1. Is it true to state that higher economic growth will always increase the economic welfare of a nation? Explain.

2. Explain the importance of "green GDP" and name two (2) countries that are using it.

3. Define "underemployment" and explain two ways a government can try to reduce it.

4. A politician stated, "If my party wins the election we will ensure that we achieve an unemployment rate of zero percent. Is this realistic? Explain.

5. Does the unemployment rate underestimate the true level of unemployment? Explain.

6. Your friend is very happy because his real wage has increased unexpectedly. Explain, using the concepts of real income, and nominal income, anticipated and unanticipated inflation rate, how is this possible.

7. Why does the Reserve Bank of Australia target underlying inflation and not the consumer price index? (Refer to the RBA Website)

8. Explain two (2) fiscal measures the federal government of Australia has taken to reduce the impact on unemployment from COVID-19.

9. Explain, using appropriate terminologies and a FLOW CHART, how expansionary monetary policy can affect the economy. (Draw the flow chart)

10. Explain two (2) fiscal measures the federal government of Australia has taken to reduce the impact on unemployment from COVID-19.