1.

Gross Domestic Product does not include the value of intermediate goods that are used up in the production process because:

a. These goods are typically imported into Australia

b. None of the other options

c. This avoids double-counting the value of intermediate goods in the production process

d. This is consistent with the way that natural resources are treated .

5.

Consider a simple model where workers can be either employed or unemployed. Suppose the labour force is L= 300 million workers, the job separation rate is 4% per month and the job finding rate is 36% per month. Which of the following is true?

a. In steady state, fewer workers are losing their jobs than there are unemployed workers finding a job

b. In steady state, 108 million workers are employed

c. In steady state, 12 million workers are unemployed

d. None of the other options