B. Unemployment and Inflation and its causes for Australia.

1. Explain the likely cause of the change in the unemployment rate in 2020?

In your answer refer to both cyclical and non-cyclical types of unemployment;

1. Using the GDP Deflator identify and explain the likely cause of inflation / deflation for Australia in 2020? Include in your answer the contribution that export and import prices made to inflation / deflation in 2020.

Indicators

2017

2018

2019

2020

RGDP % change

2.54

2.65

1.73

-1.1

Inflation rate (%) - GDP deflator

3.55

2.2

3.1

0.5

Unemployment rate (%) - June Qtr

5.6

5.3

5.2

7.5

Natural rate of unemployment (%)*estimate

5

4.75

4.5

4.5