All else equal, permanently reduced competition in the goods market is likely to...

Select one:

a.Encourage higher levels of labour and capital productivity

b.Decrease the equilibrium markup

c.Increase the equilibrium markup

d.Lead to increased economic growth

Suppose the Reserve Bank of Australia (RBA) would like to increase the inflation rate. They will achieve this by...

Select one:

a.Announcing a higher target cash rate. The RBA will purchase bonds from banks to achieve the new target rate

b.Announcing a lower target cash rate. The RBA will sell bonds to banks to achieve the new target rate

c.Announcing a higher target cash rate. The RBA will sell bonds to banks to achieve the new target rate

d.Announcing a lower target cash rate. The RBA will purchase bonds from banks to achieve the new target rate

Which of the following would not be a source of economic growth?

Select one:

a.Technological innovation

b.Increased yields on financial investments

c.The accumulation of capital

d.Growth in labour productivity