macro review test

which of these is not a supply side policy

• free trade

• increasing sales taxes

• industrial reform

• cutting top tax brackets

budget surplus is where

• the value of inflows of goods and services into Australia exceeds the value of outflows

• commonwealth expenditure exceeds revenue in a year

• commonwealth revenue exceeds expenditure in a year

A budget deficit is most likely to be implemented during the business cycle stage of

• when inflation is high  

• a recession

• a period of uncertain economic activity 

8.    If the government wishes to speed up the level of economic activity in the economy, the most appropriate monetary policy would be

• sell bonds

• publicly talk down inflation

• buy back bonds

    The policy most likely to help deal with cyclical unemployment would be

• expansionary fiscal policy

• regressive tax cuts to the rich

• expansionary monetary policy

• training and education programs

the impact of the multiplier effect of a government policy is most likely influenced

• overseas stock markets

• free trade agreements

• the marginal propensity to save

• Australians holidaying overseas

which is frictional unemployment

• mr inge retiring to do relief work sometimes

• mr inge working half time

• mr inge resigning to start work next year as prime minister economic advisor

 

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

• property speculators

• lenders with variable home loans

• holders of real scarce assets

• people on fixed incomes

Australia's current high inflation rate is primarily driven by ............................ factors

• demand pull

• cost push

• wage price leap frogging

• exogenous external

which is not a cause of demand pull inflation

• easy credit

• high business confidence

• appreciating exchange rate

• increased government infrastructure building at YF