the different models/flows
what are the 5 things in the 5-sector model?
household sector
firms sector
financial sector
government sector
overseas sector
What are the 6 different kinds of unemployment?
Frictional
Structural
Seasonal
Cyclical
Hidden
Underemployment
What is the fiscal policy?
Fiscal Policy is the means by which a government adjusts its spending levels and tax rates to influence a nation's economy and achieve the economic goals.
What are the 4 factors of economic growth?
Land, Capital, Labor, entrepreneurship
What was the wealth of Australia in 2013? (needs to be close)
$6.3 trillion
what are the 4 kinds of income from the firm sector to the household sector?
Income (Y) = wages, rent, interest, profit
explain 2 kinds of unemployment.
Frictional
Frictional unemployment occurs when people move between jobs in the labor market + when people transition into and out of the labor force.
Structural
This kind of unemployment occurs when there is a mismatch between the jobs that are available and the people looking for work. Mismatch occurs when people don't have the right skills required or the jobs are a long way from jobseekers.
Seasonal
Occurs at different points over the year because of seasonal patterns.
Cyclical
Occur with changes in economic activity over the business cycle
Hidden
Occurs when people are not counted as unemployed in the formal ABS labor market statistics, but would probably work if they had the chance.
Underemployment
Occurs when people are employed but would like and are available to work for hours.
What is the monetary policy?
Monetary policy is done by the Reserve bank of Australia and involves setting the castrate target. The cash rate influences other interest rates in the economy affected the behavior of borrowers and lenders, economic activity, and ultimately the rate of inflation.
What is economic growth and how is it measured?
Economic growth is defined as the increase in the market value of the goods and services produced by an economy over time. It is measured as the percentage rate of increase in the real gross domestic product (GDP). To determine economic growth, the GDP is compared to the population, also known as the per capita income.
Who is the richest person in Australia?
what are the 3 kinds of leakages and 3 kinds of injections and what is called when leakages = injections.
3 Leakages - Savings, Taxation, Imports
3 Injections - Government Expenditure, Investments, Export
When leakages = injections its called Equiliburm.
what are the 3 groups considered in the Labour Force?
Unemployed
Employed Part-time
Employed full time
What is a surplus and deficit?
DEFICIT: G>T (government spending>tax)
SURPLUS: T>G (tax>government spending)
Who benefits from economic growth?
The benefits of economic growth include. Higher average incomes. Economic growth enables consumers to consume more goods and services and enjoy better standards of living.
What is the gender pay gap in Australia?
13.4%
identify and explain the 5 things in the Business Cycle
BOOM - a period of high economic growth
EXPANSION - increasing economic growth
RECESSION - two consecutive quarters of negative economic growth (6 months); relatively mild contraction in economic activity compared to depression
CONTRACTION - declining economic growth
DEPRESSION - severe contraction in level of economic activity
Where is the largest unemployment in Australia and why?
South Australia - geographical location, fewer job opportunities, less job support, fewer general jobs, inadequate education, lack of productivity, education is giving skills needed to be in the labor force
what are the 2 different stances from the fiscal policy?
Expansionary: fiscal policy (expanding the economy to reduce unemployment) --> Larger budget deficit or smaller surplus than the previous year
Contractionary: Fiscal Policy (contracting the economy to avoid inflation) --> Smaller budget deficit or larger surplus than the previous year
What are the consequences of economic growth on the environment
Increased economic growth will lead to increased output and consumption. This causes an increase in pollution. Increased pollution from economic growth will cause health problems such as asthma and therefore will reduce the quality of life.
Choose one state of Australia and guess the average salary (needs to be close)
Tasmania: $79,846
SouthAustralia:$82,279
Queensland: $88,317
Victoria: $91,208
Northern Territory: $92,138
New South Wales: $93,236
Western Australia: $98,420
Capital Territory: $99,164
what happened to the economy in 2020?
We went into a recession-> the economy declined, unemployment & underemployment increased, Cash rate decreased by 3 times, 'free money' from banks when asking for a loan etc.
explain the affects of underemployment on young people?
Being unemployed for a long period of time in youth has been correlated to decreased happiness, job satisfaction, and other mental health issues. Unemployed youth also report more isolation from their community. Youth who are neither working nor studying do not have the opportunity to learn and improve their skills.
What will a decrease in the cash rate cause for households and businesses and then the economy?
decrease in interest rates -> household and business borrowing would increase -> increase consumption + investment (lower loan repayment) -> increase in economic growth
How can we promote economic growth
To increase economic growth
How many people are homeless in australia?
116,000 people