Question: question 6 your friend is unhappy because his real wage...
- Your friend is unhappy because his real wage has decreased. Explain, using the concepts of real income, and nominal income, anticipated and unanticipated inflation rate, how is this possible. 2 Marks
- Assume a newspaper article stated, “The rise in the consumer price index of 2.2 percent has increased the cost of living of an average Australian by 2.2 percent”. Is this an accurate conclusion? Explain. 2 Marks
- People demand money for three purposes. Give an example of each. 1.5 Marks
- In the last two years, the reserve bank of Australia (RBA) has been conducting an expansionary monetary policy. Explain, using appropriate terminologies, how and why the RBA is using expansionary monetary policy. 2 Marks
- Explain how automatic stabilisers are working to slow down the recession in Australia. 2 Marks
- Explain three fiscal measures the federal government of Australia has taken to reduce the impact on unemployment from COVID 19. 1.5 Marks