7) Fiscal policy primarily affects macroeconomic equilibrium in the economy by

Select one:

a.changing the Short-Run Aggregate Supply

b.all answers are correct

c.changing the Long-Run Aggregate Supply

d.changing the Aggregate Demand

8) During a recession, fiscal policy measures to bring the economy back to long-run equilibrium can include

Select one:

a.all answers are correct

b.temporary wage subsidy

c.an increase in the exchange rate

d.a decrease in interest rate

9) When Australian dollar depreciates in value relative to other currencies

Select one:

a.the short-run aggregate supply curve shifts to the left.

b.the aggregate demand curve shifts to the left.

c.the aggregate demand curve shifts to the right.

d.the long-run aggregate supply curve shifts to the right.

10) The current account of Canada will reflect the transaction involving

Select one:

a.all of the answers are correct

b.a Canadian citizen purchasing shares in Qantas.

c.An Australian citizen purchasing pharmaceutical products made in Canada.

d.an Australian citizen purchasing shares in the Royal Bank of Canada.

11) If John is a 'discouraged worker', then

Select one:

a.he is still considered to be part of the labour force

b.he is counted as unemployed

c.he is entitled to an income subsidy

d.he is considered to be out of the labour force

12) Because Australia is an open economy, when RBA pursues a contractionary monetary policy we expect

Select one:

a.Australian dollar to depreciate in value

b.Australian dollar to depreciate in value and next exports to increase

c.Australian dollar to appreciate in value and next exports to decrease

d.Australian dollar to appreciate in value and next exports to increase