VCE Economics Units 3 and 4 practice quiz quiz

A rightward shift of the whole demand curve for petrol, increasing demand at every price level

A leftward shift of the whole demand curve for petrol, decreasing demand at every price level

A movement along the demand curve for petrol (lower quantity demanded)

A movement along the supply curve for petrol to a higher quantity supplied at the new price

4.0, so demand is elastic

0.25, so demand is elastic

1.0, so demand is unit elastic

0.25, so demand is inelastic

National defence

A place in a public hospital

A Commonwealth Supported university place

A subsidised childcare place

Producers earn higher profits than the socially optimal level of output would actually allow them to earn

There is an additional cost imposed on third parties not in the transaction

Demand exceeds supply at the current market price, creating a persistent shortage of the good

The good is non-excludable, so non-paying consumers cannot be prevented from using it freely

Zero unemployment, meaning literally every person in the labour force is in a paid job

An unemployment rate held below 2 percent, with only a tiny number of people out of work

Unemployment at or near the NAIRU, around 4.0 to 4.5 percent

Everyone of working age in a paid job, including those not currently in the labour force

The exchange rate

The level of government spending

The rate of income tax

The cash rate

The automatic stabiliser channel

The interest rate channel, which works through the cost of borrowing

The asset price channel, working through share and housing prices

The exchange rate channel, operating through the value of the dollar

A rising structural deficit that stimulates aggregate demand

A rising structural surplus that dampens aggregate demand

An unchanged structural balance

Any year in which the Budget records a deficit

A cut to the cash rate by the RBA to encourage households and businesses to borrow and spend more

Increased government cash handouts paid directly to households to lift their disposable income and spending

Investment in training and education to raise workforce productivity

A temporary rise in the GST designed to dampen consumer spending and aggregate demand in the short run

Higher unemployment always coincides with higher inflation

Inflation and unemployment are unrelated

Inflation rises one-for-one with the cash rate

Lower unemployment tends to coincide with higher inflation

A flow: Budget revenue minus expenditure in a given year

The cumulative stock of all past deficits and surpluses

The total value of Australian Government Securities on issue

The Reserve Bank's holdings of government bonds

It removes all of the implementation and impact time lags that normally affect macroeconomic policy

It allows both levers to push aggregate demand in the same direction toward the goal

It guarantees that the economy can achieve both zero unemployment and zero inflation at the same time

It transfers full responsibility for managing inflation away from the RBA and over to the Treasury instead