ECO202 - Macroeconomics Assignment Problem

Reference no: EM132501138

ECO202 - Macroeconomics Assignment - Elite Education Institute, Australia

Question 1 - To support people through the economic shock caused by the COVID-19 Pandemic, the Australian Government published some special benefits for those unemployed. How do you think these actions might mitigate the costs of unemployment?

Question 2 - An economy is described by the following equations:

C = 1300 + 0.75(Y - T) IP = 500

G = 1200

X = 110

M = 10

T = 1500

Y* = 12000

You are required to:

1. Find a numerical equation linking planned aggregate expenditure to output.

2. Find exogenous expenditure and induced expenditure in this economy.

Question 3 - Define the relationship between an interest rate and people's saving rate. Will the decreased saving in Australian households become a big problem for the economy?

Reference no: EM132501138

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