Against the USD, the AUD has appreciated since Feb '16 from $0.68 to $0.77. This would:

Decrease Aus exports and increase imports from USA

Current figures show Australia's GDP to have grown 2.4% in the past year. This figure:

Falls short of the gov't goal of strong, sustainable growth

Politicians have been alarmed by stagnation in productivity growth because:

If AS can't keep up with AD, inflation pressures will rise

Cyclone Debbie is currently ravaging the Queensland coast. The effect of this will likely be:

Decreased AS in the short-run, increased AD in the long run

Inflation is currently 1.5%. This means:

general price rises are low. AD should increase.

In February, Australia's unemployment was at 5.9%. Which is NOT true?

This is a decrease from unemployment in Jan 2017

New robots threaten to replace more jobs (according to The AGE). This will:

Overall benefit the economy, increasing productivity and AS.

In March, the RBA left the interest rate at 1.5%. This is historically low rate should:

Decrease household savings ratio, increase consumption

Since 2009, China's GDP growth has decreased significantly. This is likely to affect Aus by:

Decreasing export demand, lowering AD

Consumer Confidence is close to 100. This means that:

People are just as optimistic as they were in 1996

Australian trade deals with Singapore

makes both Australia and Singapore better off

Currently the Gov't is proposing to lower corporate taxes. In theory, this is NOT designed to:

Bankrupt the Australian Government

The trend in business confidence over the last two years has stable and positive. This leads to

Increased (I) and AD, lower unemployment, higher inflation

The Hazelwood Power plant in VIC is closing down. Increased prices for electricity may:

Decrease AS, raise inflation, lower GDP, raise unemployment

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Duplicate of Economics - News Update 30 March

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VCE Economics Current events Unit 3 AoS 2 Aggregate Demand Domestic Economic Goals

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Questions 15

Answers

1
Disposable income is currently a low 2% due to stagnant wage growth. This will:
Decrease C and X
Increase C and X
Decrease C and Increase X
Increase C and Decrease X
2
Against the USD, the AUD has appreciated since Feb '16 from $0.68 to $0.77. This would:
Increase Aus exports and decrease imports from USA
Decrease Aus exports and increase imports from USA
Decrease Aus exports and decrease imports from USA
Increase Aus exports and increase imports from USA
3
Current figures show Australia's GDP to have grown 2.4% in the past year. This figure:
Falls short of the gov't goal of strong, sustainable growth
Will likely be coupled with high unemployment figures
Will likely be coupled with high inflationary pressure
Surpasses the gov't goal of strong, sustainable growth
4
Politicians have been alarmed by stagnation in productivity growth because:
If AS can't keep up with AD, inflation pressures will rise
More outputs are being produced than AD, causing surpluses
If AS can't keep up with AD, unemployment will rise
An increased labour force is working less than before
5
Cyclone Debbie is currently ravaging the Queensland coast. The effect of this will likely be:
Increased AD in the short-run, decreased AS in the long run
Decreased AS in the short-run, increased AD in the long run
Increased AS in the short-run, decreased AD in the long run
Decreased AD in the short-run, increased AS in the long run
6
Inflation is currently 1.5%. This means:
general price rises are low. AD should increase.
general price rises are low. AD will decrease.
general price rises are high. AD will increase.
general price rises are high. AD will decrease.
7
In February, Australia's unemployment was at 5.9%. Which is NOT true?
5.9% is higher than the Gov't target unemployment rate
More part-time jobs were lost than full-time jobs created
This is a decrease from unemployment in Jan 2017
Young people have nearly twice that unemployment rate
8
New robots threaten to replace more jobs (according to The AGE). This will:
Overall damage the economy, raising unemployment
Overall benefit the economy, increasing productivity and AS.
Overall benefit the economy, increasing C and AD
Overall damage the economy, increasing costs of production
9
In March, the RBA left the interest rate at 1.5%. This is historically low rate should:
Decrease household savings ratio, increase consumption
Decrease household savings ratio, increase consumption
Increase household savings ratio, decrease consumption
Increase household savings ratio, decrease consumption
10
Since 2009, China's GDP growth has decreased significantly. This is likely to affect Aus by:
Decreasing export demand, raising AD
Increasing export demand, raising AD
Increasing export demand, lowering AD
Decreasing export demand, lowering AD
11
Consumer Confidence is close to 100. This means that:
People are 100% optimistic = High AD
People are 100% pessimistic = Low AD
People are just as optimistic as they were in 1996
People are less optimistic than they were in 2009.
12
Australian trade deals with Singapore
Has no impact on Australia nor Singapore
makes Australia better off and Singapore worse
makes both Australia and Singapore better off
makes Australia worse off and Singapore better
13
Currently the Gov't is proposing to lower corporate taxes. In theory, this is NOT designed to:
Promote productivity, raise AS and lower general prices
Stimulate investment spending (I), raising AD
Bankrupt the Australian Government
Lower costs of production, boost GDP and lower unemployment
14
The trend in business confidence over the last two years has stable and positive. This leads to
Increased (I) and AD, high unemployment, low inflation
Increased (I) and AD, lower unemployment, higher inflation
Decreased (I) and AD, high unemployment, low inflation
Decreased (I) and AD, low unemployment, high inflation
15
The Hazelwood Power plant in VIC is closing down. Increased prices for electricity may:
Increase AS, lower inflation, raise GDP, lower unemployment
Increase AS, raise inflation, lower GDP, raise unemployment
Decrease AS, raise inflation, lower GDP, raise unemployment
Decrease AS, lower inflation, raise GDP, lower unemployment

Duplicate of Economics - News Update 30 March Flashcards | StudBud