econ q (1 Viewer)

[choco]

for the tute questions i was wondering if you guys could help me out.

for the first one it says " while saving and investment are always equal they are not always in equilibrium" explain

so is it jus the income-expenditure model that we use to explain that if one variable changes then its disequilibrium and that a new equilibrium is found by only changing one quantity? or am i on the wrong track?

 

[-=«MÄLÅÇhïtÊ»=-]

i fink its got sumfin to do with unplanned investment if dats wat ur talking about
*shrugs*

 

[Orange Juice]

yeh this weeks tute q's are alot harder than last weeks...

 

[Grizzly]

Some problems i had with Workbook Part3

In the Y-E model, isnt this so ?
"If aggregate expenditure (Y^D ?) is equal to aggreage supply, then unplanned inventory investment is zero because the goods market is in equilibrium" ?
The book says thats wrong. (A. "None of the above")

"...If aggregate expenditure is greater than aggregate demand, then unplanned inventory decreases which signals to firms to increase production"
If expenditure is greater tha demand, that means inventories fall, unplanned by the firms, and therfore they start to produce more?
No ?
Answers say thats wrong as well. (A. Unplaned inventory increases, which are signals to firm to reduce production)

 

[*hopeful*]

i hate econ, its bloody confusn
i think im goin 2 fail

 

[flamin']

I thought those answers in the back were wrong too. But I thought a bit more about them.

1. Prices are exogenous - the model can't determine whether prices change or not. We're just given them. If aggregate expenditure = aggregate supply we are in equilibrium but we can't say anything about prices.

2.
Aggregate expenditure > Aggregate demand
(actual) C + (actual) I > (planned) C + (planned) I

But actual = planned for consumption

So this reduces too:
(actual) I > (planned) I
which means that (unplanned) I > 0

So inventories increase so we reduce production.

Hope all that makes sense.

 

[flamin']

Best to ask tutors about this sort of stuff. Remeber this is Bored of Studies =P and it'd be sucky if we lead you in the wrong direction.

 

[golfstick]

econ110 is the shittest subject ever

 

[~ForAGoodCause~]

agreed

 

[*hopeful*]

double agreed

 

[Grizzly]

Originally posted by flamin'
I thought those answers in the back were wrong too. But I thought a bit more about them.

1. Prices are exogenous - the model can't determine whether prices change or not. We're just given them. If aggregate expenditure = aggregate supply we are in equilibrium but we can't say anything about prices.

2.
Aggregate expenditure > Aggregate demand
(actual) C + (actual) I > (planned) C + (planned) I

But actual = planned for consumption

So this reduces too:
(actual) I > (planned) I
which means that (unplanned) I > 0

So inventories increase so we reduce production.

Hope all that makes sense.

Excellent stuff flamin', i see now
Yeah good point flamin' - Ill ask tutor about #1.

 

[choco]

is it just me or does everyone feel sleepy during econ lectures! i hate going but i feel i might just miss out on something.
.

 

[~ForAGoodCause~]

yea soo true ...

i tune out within the first 10 minutes. The only reason i go is that il feel guilty if i dont... and i make myself believe that this counts towards studyin, even though i dont learn anything.

 

[ND]

100% of my macro knowledge comes from the lectures; i've read up to like chapter 6 in the book, and i don't plan on reading any more.

 

[toisthbe]

yup, that textbook is full of so much shit..its not funny.

 

[Grizzly]

Sif,
How are you supposed to answer tute questions and the workbook if you dont read the textbook ?
Hells, i understand the models in the book better than the 1minute scratch that craig/wylie do.

 

[flamin']

ND is actuary =P he can handle himself lolz

 

[-=«MÄLÅÇhïtÊ»=-]

with that being said, u gotta buy 2nd hand txt books off actuaries coz they're mint...

oh and ND, u mind if me and isaac bring our pool partners down on monday arvo to practice? he's gonna train them (and me). But we might need sum1 who lives at rmc there.

 

[Grizzly]

What size is the pool table ?
Full scale ? 3/4 ?

 

[ND]

Originally posted by Grizzly
Sif,
How are you supposed to answer tute questions and the workbook if you dont read the textbook ?
Hells, i understand the models in the book better than the 1minute scratch that craig/wylie do.

I'm not sure if it means anything, but i still got 20/20 for my quizzes, and had no probs doing any of the tute questions (well i haven't looked at this week's, but last week's weren't hard).

ND is actuary =P he can handle himself lolz

with that being said, u gotta buy 2nd hand txt books off actuaries coz they're mint...

Heheh.

oh and ND, u mind if me and isaac bring our pool partners down on monday arvo to practice? he's gonna train them (and me). But we might need sum1 who lives at rmc there.

Yeh that's cool, i'll be around on monday arvo, but if you're with isaac i don't think they'll mind anyway.