Economics: Discussion, Questions & Potential Solutions

[Chelsea f.c.]

The supply side of the economy is production more workers equals more production... also say more people more demand for interaction

[DoctorTwo]

Anybody remember what the wage growth question was?

I forgot what I put for 14 but I remember spending very little time on it which makes me think I misread it. I honestly hate multiple choice 

[Vri123]

Do you guys think vcaa will be lenient with the rate of inflation. I used 2.1% but it was apparently updated yesterday to 1.9%. Surely VCAA wont punish people who used 2.1%

[DoctorTwo]

Do you guys think vcaa will be lenient with the rate of inflation. I used 2.1% but it was apparently updated yesterday to 1.9%. Surely VCAA wont punish people who used 2.1%

Oh dang I used 2.1% as well. I'm sure they'll look past it though.

[bgladman]

What factor effecting the movement of the CAD from 2017 to 2018 did everyone use?

[ajs13]

What factor effecting the movement of the CAD from 2017 to 2018 did everyone use?

I used the decline in the TOT, don't know if that works or not

[snip]

I think I used growth in employment but it was the last question I did so definitely wasn’t my most confident response.

[bgladman]

I found the Current Account balance graph to be pretty annoying because the 2017 to 18 period was for 1 outdated and only took up less than one seventh of the graph... I just talked about commodity prices and how the CAD worsened when they (iron and coal) dipped in late Dec and early 2018

[DoctorTwo]

I used the decline in the TOT, don't know if that works or not

I used the improvement in the TOT to explain the fall in the current account balance and decline in the TOT to explain the rise in current account balance, but I just realised that this is wrong isn't it? I think I got the current account balance and deficit confused.

[bgladman]

For the AD/chosen goal tax policy question (2nd last Q) and the last question (a certain area with effect on AS and a goal of your choice) what did everyone choose?

[oJL8A99A]

For the AD/chosen goal tax policy question (2nd last Q) and the last question (a certain area with effect on AS and a goal of your choice) what did everyone choose?

Tightening welfare eligibility by increasing the pension age from 65 to 67 over 2018-2023 --> Increase labour participation causing AS to rise.

[bgladman]

What did you all discuss with the trade liberalisation question? 

[forbiddensoulxx]

What did you all discuss with the trade liberalisation question? 

Since it only said one effect, I talked about the short term effect of how it reduces our IC, and lowers NMLS since unemployment is higher.

[Caleb Campion]

I used the improvement in the TOT to explain the fall in the current account balance and decline in the TOT to explain the rise in current account balance, but I just realised that this is wrong isn't it? I think I got the current account balance and deficit confused.

Yes it's wrong. An improvement in the TOT would mean the prices received for our exports have increased relative to prices paid for imports, increasing a trade balance surplus and contributing to a current account surplus. A fall would mean imports are more expensive, creating a trade deficit and a deterioration of the current account

[Chelsea f.c.]

For cad a bit of economics in practise the steady increase in us interest rates over the year has meant an appreciating usd making aud relatively cheap in commodities markets leading to increased exports to china which if you watched news tonight this has led to a trade balance surplus which will decrease current account deficit... though note trade deficit with America were more inelastic imports has meant slower movement towards surplus where our commodities quoted in usds are more elastic so trade surplus is renewed quicker... I've heard j curve outside course but may interest you