Submission method options: Alternative submission method
Answer all four (4) questions. Maximum of 500 words for each question. Use diagrams where appropriate to enhance and explain your response. Provide supporting evidence and references where appropriate to justify your arguments.
Suppose the following table provides a national accounting date for the 'Greenland' economy.
|Expenditure category||Dollar Billions|
|Gross private domestic investment||450|
|Government Consumption expenditure||360|
|Government investment expenditure||120|
|Consumption of fixed capital||350|
|Household consumption expenditure||1100|
|Net foreign income paid overseas||50|
|Net transfers to foreigners||10|
(a). Using the expenditure approach, calculate :
(i). Greenland's GDP (gross domestic product) and NDP (net domestic product)
(ii). Greenland's GNI (gross national income and GDI (gross disposable income)
(b). "GDP does not represent peoples' well being". Do you agree with this statement, briefly outline the reasons?
(a). Briefly explain the four main types of unemployment. Which one of these four can better be used to explain the massive job losses that occurred due to Covid-19 health pandemic.
(b). It has been reported that the GDP growth of the Australian economy has declined massively due to Covid-19 leading to an unprecedented GDP gap. Explain the GDP gap using a Business Cycle graph (you do not need data to draw this graph).
(c). What causes the difference between 'Real income' and 'Nominal income'? Provide a worked-out example to explain the difference between these two concepts.
(a). The magnitude of the impact of a given change in the AD (aggregate demand) on P (price level) and the Real GDP depends on the shape of the AS (aggregate supply curve). Explain your answer using a graph (with AD and AS curves on the same graph).
(b). Using two separate graphs, briefly explain the difference between Demand-pull inflation and Cost-push inflation.
Use a graph to explain the impact of each of the following events on the Australian economy. Illustrate which curve (AD or AS) is impacted (that is whether it is a shift or a movement along the curve). Consider each of these events are not inter-related.
(a). Consumption and Investment drastically declined in the economy due to Covid-19.
(b). Recent droughts and bush fires caused massive destruction to farm/agricultural production.
(c). The world oil price has declined and it is expected to remain low over a longer period of time.
(d). Analysts predict a massive decline in Australian exports to China which is Australia's major trading partner.
This assessment task will assess the following learning outcome/s:
GRADUATE LEARNING OUTCOMES
This task also contributes to the assessment of the following CSU Graduate Learning Outcome/s:
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