Living Standards

What is the Australian Government's Economic Performance Goal for inflation

• Low levels of inflation - 3 - 4% Consumer Price index per year

• Low levels of inflation - 2- 3% Consumer Price index per year

• Low levels of inflation - 4 - 5% Consumer Price index per yea

What is the Government's Economic Performance Goal regarding economic growth?

• •strong and sustainable economic growth: a 2 - 3-per-cent increase in GDP per year

• •strong and sustainable economic growth: a 3-to-4-per-cent increase in GDP per year

• •strong and sustainable economic growth: a 4-5 per-cent increase in GDP per year

What is the goal for full employment? (unemployment rate of ....)

• 3 - 4%

• 2 - 3%

• 4.5%

One of the government's economic performance goals is ------- in the distribution of income and wealth.

One of the government's economic performance goals is external stability through a reduced

Why might economic growth not improve living standards? Select three that apply

• Inflation impacts income distribution

• GDP does not provide information about who receives the increased number of goods and services

• GDP does not consider the impact of production on the environment.

• It's not the role of governments to be concerned about living standards.

Inflation impacts living standards because ------ -------- go up causing ------ -------- repayments, leading to ------- spending and increased financial stress.

Inflation causes producers to raise prices to cover costs which (select three that apply)

• reduces their ability to compete internationally

• reduces profits

• slows business expansion and force closures

• increases profits

Some individuals become poorer and living standards fall with inflation because ------ do not keep up with rising prices and ------- -------- --------

Others get richer and enjoy better living standards because their ---- ---- as ------- rates rise and ----- returns rise