Rafy said:
Post your thoughts on the 4 extended response options. (questions 25-28.)
How did you go? Which 2 questions did you choose?
I generally write out the points first on the paper before i write it in the booklet, so here goes:
26:
1) Intro to macro/micro crap
2) Macro: describe fiscal
3) Keynesian economics/multiplier effect
4) counter cyclical, sustained GDP
5) Monetary policy description
6) inflation targeting
7) ER stability (dirtying the float)
8) micro policy description
9) drop protections, technical/allocative efficiency
10) deregulate labor market, occupational mobility
11) conclusion
with a diagram here and here.
27:
1) define ER
2) Causes of demand: speculation, investment
3) tourism and special events, export demand,
4) demand causes appreciation
5) inflation goes down
6) ToT goes up
7) valuation effect on CAD
8) import revenue increase for elastic demanded goods
9) export revenue decrease due to lower competitiveness
10) investment in flow, worsen CAD
11) speculation and ER volatility
12) RBA response to slow down appreciation
13) side effect of RBA's response
14) conclusion
even though i have more points for 27, i actually wrote more for 26, taking up the entire booklet, but one page left for 27
anyway, that's how I did it, i think i went better for the 26 than 27. damn i screwed up 27