1.Which of the following occurrences will be measured directly as an increase in Australia's GDP? (Do not include any likely follow-on impacts.)
A Chinese owned mine situated in Australia extracts and sells iron ore.
The government increases the weekly payment paid to the unemployed.
An Australian buys a second hand Australia textbook from their classmate.
An Australian consumer orders a phone online from a Singaporean retailer.
4.Which of the following will cause Australia's Aggregate Demand curve to shift to the right?
An increase in the Australian price level
The Australian dollar appreciates
A decrease in the Australian price level
The Australian dollar depreciates
5.Which of the following would not shift the long run aggregate supply curve to the right?
More productive ways to organise production discovered
A decrease in inflation expectations
Increased immigration of skilled workers
6.The long-run adjustment to a negative supply shock results in
the short-run aggregate supply curve shifting to the right.
the price level rising.
workers being willing to accept higher wages.
7.One possible open market operation (OMO) that the RBA could use is to purchase government bonds from commercial banks. The RBA would use this type of OMO in what situation?
In response to an unexpected decrease in money demand.
Only when they raise the cash rate target.
In response to an unexpected increase in money demand.
Only when they lower the cash rate target.
8.Which of the following will not occur in response to a decrease in the cash rate target set by the RBA (all else constant).
Interest rates across the economy will tend to decrease.
Consumers will save less.
Business investment spending will increase.
The Australian dollar will appreciate.
9.In a fractional reserve banking system, assuming away various complexities such as taxes, imports, and cash savings, the simple deposit multiplier can be used to calculate the ratio of the amount of new deposits created by banks to the amount of new reserves.
For example, if the reserve ratio was 20%, the simple deposit multiplier would be 5.
If we were to have a 20% reserve ratio, but also incorporate the possibility that some proportion of spending is spent on imports, then the multiplier would
be greater than 5.
still be equal to 5.
be less than 5.
10.Short-run resource crowding out is likely to be less of a problem when the economy is _________.
above potential GDP
at potential GDP
below potential GDP
11.Which of the below is an example of expansionary fiscal policy
An decrease in Government spending on roads.
A decrease in income tax rates.
A decrease in tax revenue due to lower profits of businesses.
An increase in unemployment benefits paid due to more people being unemployed.
12.What is the most likely reason that estimates of the structural budget balance in previous years are likely to differ between different economic analysts?
Potential GDP is unknown and must also be estimated.
It is hard to know if there is a budget deficit in a given year.
Government net debt is not publicly reported data.
Government spending data is inaccurate.