inequality because of the following ;

• capitalist structure in high income ecnomoys
• lack of business potenital and limited TNCs (who actually are not citizens therefore their is no effin counting of them in statistics)
• everybody is equaly shit...and basically if you did a gini...95% of the population would be poor...and even the little bit that would b rich WOULD NOT HAVE A BIG GAP...like say america wen people like donald trump vs people like joe blu

its A....and john bulmer confirms this

dixon says:
developed economies experience low income levels, high levels of inequality and generally have agriculture based economies...

 

[runnable]

Q1 = D.

Not sure what is this nonsense about developing nations having low inequality.

 

[Zouzor]

I agree with 7 = C.

Unemployment can be reduced past the nairu. also, an price increase is inflation.

 

[seano77]

Hmmm...i think you guys are worying about the wrong thing....i got all the same answers as you except one...which was question 1

my teacher who is hsc marker and helps that dixon fella confirmed that 1 is A
think about it man...their are so many developing economys in the middle east for you to come out and say that their all dependent on agricutlre is stuipd....because thats sooo niche....commodities then yes

i honestly reckon the answer is A...and it will shock everybody...thats what he said...so in essence i am the one with 20/20...muahahahahah

Lol developing countries have the worst inequality out of all countries though? And the Q asked for a characteristic, not for a feature of all developing countries.

Quoting Leading Edge: "Once the natural rate is reached, any further cuts in wages or stimulus to AD will not lead to reductions in the rate of UE. Therefore making the economy grow through AD macro policies is futile once the natural rate of UE is reached. It will only lead to higher inflation....but it can be reduced through education and training policies.

 

[AWrules]

runnable, can u quote a source?

 

[seano77]

Q1 = D.

Not sure what is this nonsense about developing nations having low inequality.

Lol. Agree completely.

 

[mitellic]

Hmmm...i think you guys are worying about the wrong thing....i got all the same answers as you except one...which was question 1

my teacher who is hsc marker and helps that dixon fella confirmed that 1 is A
think about it man...their are so many developing economys in the middle east for you to come out and say that their all dependent on agricutlre is stuipd....because thats sooo niche....commodities then yes

that may be so... but developing countries have a LARGE proportion of income going to a small percentage of the population...

ALSO... I'm entirely sure that unemployment CAN go below the natural rate of employment, despite the fact that it would cause increased inflation (NAIRU). A FINE example of this is the our economy about a month ago. If you read all the RBA, ANZ, et al., articles on the matter, they all seem to say that unemployment has/d gone BEYOND the natural rate.


I'm not so sure about question eleven though!
I put A) like everyone else here, but my friends put B) and i think they're right, because isn't it the difference between the line of equality and the lorenz curve that tells you the the proportion?... While i'm sure the distance between the bottom of the graph and the lorenz curve is probably equal to 15% (which is what i put, because i wasn't thinking). The distance between the line of equality and the lorenz curve looks more like 35% than 15%.


blah

 

[jono1887]

low levels of income inequality because of the following ;

• capitalist structure in high income ecnomoys
• lack of business potenital and limited TNCs (who actually are not citizens therefore their is no effin counting of them in statistics)
• everybody is equaly shit...and basically if you did a gini...95% of the population would be poor...and even the little bit that would b rich WOULD NOT HAVE A BIG GAP...like say america wen people like donald trump vs people like joe blu

its A....and john bulmer confirms this

Your obviously wrong...in the Dixon Book Page 49

Common characteristics of developing economies include:
- high levels of income inequality within their economies
- dependence on agricultural production for income, employment and trade opportunities

They're the 1st 2 points on developing economies!! so clearly answer for 1 is D!!!

 

[runnable]

runnable, can u quote a source?

Yep. Tim Dixon's book (i just realised its him)

Pg 174 middle of page, Read up on rising participation rates

then

pg 171, on NAIRU.

 

[echmo91]

Lol developing countries have the worst inequality out of all countries though? And the Q asked for a characteristic, not for a feature of all developing countries.

Quoting Leading Edge: "Once the natural rate is reached, any further cuts in wages or stimulus to AD will not lead to reductions in the rate of UE. Therefore making the economy grow through AD macro policies is futile once the natural rate of UE is reached. It will only lead to higher inflation....but it can be reduced through education and training policies.

misquote. it says will not lead to PERMANENT reductions =)

 

[AWrules]

runnable why u so belligerent?

where did u get that definition from?

 

[lolcal]

runnable, can u quote a source?

common sense

 

[RohanZ]

low levels of income inequality because of the following ;

• capitalist structure in high income ecnomoys
• lack of business potenital and limited TNCs (who actually are not citizens therefore their is no effin counting of them in statistics)
• everybody is equaly shit...and basically if you did a gini...95% of the population would be poor...and even the little bit that would b rich WOULD NOT HAVE A BIG GAP...like say america wen people like donald trump vs people like joe blu

its A....and john bulmer confirms this

Most developing nations do not have the capacity to be producing manufactured goods, most of their trade is based on agricultural exports.
Also, they don't have the level of technology and skill base to produce any manufactured products, including ETMs and STMs.