Policies
What is a government budget?
A plan showing how money will be raised and spent
What does GDP measure?
The total value of goods and services produced.
What is an export?
A good or service sold overseas.
If a graph shows rising GDP, what does this indicate?
Economic growth
Australia’s largest trading partner is…
China
What is the main goal of monetary policy in Australia?
To control inflation and stabilise the economy.
Inflation is ....
General rise in prices over time.
Name one of Australia’s top exports.
Iron ore, coal, natural gas, education, agriculture
If unemployment rises, what usually happens to consumer spending?
It decreases
Name one other major trading partner.
Japan, USA, South Korea, India, UK, and New Zealand
Which institution sets the cash rate in Australia?
The Reserve Bank of Australia (RBA).
Name one type of unemployment
Cyclical, Seasonal, Structural, Frictional
Why does Australia import many manufactured goods?
They are cheaper to produce overseas.
What does a downward inflation trend show?
Prices rising more slowly.
Why does Australia trade with Asia-Pacific countries?
Proximity, demand for resources, strong economic ties.
What is 'fiscal policy'?
When the government increases spending or cuts taxes to boost the economy.
If GDP increases, what does this normally mean for the economy?
The economy is growing.
What is a trade surplus?
When exports are worth more than imports.
A graph shows imports rising faster than exports. What might this mean?
Australia could move toward a trade deficit.
What is “globalisation”?
Increased connection and trading between countries around the world.
Name two ways the Australian Government can reduce unemployment.
Increase spending (infrastructure jobs), reduce taxes, fund job programs, or support industries
What is the target inflation rate in Australia?
2–3% on average over time.
How does the value of the Australian dollar affect exports?
A low AUD makes exports cheaper and more competitive overseas
If graphs show strong GDP growth but high inflation, what problem might this suggest?
The economy is overheating; cost-of-living pressures.
Give one benefit of international trade for Australia.
More export income, access to cheaper goods, economic growth, jobs.