Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3 a. Tommy mentioned to you that Australia's economic growth did not change because the nominal gross domestic product (NGDP) in both 2016 and 2017
3 a. Tommy mentioned to you that "Australia's economic growth did not change because the nominal gross domestic product (NGDP) in both 2016 and 2017 was $1.5 million".Upon checking, you found that Australia's GDP implicit price deflator increased from 102 in 2016 to 104 in 2017. Calculate and explain if the statement by Tommy is factually accurate. (3marks) b. Ron has two (2) businesses. The economic contraction in 2020 decreased sales in his new car dealership but the sales in his fruit and vegetable shop remained steady. Explain, using business cycle terminology and graph(s), why are Ron's businesses affected differently. (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started