This essay discusses about a steady level of net investment. This year, COVID-related disturbances have reduced Australia’s net migration to about zero, instead of about 150 000, and construction is forecast to remain low over the short term.

steady level of net investment

Set Five: Miscellaneous (6 marks)

i)             This year, COVID-related disturbances have reduced Australia’s net migration to about zero, instead of about 150 000, and construction is forecast to remain low over the short term.  What principle of macroeconomics explains why a steady level of net investment in the construction of new offices, houses, retail centres etc. depends significantly on the steady growth of population.  [Hint: look at the lecture recording for 24 Sept.]  [Limit 5 words: 1 mark
Answer:

ii)            During recent decades, state how the slope and position of Australia’s Phillips Curve has changed  [Limit 20 words: 1 mark]

Answer:

Answer:

Set Seven (10 marks)

i)             A rise in planned inventories is a leading indicator of an expansion.

Indicate     T    F    #
Explanation: [Limit 40 words: 2 marks]

ii)            A rise in the unemployment rate is a concurrent indicator of a recession.

Indicate     T    F    #
Explanation: [Limit 40 words: 2 marks]

iii)           Published data show that during the previous quarter (3 months) employment has risen that demand-pull inflation is rising.  These indicators suggest that the growth of GDP is likely to increase in this or the next quarter.

Indicate     T    F    #
Explanation: [Limit 40 words: 2 marks]

iv)           A good leading indicator of changes in the rate of inflation during economic cycles is the change in the growth rate of the money supply.

Indicate     T    F    #
Explanation: [Limit 40 words: 2 marks]

v)

Here are EIGHT (8) key diagrams used in this course.  Pick the correct diagram or select the correct pair of diagrams to respond to each item below.

It is possible that any one diagram is the correct answer more than once.
It is possible that any one diagram is never the correct answer.
Firstly, Diagram 1

Secondly, Diagram 2

Thirdly, Diagram 3

Further, Diagram 4

Further, Diagram 5

In addition, Diagram 6

Moreover, Diagram 7

Diagram 8

i)             (4 marks) Suppose that monetary policy is tightened.

This is shown in Diagram____.

Monetary policy affects interest-sensitive expenditure. Select ONE leakages and injections diagram _____,   and explain why you selected one and not the other.
Explanation [Limit 60 words]: