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10 Jan
2020

52872 – Principles of EconomicsSummer A 2019/2020Short-answer | NO PLAGIARISM

Principles of EconomicsSummer A 2019/2020Short-answer Assignment (20% of final mark)Question 1With reference to the following diagram (numbers are in billions):(a) If real GDP were initially $200, what would tend to happen to consumption expenditure and why?(b) If real GDP were initially $900, what would tend to happen to consumption expenditure and why?(c) According to Keynesian theory, if real GDP were $500 and government expenditure increased by $80, what would be the new real GDP?Question 2On September 19, 2019, The Sydney Morning Herald reported: “Unemployment lifts to 12-month high as full-time jobs fall”. Explain why, as is reported in the article, the Reserve Bank of Australia would be interested in the national unemployment rate?https://www.rba.gov.au/publications/smp/2019/may/economic-outlook.html

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