macro objectives

The Consumer Price Index (CPI) measures

• changes in the price of all goods produced in the economy

• changes in the price of consumer durables

• changes in the price of all items consumed

• changes in the price of selected items representative of consumption expenditure

    If nominal interest rates are 5 % and the rate of inflation is 7% the real rate of interest is

• -2%   

• 19

• 7

• 5

Which of the following groups would benefit from a high rate of inflation in Australia?

• property speculators

•             pensioners

• minimum wage workers

• (d)         Savers

The major economic problem caused by unemployment is

• causes loss of votes for government

• level of job search allowances paid by the government

• loss of economic efficiency and wastage of resources

• higher crime rate

The participation rate will increase if

•      the retirement age is reduced from 60 to 55 years

• women are encouraged to enter the workforce

• better conditions increase full time opportunities for part-time work

• there is an increase in family allowance payments

An example of hidden unemployment is

• unemployed agricultural workers seeking work in other industries

• unemployed building industry persons made redundant due to insufficient workloads

• married women discouraged from re-entering the workforce due to poor job outlook

• the collapse of a local manufacturing firm due to tariff reductions and resultant job redundancies

       Unemployment caused by a general deficiency in aggregate demand is called

• frictional

• long term

• cyclical

• structural

An example of structural unemployment is the

• decision to stand down employees with redundant skills

• shutdown of a manufacturing plant due to a world recession

• decision by an employee to take a holiday before looking for a new job

• ecision by an employee to leave Australia to seek work overseas

Which of the following will be most useful in forecasting future economic events

• GDP

• UE

• monthly retail stats

• exchange rate

when leakages are much greater than injections into the circular flow model there will most likely be

• market disequilibrium

• recession

• inflationary pressure

• all of these responses