Being the damn kind soul (and catering to unbelievable slackers like the guy with a clone in our class) I'm giving to yall the DRQ 2006 answers so you can copy model answers to show a certain moron what we (especially guys from on top of the hill. At least we're from the top of a hill, not a trash can) are made of. Which is of course, not a lot of fats and crap.
So here we go homies:
(btw, G stands for Germany, S stands for Singapore in case your intelligence is as bad as our idiot of a
The Troubled German Economy (AWWWW SO SAD BOO HOO)
a. G: 1132.5/1985.2 = 0.57
S: 69167/164265 = 0.42
G's consumption as proportion of total income > S
(i) Slow growth of C in 01, decrease in 02, stagnant in 03
Investment decrease in 01 and 02
Decrease in net X in 03
Probably due to high taxes (finance social benefits) result: decrease in C and I
b. (ii) Restructure the factories in the east to increase efficiency. By increasing productivity, increases in wages are justified and production costs are under control. This will reduce unemployment and reduce the burden to taxpayers. If direct taxes are reduced, probably C and I will be increased to stimulate growth (2000 to 2002 net X is increasing despite slow growth, hence domestic demand is probably the engine of growth rather than external demand)
c. High unemployment in the east à relatively low wages à Cheaper exports à Increase in exports
High unemployment, high taxes à slow economic growth à Decrease in imports
(X-M) increases à Trade surplus
However inefficient factories in the east make production costs painfully high à Decrease in export competitiveness à Decrease in exports
Therefore, prediction of trade surplus based on extract 1 would be ambiguous
d. G: Investment increases by 2.4%
S: Investment decreases
Probably due to world economy slow down in 2002 & 2003 which lead to less FDI in Singapore. Germany probably less dependent on FDi and therefore less affected by slowdown in other countries (other possibilities: Loss of FDI to other developing countries like China, India, Vietnam)
e. Decrease in I in 01 to 03; Increase net X in the period
01: Decrease in I > Increase in (X-M) à decrease AD à Decrease GDP via multiplier effect
02 % 03: Increase in (X-M) > Decrease in I à Increase in GDP by 1.9% and 1.2% due to relatively small increase in AD after offsetting & small multiplier of Singapore
The answers for the 1st DRQ from econs TYS 2006, not the Cambridge answers though, these are my tuition teacher's own answers. I don’t have his answers for the 2nd DRQ though coz he never made me do it, so I'll be attempting to extract it from him during my tuition tomorrow.
Play is for now, work is for tomorrow.
Your neighbourhood friendly slacker/cheater/skiver/cheapskate (though only trainee, realized there's much bigger cheapskates in the class)
chris seah
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