WHO WAS MILTON FRIEDMAN? http://www.youtube.com/watch?v=RWsx1X8PV_A Republican/Conservative darling But he was a conservative out of expedience “You‟re right, we did it. We‟re very sorry. But thanks to you, we won‟t do it again.” Ben Bernanke (current Fed chairman) on the Great Depression Virulently campaigned AGAINST the prohibition of drugs… not your average „conservative‟ He considered his role in the abolition of the draft to be his finest achievement
FRIEDMAN & THE DRAFT Mr. Westmoreland: “I do not want to command an army of mercenaries.” Mr. Friedman interrupted: "General, would you rather command an army of slaves?" Mr. Westmoreland: "I dont like to hear our patriotic draftees referred to as slaves." Mr. Friedman: "I dont like to hear our patriotic volunteers referred to as mercenaries. If they are mercenaries, then I, sir, am a mercenary professor, and you, sir, are a mercenary general; we are served by mercenary physicians, we use a mercenary lawyer, and we get our meat from a mercenary butcher."
BASIC STUFF Use cover sheets, fill them out properly Use a computer (as much as you can), use a dark pen for other writing You guarantee zero if you don‟t answer. At least explain why you‟re not answering, unless your explanation is that you couldn‟t be bothered If you‟re not sure what the question is asking, explain what interpretation/reservations Explaining your thought process will turn a 2:1 into a 1st and a fail into a pass… CONVEY UNDERSTANDING
Q1) The answer is in your booklet (pg 11). Rewrite it. Make sure you define/explain EVERY term („real‟, „income‟) etc Use Nigel‟s notation/definitions for as much as possible. If he isn‟t marking your exam, one of us will be and we‟ll be using his notation Introduce notation like this:…income, Y, after deducting transfer payments, T. or …income (Y) after deducting transfer payments (T).
Q2) Patronize me, I won‟t be offended If you‟re using a formula for the first time, write it down... (in your answer, not now) APC = C/(Y-T) Then write each line of your working Then make clear your answer is your answer Don‟t assume I will fill in the gaps, spell it out for me. Show me every step you took, like a really boring person telling a story
Q3) A PICTURE TELLS 1000 WORDS A picture tells a thousand words I‟d definitely rather look at a picture than read a thousand words on a Friday afternoon Label axes, levels… CA , CB Keep referring to the diagram in your answer
KEY POINTS Keynes: MPC the same for A and B, time does not matter. I see money, I spend money Friedman: Key differences? SR v LR… hence we observe a pivot effect Smooth C, sure, but within limits. A on a higher SR C function MPC probably lowerfor B… why? Which do we think is more plausible, K or F?
4) Again, define what you think the question means e.g. what does „determine‟ mean? More diagrams please, tables too Give yourself enough time to find the data, make sure you source it Think about which data are the most descriptive Start taking this seriously. The ability to present your work in a coherent and professional manner is what employers are looking for, regardless of the industry… and it takes practice.