<p>"if u think about it, the result of pumping money into the econ is bringig the value of the $ up, so in the short run exports go up but in the long run they will go down"</p>
<p>if that's right...then I got it right! woo!</p>
<p>but I know I missed at least one point on the graphs because I marked the horizontal axis wrong on both the foreign exchange and money market graphs...stupid me.</p>
<p>In the short run, exports go up. Our stuff is cheaper; people buy more.</p>
<p>i agree dark ruler</p>
<p>What do people think about the subsidy?</p>
<p>For question 1 of the Macro FR, was the first thing you do shifting the demand for money in the money market right?</p>
<p>You mean up? Because the supply curve is perfectly inelastic, so demand goes up or down. I shifted it up, but I wasnt 100% sure.</p>
<p>Yes, by right I mean up. For the GDP question I put no for the stock brocker one, because I thought it was a wealth transfer... Looks like I ****ed up the second question; oh well.</p>
<p>I dont think commisions count, even by the income method.</p>
<p>dudes lets get on aim</p>
<p>wow. teacher said he wouldn't even teach game theory bc it wouldn't be on the ap micro test. wow</p>
<p>Micro: I learned the basics of each market the day of the test. I learned what a pay off matrix was during the test. When I first saw it i was like, what is this!? After looking at it for about 5 minutes I figured it out. I had big holes in my learning and thank God they weren't exposed in the test. I think I got a 3-4 on the test. Good self studying experience, I think I'll self study another AP test again next year.</p>
<p>
[quote]
wow. teacher said he wouldn't even teach game theory bc it wouldn't be on the ap micro test. wow
[/quote]
Funny thing is, the Princeton Review book said, "The AP has never tested this before, but it'll probably be on this year's exam." Damn good predicting skills.</p>
<p>if one gets 10 MC wroing and loses 3 marks for FR...can s/he get a 5?</p>
<p>i really enjoy the payoff matrix thing....once you get wut it means.....i would say its the easiest question you can ever find on the test........</p>
<p>Yes, that's a 5. It's like a 78% for a 5 I heard. Correct me if I'm wrong.</p>
<p>So what's the general consensus for Macro number 1 on the currency? Does it appreciate or depreciate? Are there any?</p>
<p>Also for Micro, for the monopoly one, wouldn't tax and subsidy both change MC?
Can someone put their answer for the oligopoly question? My friend and I are in a major disagreement over the dominant strategy for each company.</p>
<p>A lump-sum tax doesnt shift MC, because its a set tax. It doesnt matter how many units you produce, the tax is the same. Therefore, its a fixed cost, and counts as part of the ATC, not the MC.</p>
<p>Yes, the MC would increase (shift upward) for the "lump-sum" tax and the MC would decrease (shift downward) with the subsidy.</p>
<p>^ A lump sum tax does not affect MC, because it doesnt not affect the cost of production per unit. It changes the total cost, because the tax is the same regardless of production. Therefore, the lump-sum tax does not affect the amount the monopoly will produce, because the tax must be paid no matter how much is produced. If the tax is 1 million, 1 million will be paid whether 1 unit is produced, or 1,000 units. A per-unit tax would affect MC. Does the per-unit subsidy change profits?</p>
<p>RE: writonthetransom</p>
<p>I said the EXACT same thing as you did. I hope it's right. It made sense to me when I wrote it...</p>
<p>Demand for Money in Money Market is up because they're demanding dollars when they sell their stocks. Since price levels are down, I said Demand for Dollars goes down because they lost money in the stock market (your reasoning makes more sense though), and then dollar falls, exports increase, and AD goes up which also increases output and employment.</p>