aos2 revision+ more

Question 1

current Eco growth

Answer 1

• 1.3%

Question 2

current Inflation

Answer 2

• 2.4%

Question 3

current Unemployment

Answer 3

4.1%

Question 4

disinflation v deflation

Answer 4

Disinflation, when prices are rising, but the rate of the increase in slowing. In contrast, deflation is the situation where overall consumer prices are falling. Deflagtion can go below zero whereas disinflation remains positive.

Question 5

headline inflation

Answer 5

captures changes of price of all goods and services consumers purchase in an economy

Question 5

how increase in labour force increases UE rate

Answer 5

the labour force is the Number of employed and unemployed people activity seeking work as a percentage of the working age population. An increase in the participation rate would increase unemployment rate, because as people enter the labour force it increases the number of people seeking employment, by definition this means UE rate increases as they are contented as unemployed until they find employment.

Question 5

AD factors

Answer 5

• Changes in disposable income
• Changes in consumer confidence
• Changes in business confidence
• Interest rates
• Growth in population
• Changes to company tax rates

Question 5

AS

Answer 5

Labour productivity growth (weak in Aust)
Wages and the cost of labour (high in Aust)
The cost of oil
Ageing population and labour shortages
Climate change and severe weather events
Company tax rates
Cost of credit (interest rates)
Infrastructure bottlenecks or shortages