Slumping Iron Ore Prices Hit Australian Economy

The transcript discusses the disappointing economic performance in Australia, with GDP growth falling short of expectations and the dollar hitting a four-year low. Domestic challenges include declining iron ore shipments, soft spending, and rising unemployment. The Reserve Bank of Australia may consider easing monetary policy. The budget situation is worsening, with significant savings measures stalled and a widening deficit. Joe Hockey's absence from media discussions is noted.

What was the expected GDP growth for the third quarter?

• 0.7%

• 0.5%

• 1.0%

• 0.3%

What was the impact on the dollar following the GDP figures?

• It rose to a four-year high.

• It fell to a four-year low.

• It slightly increased.

• It remained stable.

What is one of the domestic challenges mentioned in the second section?

• High consumer spending

• Rising unemployment

• Increased iron ore shipments

• Companies investing heavily

What might the Reserve Bank of Australia consider due to rising unemployment?

• Increasing interest rates

• Increasing government spending

• Easing monetary policy

• Reducing taxes

What was the expected outcome of the mid-year economic update?

• A widening deficit

• A balanced budget

• A reduced deficit

• Increased government revenue