with Q10 the unemployment/growth one... this is what i thought... does anyone agree?
As far as i know... the question said about how there was strong levels of economic activity(something like that), and which situation could keep the unemployment rate at 4%.
To keep the unemployment rate at 4%, with continuing strong demand for labour (meaning the unemployment rate would go down), more people need to enter the workforce to keep it at 4%. It means that although people are still gaining employment (due to strong demand), because there are more people participating in the workforce (actively seeking work), the unemployment rate remains unchanged (well it actually wouldn't, but for the question it does)
I don't know... that's just what I thought. I can't remmeber what the answers were, only A.
A - Raising the compulsory school leaving age (This would decrease the participation rate, and as strong growth continued the unemployment rate would fall below 4%)
I thik the participation rate one was C - which in my view is correct.
and also... with the question about a movement along the curve, I really don't like it... this is what i thought... I rpobably thought about it too much though...
I was under the impression that any movement ALONG the supply curve could only result from a change in price, nothing else - I've read it several times in several text books, does anyone else agree? Due to that I put the answer as A. I chose it over D, as it refers to increased 'costs' rather than increased 'prices' - it does not shift the curve, only moves along it - I think my point is very arguable - Although the change in price will cause a surplus situation, it does not move the supply curve, only along it.
i thought the exam was pretty good. not enough areas to put current context in though (except for budget examples) - and many questions asked for measures to 'reduce' inflatory pressures... that's pretty hard to talk about the new developments because it isn't part of the question.
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