General Principles
A definition of macroeconomics.
What is "the study of the overall performance and structure of an economy, focusing on aggregates like inflation, GDP, and employment?"
The purpose of the Australian Federal Budget.
What process outline the government's revenue and expenditure for the upcoming financial year, manages economic growth, and addresses social, economic, and environmental challenges?
The purpose of monetary policy.
What economic tool helps manage the economy's overall level of activity, to control inflation, and influence interest rates to (INDIRECTLY) achieve stable growth and employment?
Explain why Australia "floated" the exchange rate in the 1970s.
What happened when we: had a less conservation government more open to globalisation and international trading, when he decided to allow the exchange rate to reflect market forces of supply and demand, and wanted to prevent the need for government intervention associated with a "fixed exchanged rate"?
This Disney movie features iconic songs like “Circle of Life” and “Hakuna Matata.”
What is the Lion King?
These two factors are the primary drivers of price changes in a competitive market.
What is the principle of "Supply and Demand"?
Where Federal Budget expenditure is sourced from.
What is tax revenue (such as income tax, corporate tax, and GST), non-tax revenue (such as dividends from government-owned businesses), and fines to the public?
Average inflation "target" percentage, in Australia.
2-3% per annum (year)?
Describe "deregulation".
What is the term that is particularly relevant to financial institutions and currencies, which allows government restrictions and controls to be "removed" or reduced, with the intention of increasing competition and efficiency?
This sci-fi franchise introduced the phrase "Live long and prosper" and featured the Vulcan salute.
What is Star Trek?
Three important goals which form the basis of macroeconomic objectives.
What is Economic growth? Increasing the production of goods and services (GDP)
What is Full employment? Maximizing job availability.
What is Price stability? Keeping inflation low and stable.
Three types of Australian taxes, and their functions.
What are income tax (to fund public services), goods and services tax (GST) (to collect "passive" revenue from consumables), and Medicare levy (to provide funds to public health facilities)?
Reasoning behind Australia's inflation target percentage.
How do we maintain price stability and ensure that inflation does not change significantly from the target range, in order to provide a more predictable environment for economic decision making, and promote more sustainable economic growth?
The Product Possibility Curve (PPC) aka "frontier".
What is shown by a graph which illustrates:
1. the maximum possible output combinations of two goods or services that an economy can produce, given its available resources
2. concepts like "opportunity cost" and "efficiency"?
The term to describe a collective of this type of animal is a "flamboyance".
What is a group of flamingos called?
A macroeconomic indicator that measures the total value of goods and services produced in an economy over a specific period.
What is Gross-Domestic-Product (GDP)?
"Automatic stabilisers" and their function.
What are economic strategies are INCREASED during recessions, or REDUCED during "economic booms" i.e. unemployment benefits (Centrelink), means-tested income taxes, aged-care pensions etc.
Explain the "transmission mechanism" of monetary policy.
The process through which changes in monetary policy, such as adjustments in the official cash rate by the Reserve Bank of Australia (RBA), influence interest rates, borrowing, spending, demand and inflation?
Describe a possible effect of a microeconomic policy/reform on "EFFICIENCY".
Reforms could relate to: infrastructure, R/D, education, deregulation, labour force etc.
What is improved efficiency in the economy by reducing transport and logistics costs, enhancing connectivity, and facilitating faster and more reliable delivery of goods and services, which can lead to increased productivity and economic growth?
This hit song by Billie Eilish once won the Grammy for "Record of the Year" and has been used in an "Addams Family" remake, Umbrella Academy and an Iphone commercial.
Who wrote the hit song, "Bad Guy"?
All four phases of the business cycle, including possible impacts/ effects.
Expansion? Rising GDP, jobs, and profits.
Peak? High growth, possible inflation, rising costs.
Contraction? Falling GDP, higher unemployment, reduced demand.
Trough? Economic activity at its lowest, but recovery will eventually begin, as this entire process occurs in cycles.
This type of fiscal policy involves increased government spending or tax cuts aimed at boosting economic activity during an economic slowdown.
What is expansionary fiscal policy (designed to stimulate economic growth through increased government spending or tax cuts)?
Compare internal vs. external stability.
Internal ("inner") stability = low inflation, stable economic growth, low unemployment within the DOMESTIC economy (?)
External ("outside") stability = maintaining balance in the country's INTERNATIONAL financial position, such as managing the exchange rate and trade balance to prevent excessive deficits (?)
Describe a possible effect of a microeconomic policy/reform on "COMPETITIVENESS".
Reforms could relate to: infrastructure, R/D, education, deregulation, labour force etc.
What is a possible effect of a microeconomic reform, such as labour market deregulation or vocational training improvements, is increased competitiveness by enhancing worker skills, flexibility, and productivity, which can lead to higher employment levels and a more dynamic labour market?
The Australian author of "The Book Thief" and "The Messenger", which has become a beloved international bestseller.
Who is Markus Zusak?