Question 1

The experience of recessions in Australia has shown that:

Accepted Answer

A) cyclical unemployment has been non-existent. 
B) unemployment continues to rise after a recession ends. 
C) unemployment falls about 12 months after a recession begins. 
D) unemployment rises on average about 5 percentage points 12 months after a recession begins. 
A) cyclical unemployment has been non-existent. 
B) unemployment continues to rise after a recession ends. 
C) unemployment falls about 12 months after a recession begins. 
D) unemployment rises on average about 5 percentage points 12 months after a recession begins.

Question 2

Outline the various actions the government sector could take to promote growth.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The government should secure private pro

Question 3

What type of consumer good is most affected by the business cycle - durable goods or non-durable goods? Why?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Some workers lose income during an econo

Question 4

Suppose that real GDP for 2017 was $10 000 billion and real GDP for 2018 was $9 500 billion. What is the rate of growth of real GDP?

Accepted Answer

A) -10% 
B) 1% 
C) 5% 
D) -5% 
A) -10% 
B) 1% 
C) 5% 
D) -5%

Question 5

Explain how a decrease in the tax rate on interest earned on savings would affect saving, investment, the interest rate and economic growth.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

One determinant of the amount of househo

Question 6

If, in a closed economy, real GDP is $25 billion, consumption is $15 billion, and government purchases are $7 billion, what is the total saving in the economy?

Accepted Answer

A) $7 billion 
B) $15 billion 
C) $25 billion 
D) $55 billion 
A) $7 billion 
B) $15 billion 
C) $25 billion 
D) $55 billion

Question 7

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2016?

Accepted Answer

A) It has decreased more times than it has increased. 
B) It has increased by more than five times. 
C) It has doubled. 
D) Nominal GDP has increased but real GDP has slowly decreased. 
A) It has decreased more times than it has increased. 
B) It has increased by more than five times. 
C) It has doubled. 
D) Nominal GDP has increased but real GDP has slowly decreased.

Question 8

As a proportion of GDP, the Australian economy produced fewer services in the 2000s than it did in the 1950s, which has contributed to an increase in economic stability over time.

Accepted Answer

A) True 
 B)False

Question 9

Let G = government purchases; T = taxes; TR = transfer payments. There is public dissaving if:

Accepted Answer

A) G + TR > T. B) G + TR G + T. D) TR < G + T. A) G + TR > T. B) G + TR G + T. D) TR < G + T.

Question 10

The only way the standard of living of the average person in a country can increase is by increasing ________ faster than ________.

Accepted Answer

A) production; population 
B) income; population 
C) population; production 
D) population; income 
A) production; population 
B) income; population 
C) population; production 
D) population; income

Question 11

When the capital stock per hour worked:

Accepted Answer

A) increases, labour productivity in increases. 
B) increases, labour productivity falls, as workers are being replaced with capital and machinery. 
C) decreases, labour productivity increases. 
D) increases, capital productivity increases. 
A) increases, labour productivity in increases. 
B) increases, labour productivity falls, as workers are being replaced with capital and machinery. 
C) decreases, labour productivity increases. 
D) increases, capital productivity increases.

Question 12

What are financial securities that represent promises to repay a fixed amount of funds?

Accepted Answer

A) bonds 
B) shares 
C) savings accounts 
D) certificates of deposit 
A) bonds 
B) shares 
C) savings accounts 
D) certificates of deposit

Question 13

Which of the following is not a phase in the business cycle?

Accepted Answer

A) shutdown 
B) trough 
C) peak 
D) expansion 
A) shutdown 
B) trough 
C) peak 
D) expansion

Question 14

Using the market for loanable funds, which of the following has the potential to raise the real interest rate?

Accepted Answer

A) an increase in the demand for loanable funds 
B) an increase in the quantity demanded of loanable funds 
C) an increase in the supply of loanable funds 
D) an increase in the quantity supplied of loanable funds 
A) an increase in the demand for loanable funds 
B) an increase in the quantity demanded of loanable funds 
C) an increase in the supply of loanable funds 
D) an increase in the quantity supplied of loanable funds

Question 15

Which of the following is most likely to be able to sustain economic growth in an economy?

Accepted Answer

A) sustained increases in the labour force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) the accumulation of economic resources 
A) sustained increases in the labour force participation rate 
B) technological change 
C) increases in capital per hour worked 
D) the accumulation of economic resources

Question 16

An increase in the real interest rate will:

Accepted Answer

A) decrease consumption and reduce investment. 
B) decrease saving and investment. 
C) increase investment and government spending. 
D) decrease consumption and investment. 
A) decrease consumption and reduce investment. 
B) decrease saving and investment. 
C) increase investment and government spending. 
D) decrease consumption and investment.

Question 17

How can public savings in the economy be increased?

Accepted Answer

A) raising taxes 
B) raising government spending 
C) lowering taxes 
D) raising transfer payments 
A) raising taxes 
B) raising government spending 
C) lowering taxes 
D) raising transfer payments

Question 18

'Labour productivity' increases when capital stock per person falls, as there is a trade-off between capital and labour.

Accepted Answer

A) True 
 B)False

Question 19

A federal budget surplus could be reduced by:

Accepted Answer

A) raising taxes. 
B) lowering government spending. 
C) increasing transfer payments. 
D) lowering interest rates. 
A) raising taxes. 
B) lowering government spending. 
C) increasing transfer payments. 
D) lowering interest rates.

Question 20

Let I = investment; Y = total income; C = consumption; G = government purchases.
In a closed economy:

Accepted Answer

A) I = Y - C - G. 
B) I = Y + C - G. 
C) I = Y - C + G. 
D) I = Y + C + G. 
A) I = Y - C - G. 
B) I = Y + C - G. 
C) I = Y - C + G. 
D) I = Y + C + G.

The experience of recessions in Australia has shown that:

Outline the various actions the government sector could take to promote growth. _ _

What type of consumer good is most affected by the business cycle - durable goods or non-durable goods? Why? _ _

Suppose that real GDP for 2017 was $10 000 billion and real GDP for 2018 was $9 500 billion. What is the rate of growth of real GDP?

Explain how a decrease in the tax rate on interest earned on savings would affect saving, investment, the interest rate and economic growth. _ _

If, in a closed economy, real GDP is $25 billion, consumption is $15 billion, and government purchases are $7 billion, what is the total saving in the economy?

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2016?

As a proportion of GDP, the Australian economy produced fewer services in the 2000s than it did in the 1950s, which has contributed to an increase in economic stability over time.

Let G = government purchases; T = taxes; TR = transfer payments. There is public dissaving if:

The only way the standard of living of the average person in a country can increase is by increasing faster than .

When the capital stock per hour worked:

What are financial securities that represent promises to repay a fixed amount of funds?

Which of the following is not a phase in the business cycle?

Using the market for loanable funds, which of the following has the potential to raise the real interest rate?

Which of the following is most likely to be able to sustain economic growth in an economy?

An increase in the real interest rate will:

How can public savings in the economy be increased?

'Labour productivity' increases when capital stock per person falls, as there is a trade-off between capital and labour.

A federal budget surplus could be reduced by:

Let I = investment; Y = total income; C = consumption; G = government purchases. In a closed economy:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 5: Economic Growth, the Financial System and Business Cycles

The experience of recessions in Australia has shown that:

Outline the various actions the government sector could take to promote growth. _____________________________________________________________________________________________ _____________________________________________________________________________________________

What type of consumer good is most affected by the business cycle - durable goods or non-durable goods? Why? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Suppose that real GDP for 2017 was $10 000 billion and real GDP for 2018 was $9 500 billion. What is the rate of growth of real GDP?

If, in a closed economy, real GDP is $25 billion, consumption is $15 billion, and government purchases are $7 billion, what is the total saving in the economy?

Which of the following describes the growth in real GDP per person in Australia from 1901 to 2016?

As a proportion of GDP, the Australian economy produced fewer services in the 2000s than it did in the 1950s, which has contributed to an increase in economic stability over time.

Let G = government purchases; T = taxes; TR = transfer payments. There is public dissaving if:

The only way the standard of living of the average person in a country can increase is by increasing ________ faster than ________.

When the capital stock per hour worked:

What are financial securities that represent promises to repay a fixed amount of funds?

Which of the following is not a phase in the business cycle?

Using the market for loanable funds, which of the following has the potential to raise the real interest rate?

Which of the following is most likely to be able to sustain economic growth in an economy?

An increase in the real interest rate will:

How can public savings in the economy be increased?

'Labour productivity' increases when capital stock per person falls, as there is a trade-off between capital and labour.

A federal budget surplus could be reduced by:

Let I = investment; Y = total income; C = consumption; G = government purchases. In a closed economy:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Outline the various actions the government sector could take to promote growth. _ _

What type of consumer good is most affected by the business cycle - durable goods or non-durable goods? Why? _ _

The only way the standard of living of the average person in a country can increase is by increasing faster than .