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ECON1102-Macroeconomics 1 - T1/2025
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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 ___ %.
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 average labour productivity increases, real GDP per person:
Australian donations to nations affected by the tsunami of December 2004 are classified in the Australian balance of payments statistics as a:
The most important sources of economic growth include all of the following EXCEPT:
Use the figure that follows to answer the question. Based on the figure, if the official value of krone is fixed at $0.09 per krone, then the Norwegian krone is ____ and the international reserves of Norway will ______ krone per period.
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:
For a standard Cobb Douglas production function which of the following is true:
An Australian-made PC costs $2400 and a similar Japanese-made PC costs ¥242 000. If the nominal exchange rate is ¥105/$, which PC is more expensive and by how much (in percentage terms) ?
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.
According
to this Taylor rule, if the output of country D is at its potential level and inflation is 1%, what will
be the value of the real cash rate, r?