Reference no: EM133271349

1. Which of the following situation/s will decrease GDP?

a. The Australian currency depreciates.

b. Australia's trading partners have a much lower inflation rate than Australia.

c. Australian exports find new markets in Africa.

d. A ban on made-in -Australia goods exported to several countries.

e. Energy costs are reduced as a result of technological advancements in renewable energy.

f. The Government reduces spending in order to repair its budget deficit.

2. Jack lost his job as a kitchen hand because the restaurant started to use a dishwasher. Jack's unemployment is

a. Seasonal unemployment.

b. Structural unemployment.

c. Cyclical unemployment.

d. Frictional unemployment.

3. It is reasonable to assume that when GDP decreases, the GDP gap widens.

True

False

4. Which of the following will shift the AS curve to the right as companies produce more? Marks will be deducted for wrong answers.

a. Introduction of new technology improves productivity.

b. Production costs (e.g. wages, rental cost, cost of energy) increase.

c. The Government increases the rate of tax paid by companies.

d. Deregulation that increases business costs.

e. Deregulation that decreases business costs.

5. Which of the following statements do you agree with if Australia's GDP increased by $0.2 trillion to $1.3 trillion?

a. Possibly, goods and services produced by Australian companies all over the world increased by $0.2 trillion.

b. Possibly, Australia's population increased by 0.2 trillion.

c. Possibly, goods and services produced in Australia increased by $0.2 trillion.

d. Possibly, Australia's imports increased by $0.2 trillion.