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1. C 2. A 3. C 4. D 5. A 6. B 7. Debated- I say C 8. A 9. D 10. C 11. B 12. D 13. C 14. B 15. B 16. B 17. D 18. D 19. B 20. C

Even so, again, the question is asking about reducing the economic impact of a fall in the ToT - which means lower export revenue and a contraction in the economy etcetc. Increasing income tax rates (B) would act to aggravate the impact, thus further worsening standards of living etc

An increase in income tax rates --> possible reduction in spending/import spending - a fall in import volumes has nothing to do with import prices

The main focus of the question is which policy action is most likely to reduce the economic impact of the change in the ToT, rather than how to improve the ToT A fall in the ToT means lower export revenue --> lower AD and economic activity. Therefore C, an increase in discretionary expenditure...

The article says: -Australia’s real exchange rate has risen sharply in the last few years -This phenomenon is normal for commodity currencies during terms of trade shocks Does not that mean rising ToT = rising $A?

But during the GFC our ToT slumped .. http://www.rba.gov.au/chart-pack/commodity-prices.html .. It fell from 110 to 90 And the depreciation of the $A made imports more expensive

How does lower import spending impact on import prices? Lower spending = lower volume of imports, which has nothing to do with ToT

Extract from a speech by Glenn Stevens "But the general point is that high terms of trade, all other things equal, will raise living standards, while low terms of trade will reduce them." http://www.rba.gov.au/speeches/2010/sp-gov-291110.html Thus in 7 since the terms of trade has fallen, the...

B Economics/Education @ UNSW

You have to take into account 'CPI by expenditure group' ie. something along the lines of ... Food --> (120-100) (base CPI) x 0.15 (weighting factor) = 3 Housing --> (110-100) x 0.2 = 2 Health --> (150-100) x 0.05 = 2.5 Therefore Food contributes most to inflation

I think stop studying at about 8-9pm, take it easy, watch some tv, read a book or w/e; get a good night's rest - sleep at maybe 10-10.30. Try to get about 8 hours sleep cause it will help your brain process the info you were just studying. Wake up maybe 6.30-7 .. get ready etc. make sure you...

Hmm i would say 1) b 2) same 3) same

Wazzup

Speaking of labour market policies .. Does anyone know what type of labour market essay question they could ask? I'm stumped on how i would answer one -.-

Expansionary monetary policy involves the RBA buying second hand CGS to lower the cash rate and thus interest rate. Lower interest rates reduce the cost of borrowing, encouraging increase spending and investment by consumers and businesses. This will stimulate aggregate demand and economic...

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2010exams/pdf_doc/economics-marking-guide-10.pdf Q16

This is one of the 2010 HSC mc's i think ? The marking criteria put A OR D I see A as being possible because when a country is in recession, don't they want to boost their international competitiveness to boost their national income, growth, etc? Fixing their currency to a country with low I/R...