Starting from long-run equilibrium, a large increase in government purchases will result in a  _____ gap in the short run and ____ inflation and ____ output in the long run.

If the aggregate demand curve in an economy is Y=20 000-20 000p, current inflation (p) equals 0.06 (6%), and potential output (Y*) equals 19 200, then, in the short run, equilibrium output equals ____ and, in the long run, the inflation rate equals ___ %.

Australian donations to nations affected by the tsunami of December 2004 are classified in the Australian balance of payments statistics as a:

Use the figure that follows to answer the question.

The most important sources of economic growth include all of the following EXCEPT:

An Australian-made PC costs $2400 and a similar Japanese-made PC costs ¥242 000. If the nominal

For a standard Cobb Douglas production function which of the following is true:

Australia is a small open economy and currently experiences trade deficit. Assume that the Australian government decides to reduce spending and in doing so it reduces the size of its budget deficit. This is likely to lead to:

where

r is the real cash rate (interest rate, policy rate set by the Central Bank of country D), Y is output, Y*

is potential output and π is the rate of inflation.