Lol I thought this test was going to be a lot harder. I had been legit freaking out about this test
How does a cut in income based taxes affect the LRAS? does it affect consumption only or does the saving part of receiving tax cuts contribute to investments because of lower interest rates?
@Dreamday I said that it doesn’t affect LRAS, it only affects AD
wait like 5 people said they put import and trade for fr 2 the last one … even the smartest person in my grade lol
A lot of people were pretty confused on that one - It was like 50/50 with my class, but I think produce domestically is right.
people said trade domestically pretty much everyone i talked to ??? aw man May God be with us
I agree with @mattpick. A lot of people in my grade put produce domestically, and I am 110% sure that is the right answer. Also, no effect on LRAS, but a rightward shift in AD.
Country X should produce domestically, pretty sure
Country X: 6 F(forgot what this good was) to 8 solar panels
Country Y: 6 F to 12 solar panels
offering Country X 2F for 1 solar panel is a really, really horrible deal, since Country X can produce 2F for 8/3 or 2.6666 solar panels
(right?)
To everyone confused about that problem, the correct answer is produce domestically. If X produced 2 furnaces, they’re giving up 8/3 solar panels. And since 8/3 is more than the 1 they would receive by trading, X should keep producing themselves.
Also, wouldn’t buying currency increase the demand, not supply since you demand currency when you buy…
@Dreamday I don’t think so. A central bank buying up the currency means there’s less available in the market, shifting supply to the left.
what about that mc question about real interest rate, appreciation/depreciation, and exports would change in the short run. I think i said the currency would appreciate and real interest rate would increase or something
did anyone put excess capacity as a mc answer? remember putting that ?
i said that country x should produce domestically. would it have been right to say that country x could produce 3 furnaces and 4 solar panels?
If anyone’s taking the exam in a foreign country, let me know.
yes i think i did. or i was choosing between that and something else. @chihuahua1
@mattpick I’m from Canada and took the exam today. I don’t know if that’s what you mean by foreign country. Any questions?
For micro or macro? Either way, I was curious if they use different versions for different nations, but since we’re in the same time zone ours is probably the same. Do you think the exam you took is the same as the U.S. on?
Did country X or Y have the comparative advantage in furnaces? I put x but I was confused because then in the next part I said x should produce panels domestically, even though it had the comp adv in furnaces
okay basically i’m here trying to understand what you guys are talking about but obviously we had different exam lol
@mattpick I’m in way diff time zone than US so basically all by FRQ’s were diff