Jnu 2015 after paper

[RS]

Hey. How many marks did you guys attempt for? Paper was easier than last year. I am expecting cut off to go high.

[amalgamateking]

I attempted 92 marks. Left 6 one markers and 1 two marker. How many did you attempt?

[amalgamateking]

Btw I am NOT expecting cutoffs to be much higher than last year (73.5, with highest marks being 83 afaik). Top mark should be 85ish, cutoff should be 75 or so

[RS]

Good. I attempted for 80 marks with 90% accuracy I suppose. Lil afraid about the cut off.

[RS]

Today's paper was little difficult from past year papers. A lot of dte and international trade theory was asked. I lest 11 questions. Couldn't attempt. What are your views guys?

[amalgamateking]

It was tougher than yesterday. I attempted 86 marks. Left 7

Also with difficulty , it has 50% negative marking

[amalgamateking]

Just wanted to verify the answers to a couple of questions that came in SIS and SSS 2015.

SSS-


The AD curve shifts determine the output level
1. if and only if AS is positively sloped
2. if and only if AS is invariant to prices
3. if and only if AS is variant to prices
4. if and only if prices are constant


SIS-

What were the answers to the Compensating Variation and Equivalent Variation questions?

[anadi]

SSS

Variant with prices, no?

SIS

Compensating variation = - 50/3
Equivalent variation = 100/3

[RS]

It was written as not invariant. Means variant. You are right. And for sis I dint attempt these three ques

[amalgamateking]

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[amalgamateking]

I should also add the disclaimer that this is what i think :P

[anadi]

Isn't EV  the money income to be given to the consumer so that she can just afford to consume the new bundle (as in, the bundle with the new prices) with the initial prices?

So if prices have decreased, you must give the consumer more money to be able to afford the new bundle with old prices.

[anadi]

And regarding the AS AD question, did the question mention anything about the long run? Because I remember finding the ' not invariant ' option the most suitable. I could be wrong, though.

[amalgamateking]

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[anadi]

Oh alright. Thanks!

Also, I think there will be an effect on the output with an upward sloping aggregate supply curve, unless they specifically mention medium/long run. What, then, is the point of all those Blanchard chapters on effects of a shift of Aggregate demand curves with an upward sloping aggregate supply curve? :p

Left 6 in SIS.

[amalgamateking]

The point is exactly that! Maybe I could not explain my logic clearly enough. Blanchard states that Money is neutral (money supply is like AD shift), BECAUSE AS is sensitive to price changes. If prices are fixed (Blanchard says this) then the degenerate case is that of the IS-LM model. Obviously there, AD shifts increase output. You can check out the little table he makes near the end of the chapter. It is clearly shown that only shifts in AS (his section on stagflation) affects output in the AD-AS model.

Keynes was different from Classical theorists in his thinking that AD may also affect output, as long as all factors weren't fully employed. Again, Keynes' AS is horizontal over a stretch, then is vertical at full employment.

Finally, by your logic it doesn't even need to be positively sloped. For even a horizontal AS, AD shifts will bring about output rise, isn't it?

You did the maths sum where we had to find discontinuity (if any)? What answer did you get?

[anadi]

I understand the Keynesian classical theories. But I think I'll stick to what I think is correct. Maybe my view is too simplistic.

Can't seem to remember the answer for that question. What answer did you get?

[anadi]

Keynesian and * Classical  is what I meant.

[amalgamateking]

I had to leave it. The options were
a. not discont
b. discontinuous at -1 and -3
c. discont at 1
d. cant remember this one