Exam 9: Introduction to Macroeconomics

Consider the household sector. According to the circular flow model, firms:

How is the rate of unemployment measured in Australia?

Distinguish demand- pull and cost- push inflation.

During the global recession of 2008- 2009 Australia was the only country in the world which actually experienced negative growth.

GDP measures the value of intermediate goods; therefore some double counting occurs in its measurement.

The labour force is the:

Explain the costs associated with unanticipated inflation.

Demand- pull inflation is caused by people demanding high wages.

The term business cycle refers to the:

Will an increase in the rate of potential growth lead to an increase in the rate of actual growth?

Net saving is an injection into the circular flow of income model of the economy.

In May 2010 the Australian government announced plans to introduce a 40- percent tax on the 'super profits' of firms in the mining sector, while simultaneously making a slight reduction in the normal company tax level. What are the potential advantages and disadvantages of such a tax?

If the number of people employed is 120 000 and the labour force is 150 000, the unemployment rate is:

Discuss four of the major concerns of macroeconomics.

For each of the following, indicate if the person would be classified as employed, unemployed, or not in the labour force: (a) a 65- year- old man who left his job and is now helping his daughter in her business for 10 hours a week; (b) a 20- year- old undergraduate who is looking for a summer job; (c) a 30- year- old woman with a PhD in history who has not been able to find a teaching position and is driving a taxi for 30 hours a week; and (d) a 40- year- old coal miner who isn't working and has given up searching for a job.

Within the circular flow model, withdrawals comprise:

Between 2003 and 2013, annual inflation in Australia was normally:

In the circular flow diagram the net flow from households to the banking sector is:

The period in the business cycle from a peak to a trough is called:

While the magnitudes of the phases of the business cycle vary over time, the business cycle itself tends to be approximately the same time length for each cycle.