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i think D was wrong for question 12... the crowding effect is so obvious but who knows... i hope im right thojoel p said:Some pretty dodge multiple choice questions i thought. Most were easy but there were some really weird ones.
question 7 on the impact of an increase in aggregate demand when the economy is at the natural rate - I would say they we're all wrong, when employment is at the natural rate it means cyclical employment is zero and changes in aggregate demand only effect cyclical employment - hence no change in employment.
question 12, again they all had some elements of incorrectness. While i think the answer they wanted was D if you borrow from the private sector it forces domestic firms to borrow from overseas, worsening external stability.
Q 20 also pretty hard.
Yep 14 was A, 15 was Cseano77 said:I got all the same except 14 and 15. I thought 14 was A (producers and consumers dont pay the cost of the negative externality.) And I thought 15 was C (its a deterioration of Terms of trade so imports (commodities) rise quicker than exports (manufacturers.)