Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

By how much does Australian GDP change in each of the following scenarios? Consider the direct effect only, please. Provide a brief explanation (2 points

By how much does Australian GDP change in each of the following scenarios? Consider the direct effect only, please. Provide a brief explanation (2 points each)

A) The ACT state government increases the subsidy to childcare centres by $1.3 million in total.

B) An Australian coffeeshop owner purchases a deluxe espresso machine from Italy worth $150,000.

C) A daytrader, who is an Australian citizen, sells his shares of Cochlear (an Australian company) for $100,000 on the New York stock exchange, which he purchased for $80,000 only two hours earlier. The broker on the stock exchange who intermediates the trade charges $700 (after conversion into Australian dollars) in commissions.

D) A family in country Victoria purchases the neighbouring farm for $600,000 and now directly consumes all the produce from the farm (worth $50,000) which it used to purchase from the neighbour (prior to the purchase of the farm).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Economics

Authors: Irvin B. Tucker

10th Edition

133711152X, 978-1337111522

More Books

Students also viewed these Economics questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago

Question

2. It is the results achieved that are important.

Answered: 1 week ago