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Re: 2015 HSC Economics Marathon The answer is that the elasticity of supply changes (the supply curve is non-linear), and thus when you have macro policy to lower unemployment but it still will be higher then the NAIRU, then you don't have demand pull inflation because supply will still be...

Yeah I agree, kind of realised this myself as I wrote that last post - just I mean in terms of the diagrams in reality they are not linear and looking at it in a linear way can lead you to false conclusions

Demand pull inflation can happen before the LRAS is met, increases in demand will push up the overall price level either way. For example, say the economy is not at its maximum productive capacity but a certain amount of people want to buy stuff, when the amount of people that wants to buy stuff...

Re: 2015 HSC Economics Marathon Gonna chuck this one out here because no one is responding to the thread I made, but it would make a pretty decent HSC question anyway, comes right from the syllabus and would be an awesome differentiator "Explain why inflation does not accelerate above the...

Why does accelerating inflation only occur below the NAIRU? Or, in other words, why does a NAIRU exist in the first place because accelerating inflation can occur anywhere... The logic here: a) Lowering unemployment below NAIRU → accelerating inflation (correct) If macro policy...

Re: 2015 HSC Economics Marathon An advantage is that bilateral trade agreements will result in greater levels of free trade between the nations apart of them, meaning that there is true competition which will foster innovation and improvements in aggregate supply, leading to higher levels of...

Re: 2015 HSC Economics Marathon There's another one I found in notes I bought (Rising asset prices may benefit speculators - who are able to increase their capital gain) but it doesn't really make sense to me, could someone explain it?

Re: 2015 HSC Economics Marathon I reckon the positive would get heaps of people? Inflation can have a positive impact on some individuals, as rising asset prices may increase their capital gain. This is particular due to the fact that overall inflation is based on the CPI, and that different...

Re: 2015 HSC Economics Marathon Underemployment refers to when members of the labour force are either not employed for the number of hours they desire or using skills simpler then they have developed, while hidden unemployment refers to workers who are not actively seeking work but have the...

Plus what nobody is said is I hope they would have the audacity to consider future forecasts...

Re: 2015 HSC Economics Marathon Found it as a past HSC, the only guidelines were that the explanation was clear and accurate for full marks and it was pretty sold so no sample answer was provided. The way you took it (2) is good, but I wouldn't directly link more efficient productivity to a...

Yeah saw that question, the markers comments said you could approach it either like an equation or through explaining the link between the Financial Account (as part of KAFA) and NPY through returns on investment.

Re: 2015 HSC Economics Marathon Rising interest rates mean that investors will have a greater return on their investment. As a result, more investors will want to invest in Australia because they will have greater levels of returns. This investment, through foreign debt and foreign equity...

Re: 2015 HSC Economics Marathon Yeah but I mean global financial architecture isn't a syllabus point so it's a bit of a stretch to take that and then link it to currency, and that page is more a part of the reasons for differences for nations, almost all the points are like 'foreign debt...

Man this resonates with me so well. Good to see other people that dominated the HSC are going through the same thing!

Thanks bro!

Enjoyed - BOP (I actually found it kind of interesting haha) all of topic 1 (except international organisations was a bit dry), economic issues (especially growth), haven't covered macro yet (in class but not mentally haha) but it sound good Disliked - exchange rates (just slightly - like some...

Re: 2015 HSC Economics Marathon That's a tricky one, it would be good to hear you or other people have to say because there is nothing in any of the textbooks on it, but when I think about it: Increased integration of financial systems worldwide has lead to the value of floating currencies...

I'm sure there's plenty of demand to meet your supply, looking forward to the equilibrium :p but yeah I saw your predictions last year and they were really good (although the case study shocked everybody) so I am looking forward to it - any thoughts you could share before trials?

I knew that, but it made me curious - when are the trial exams finalised?