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3. Many people find the current unemployment figures for Australia at 5.5% unbelievable. Why is this? Why might the official statistics be inaccurate?
4. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What eventually happens to the level of savings? What would happen to equilibrium income if there is a sustained rise in private investment spending?
5. State the difference between:
-economic contraction and economic expansion.
-between appreciation and depreciation
- between the balance of payments deficit and the budget deficit
-between the bond rate and interest rate
8. The Australian economy has gone nearly 22 years without a recession meaning a whole generation have grown up never experiencing a recession. What are the macroeconomic dangers now facing Australia? When commentators suggest that the Australian economy is a two -speed economy what specifically are they referring to?
10. The Australian dollar has fallen by 12 US cents in the last few months. What are the macroeconomic consequences of this currency movement?
4. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What eventually happens to the level of savings? What would happen to equilibrium income if there is a sustained rise in private investment spending?
5. State the difference between:
-economic contraction and economic expansion.
-between appreciation and depreciation
- between the balance of payments deficit and the budget deficit
-between the bond rate and interest rate
8. The Australian economy has gone nearly 22 years without a recession meaning a whole generation have grown up never experiencing a recession. What are the macroeconomic dangers now facing Australia? When commentators suggest that the Australian economy is a two -speed economy what specifically are they referring to?
10. The Australian dollar has fallen by 12 US cents in the last few months. What are the macroeconomic consequences of this currency movement?
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