Employment & Unemployment
What is the definition of unemployment?
The percentage of people who are actively looking for work but cannot find a job.
What does RBA stand for?
Reserve Bank of Australia.
What happens to the economy when leakages (money leaving) are greater than injections (money entering)?
The economy contracts (shrinks).
What is the name of the government agency that tracks employment data in Australia?
The Australian Bureau of Statistics (ABS)
What happens to interest rates when inflation is too high?
The RBA raises interest rates to slow down spending.
What are the three types of leakages in the five-sector model?
Savings, Taxes, and Imports.
If unemployment is high, what might the government do to encourage job growth?
Increase government spending, lower taxes, or introduce job programs.
What is GDP, and why is it important?
Gross Domestic Product (GDP) is the total value of all goods and services produced in a country, used to measure economic growth.
What is an example of an injection into the economy?
Investment, Government Spending, or Exports.
What is underemployment, and how is it different from unemployment?
Underemployment refers to workers who have jobs but are not working as many hours as they would like or are overqualified for their current role.
Who sets monetary policy in Australia?
The Reserve Bank of Australia (RBA).
Mr. Baker just graduated from university but can’t find a job in his field. He takes a part-time job at a café while applying for full-time positions. What type of employment is this?
Underemployment (He has a job but is not working to his full skill level or preferred hours.)
What is the target inflation rate that the RBA aims to maintain when setting interest rates?
2-3% (The Reserve Bank of Australia aims to keep inflation within this range to ensure stable economic growth and avoid high inflation or deflation.)