<p>my thoughts on macro (not sure if it’s right)</p>
<ol>
<li><p>a) graph with lras sras and ad intersecting
b) s up, real interest rate down
c) they increase, economic growth speeds up
d) demand increases for euro and the euro appreciates
e) account becomes a surplus</p></li>
<li><p>a) both b) point on the frontier c) point inside the frontier d) increase spending/lower taxes e) sras increases</p></li>
<li><p>a) graph of srpc b) point moves up along the graph or the graph moves entirely up, not sure c) don’t think lrpc changes d) WOW lol i completely skipped this part on my test i think nominal changes but real doesn’t idk e) 5% i believe</p></li>
</ol>
<p>For Microeconomics, FRQ #3, when it asks for Deadweight Loss, there is none right? I looked at a past FRQ with an externality and it said there was no DWL on that one, so I put it no DWL on the 2013 test. I believe it is because DWL deals with inefficiency caused by not producing at productive efficiency, but can anyone explain why? Pretty sure I got it right but just wondering if there was a justification. In that case, Deadweight loss couldn’t have shifted if there wasn’t any in the first place.</p>
<p>Got everything wynter got. Just to clarify:</p>
<p>3a) Graph of SRPC.
b) SRPC shifts up.
c) No change to LRPC.
d) Nominal increases, real remains unchanged.
e) 5%</p>