1 Suppose that an event in the news causes a large decrease in demand for strawberries. Explain how you think this would impact outcomes in the market for strawberries in the short run, and in the long run.

2 Assume that Australia is a small player in the global market for bananas. Compare the outcomes for all impacted parties from allowing imports of bananas to completely blocking all imports, and use this to explain which parties might lobby for the blocking of imports.

3 Imagine your colleague who has not studies economics asks you what itmeans when the Reserve Bank of Australia 'raises interest rates'. Explainwhat this means.

4 Suppose that the Australian economy is experiencing a higher than usual unemployment rate, and lower than usual growth rate. Discuss what type of fiscal policy you would advise the government to implement, and what other considerations would affect your advised response.