Section I: Multiple Choice (2 Viewers)

[sherly1990]

answer is definitely a!!! coz the rest doesnt make any sense...
i reckon mc is ok... the short answer is a bit challenging though... i didnt expect the questions where you have to use other economy apart from aust.... i totally bulls**t in that one...
i feel sorry for the marker who has 2 suffer tru marking my paper....

 

[runnable]

Re: Multiple choice answers

Sorry for those who think 7=C. I'm dead set sure its A. Anyway lets not talk about this anymore and I've given my reasoning and book references. Lets be back here when the answers come out or something.

 

[Garygaz]

Re: Multiple choice answers

Sorry guys who think 7 is A, as i am pretty sure it is C. The key to this question is that it asks for the INITIAL impact, this can be derived from looking at the long run philips curve.

Go here http://en.wikipedia.org/wiki/Philips_curve and scroll down to "Nairu and inflationary expectations". As is shown, unemployment is at NAIRU, and an increase in aggregate demand moves us INITIALLY from point A to point B, which is a decrease in unemployment and an increase in inflation. Eventually due to inflationary expectations, it will move to point C, which is is STILL the NAIRU, but at higher inflation. Thus even in the long run, unemployment has not increased from the NAIRU at which it was initially.

Except for the fact that the long run phillips curve isn't taught at HSC level, the back of Dixon's book states that it is not a part of the syllabus. Check the Question 7 thread, I explained it there.

 

[harryd222]

this paper was so confusing

 

[shakky15]

when do the answers to the multiple choice come out?

 

[Q2C-ME]

when you dont care anymore....

 

[shakky15]

when you dont care anymore....

lol. well im sure if u get 89 you would. touch wood.

 

[karnage]

lol. well im sure if u get 89 you would. touch wood.

I'd rather not know lol, id be cut if i missed out by that much.

 

[SDM100]

wat was the answer for ques 12 multi choice??- how could a govt. finance a budget deficit while maintaining ex. stability??

 

[charliebeaver]

wat was the answer for ques 12 multi choice??- how could a govt. finance a budget deficit while maintaining ex. stability??

12 was d...pretty sure.

7 was the toughest. i got c and thas wat my teacher said. but im not sure bout a...

 

[jaja112]

Re: Multiple choice answers

I'm fairly certain these answers are all right:

1. A
2. B
3. D
4. B
5. A
6. D
7. C
8. C
9. C
10. A
11. A
12. D
13. C
14. A
15. C
16. D
17. A
18. B
19. D
20. B

what did you kids get?

I got everything cal got except the ones i just boldified (which i changed to the answer i put down).. pretty sure 7 is C from looking at the thread dedicated to Q7. Question 1 i'm not that sure about but developing countries do usually have low income inequality right? and Q19 i definitely got wrong!!!!!!! wtf was i thinking

 

[shakky15]

I'd rather not know lol, id be cut if i missed out by that much.

lol.

 

[lolcal]

Re: Multiple choice answers

I got everything cal got except the ones i just boldified (which i changed to the answer i put down).. pretty sure 7 is C from looking at the thread dedicated to Q7. Question 1 i'm not that sure about but developing countries do usually have low income inequality right? and Q19 i definitely got wrong!!!!!!! wtf was i thinking

nah jared, 1 is deffers D because A said "low levels of income inequality" and they typically have undeveloped industrial zones, hence it's d

and 7 is like half and half lol, it's a dumb question hey.

 

[Dimplez]

Re: Multiple choice answers

I either got 18/20 or 19/20...all depending on that stupid q7. I put A and I wouldn't change that...but I'm not confident with it at all.

 

[Matt Palmer]

12 was d...pretty sure.quote]

By borrowing funds from the private sector you will create the crowding out effect. Therefore privat firms will all have to obtain finance from foreign investors. This will have to be serviced in the net income component, worsening the CAD, and contributing to bad external stability. Raising taxes is the only way the government doesnt affect external stability, just pisses off its own people.

 

[runnable]

12 was d...pretty sure.quote]

By borrowing funds from the private sector you will create the crowding out effect. Therefore privat firms will all have to obtain finance from foreign investors. This will have to be serviced in the net income component, worsening the CAD, and contributing to bad external stability. Raising taxes is the only way the government doesnt affect external stability, just pisses off its own people.

Not true. Domestic private sector that can't pay the higher cost can just.. NOT BORROW TO INVEST AT ALL. Thus will not worsen external stability.

 

[Matt Palmer]

Not true. Domestic private sector that can't pay the higher cost can just.. NOT BORROW TO INVEST AT ALL. Thus will not worsen external stability.

WHAT!?! are you saying that the domestic sector just will say "that rate is too high, not going to expand". they r gonna try and expand theri business to gain more profits. that is economics 101 mate. making more money. if the rate is cheaper in, say, Japan they are gonna try and get their money from japan. and that will worsen the CAD.

 

[ronash]

7 is C and 12 is D.
lets just leave it there

 

[runnable]

WHAT!?! are you saying that the domestic sector just will say "that rate is too high, not going to expand". they r gonna try and expand theri business to gain more profits. that is economics 101 mate. making more money. if the rate is cheaper in, say, Japan they are gonna try and get their money from japan. and that will worsen the CAD.

I'm saying firms may choose to borrow or not. So it may or may not lead to worse external stability. To finance a deficit, the only choices in the questions were 1)Selling bonds to foreigners, 2) Borrowing from domestic private sector.

2) is obviously the choice.

 

[runnable]

7 is C and 12 is D.
lets just leave it there

7 = A. But lets not talk about this. Wait for the official answer.