Koala
What is the name of the organisation who oversees monetary policy?
Reserve Bank of Australia - RBA
What is the target rate for inflation in Australia?
2-3%
What does G stand for in the formula for GDP?
Government spending
Which key economic indicator has been difficult for developed economies to manage in the post-COVID era?
Inflation
What are the four components of aggregate expenditure?
C, I , G, NX
What are the two broad categories of monetary policy?
Conventional and unconventional
Interest rates impact which two components of aggregate expenditure?
Consumption and investment
The level of disposable income (Yd) is a key factor affecting which component of aggregate expenditure?
Consumption
What is on the y-axis of the AD/AS model?
Price level
What is the official name of the interest rate the RBA changes to control inflation in the economy?
Cash rate
Real GDP is adjusted to remove the effect of which economic indicator
Inflation
What are the 2 types of government spending?
Capital expenditure and current expenditure
Given an example of a non-durable good
Any good that typically lasts for less than three years
What are the three curves on the AD/AS model
SRAS
LRAS
AD
List three factors that influence net exports.
Dom business cycle
Overseas business cycle
Exchange rates
Terms of trade
Commodity prices
The natural unemployment rate consists of which two types of unemployment?
Frictional and structural unemployment
Quantitative easing is an example of which type of monetary policy?
Unconventional
What are the three policy objectives of the RBA?
1.Price stability
2.Full employment
3. Economic prosperity and welfare
What are the three key macroeconomic variables considered in the AD/AS model?
Inflation, unemployment and economic growth.
On the AD/AS model, how is macroeconomic long run equilibrium shown?
the AD, SRAS and LRAS curves intersect