Unemployment and Economic Indicators
What economic indicator measures the total value of goods and services produced in a country?
GDP
Which institution sets Australia’s monetary policy?
RBA
How many sectors are included in the circular flow model studied in your exam?
How many phases are in the economic cycle?
4
By how much did the RBA raise the cash rate in mid‑March 2026?
0.25% Points
Which film won Best Picture at the 2026 Oscars?
One Battle after Another
Which type of unemployment occurs due to changes in seasons and work availability?
Seasonal
What is the primary goal of fiscal policy?
Influencing the economy through government spending and taxation
Name the five sectors of the circular flow model.
Household, Business, Financial, Government and Overseas
What does the RBA target when adjusting the cash rate?
Inflation
What is the new cash rate after the March 2026 increase?
Who won the Best Actor award?
Michael B. Jordan for Sinners
Name the three major indicators used to assess the health of the Australian economy.
GDP, CPI, Unemployment Rate
Why does government intervene during high inflation?
stabilise prices and maintain living standards
What is the role of the financial sector in the circular flow?
Manage Savings and Investments
What happens to consumer spending when interest rates rise?
Decreases
Which major global event contributed to rising Australian fuel and energy costs?
War in Middle East
Who won the Best Actress award
Jessie Buckley for Hamnet
Which type of unemployment occurs when the economy slows during a downturn?
Cyclical
Give one example of a government tool used to reduce inflation
Increasing Taxes or Reducing Government Spending
What impact does increased taxation have on the circular flow of income?
Reduce household spending and slow economic activity
What is the ideal inflation range that RBA attempts to maintain?
2-3%
Why did the RBA argue it had to raise rates again in March 2026?
Inflation data remained too high
Which actor won Best Supporting Actor?
Sean Penn for One Battle
Explain how unemployment negatively affects national production.
fewer workers → lower output → reduced economic growth
Explain how increased government spending affects the circular flow of income.
more spending → higher business income → more employment → higher consumption
Explain the relationship between the household and business sectors.
Households supply labour and demand goods; businesses supply goods and demand labour.
How does a higher cash rate help reduce inflation?
higher borrowing costs → lower spending and investment → reduced price pressure?
What risk or outcome did RBA Governor Michele Bullock warn about if inflation is not controlled?
Which animated film won Best Animated Feature at the 2026 Oscars?
KPop Demon Hunters