Multiple choice Q (1 Viewer)

[girrawhat]

And wth, how does immigration shift the curve to the right. Multiple choice in eco is killing me. http://www4.boardofstudies.nsw.edu....wer=A&courseID=15110&testQuestionID=297731547

 

[Bored_of_HSC]

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.

Good question lol, i'm not 100% sure on how the definition works. But i don't think you'd need to know either for the hsc lol.

But isn't that irrelevant to the question? It's just asking you to count the mpc.

And wth, how does immigration shift the curve to the right. Multiple choice in eco is killing me. http://www4.boardofstudies.nsw.edu....wer=A&courseID=15110&testQuestionID=297731547

Increased in skilled immigration > less skill shortages > greater output.

But from my understanding, increasing "immigration" itself is too generic/vague :/ (bad question imo)

 

[Bored_of_HSC]

And relax bro, you jsut aren't thinking correctly. Multi-choice isn't all about knowledge. It's thinking logically.

 

[girrawhat]

Good question lol, i'm not 100% sure on how the definition works. But i don't think you'd need to know either for the hsc lol.

But isn't that irrelevant to the question? It's just asking you to count the mpc.

But u need to know which value is which for MPC. I assumed Investment was consumption to get 0.4 but answer is 0.6 therefore that means that I must have calculated MPS.

 

[girrawhat]

And relax bro, you jsut aren't thinking correctly. Multi-choice isn't all about knowledge. It's thinking logically.

Yeh, thats true. Hopefully when I walk into the exam, my brain is switched on.

 

[Bored_of_HSC]

But u need to know which value is which for MPC. I assumed Investment was consumption to get 0.4 but answer is 0.6 therefore that means that I must have calculated MPS.

Nah, i think it's just asking you to calculate the mpc after finding the simple multiplier. Remember, investment itself is always an injection.

Therefore you just use find k (2.5), which is equal to 1/mps

 

[girrawhat]

Is there a formula for calculating inflation with just the CPI? If there is, I dont think my teacher has taught it. http://www4.boardofstudies.nsw.edu....wer=C&courseID=15110&testQuestionID=297737755. I get the unemployment but I cant get the inflation part.

 

[JasonG123]

Is there a formula for calculating inflation with just the CPI? If there is, I dont think my teacher has taught it. http://www4.boardofstudies.nsw.edu....wer=C&courseID=15110&testQuestionID=297737755. I get the unemployment but I cant get the inflation part.

Inflation = (CPI current year - CPI previous year)/(CPI previous year).

Don't make the mistake that an increase in CPI means an increase in inflation. It's all relative to the previous year.

 

[RishBonjour]

And relax bro, you just aren't thinking correctly. Multi-choice isn't all about knowledge. It's thinking logically.

this. read question carefully and the answers will come to you.

 

[MasonT]

You have logic in what you say ... but you need to READ THE GRAPH!!

Remember: Finance in general mainly refers to the exchange rate (even in external stability), so when looking at a graph, the terms usually used would be 'exchange rate in $US' and 'quantity'

HOWEVER: On this graph there is 'Price Level' and 'Real GDP' ... This indicates TWO things:
1) Inflation (Price Stability)
2) Economic Growth

Because this is dealing with Aggregate Supply (Yes the supply shift moves, not demand) ... this indicates that we are looking at Microeconomic Reform (Supply Side Economics - Remember!!)

Now heres the easy bit ... you see option B deals with monetary policy, whereas option C and D deal with fiscal policy. Both policies are Macroeconomic Reform and are Aggregate Demand Driven!!!!

So you tell me, what option from A, B, C, D is left? (Oh yes, and don't forget the Philips Curve with the conflict of full employment and price stability)

 

[girrawhat]

You have logic in what you say ... but you need to READ THE GRAPH!!

Remember: Finance in general mainly refers to the exchange rate (even in external stability), so when looking at a graph, the terms usually used would be 'exchange rate in $US' and 'quantity'

HOWEVER: On this graph there is 'Price Level' and 'Real GDP' ... This indicates TWO things:
1) Inflation (Price Stability)
2) Economic Growth

Because this is dealing with Aggregate Supply (Yes the supply shift moves, not demand) ... this indicates that we are looking at Microeconomic Reform (Supply Side Economics - Remember!!)

Now heres the easy bit ... you see option B deals with monetary policy, whereas option C and D deal with fiscal policy. Both policies are Macroeconomic Reform and are Aggregate Demand Driven!!!!

So you tell me, what option from A, B, C, D is left? (Oh yes, and don't forget the Philips Curve with the conflict of full employment and price stability)

Very good answer. Explained in depth.