1. a) Australia is experiencing its lowest unemployment rate in almost half a century. Compare the employment and unemployment rates in 2008, 2020 and 2024 (March b) However, according to Adam Creighton of the Guardian on 30 may 2017, "Real jobless rate well above 20.Discuss the basis for this assertion. reason for this claim. Explain why measuring hidden unemployment in an economy is challenging.
2. Consider an economy with the following characteristics:

Consumption function is C = 100 + 0.8YD;

Planned investment:I = 50;

Government expenditure:G = 60;

The tax function: T = 0.3Y;

Exports of the country:X = 20

The import function: M = 10 + 0.06Y.

Assume there are no transfer payments and no autonomous taxes.

All variables are in billions of dollars. C is consumption expenditure; Y_D is disposable income; Y is real GDP; G is government purchases of goods and services; T is taxes; I is planned investment expenditure; X is exports, and M is imports.

a. Write the aggregate expenditure function and find out the value of equilibrium level of income of the economy

b. What is the value of consumption expenditure of the economy?

c. Define the concept of multiplier. Calculate the size of the multiplier of the economy if government expenditure rises from $60 billion to $100 billion. Does the open economy multiplier is bigger than closed economy multiplier?