Macroeconomic Fundamentals Practice Questions:

a)Go to the Australian Bureau of Statistics website and find the latest (December 2019) figures for output. In particular, find the percentage change in Trend GDP from the September Quarter 2019 to December Quarter 2019; and the December Quarter 2018 to December Quarter 2019; and the percentage change in Seasonally Adjusted GDP over the same two periods. (2 marks)

b)Do the same for the December 2018 figures. (1 mark)

c)Explain whether, based on the GDP data and all else equal, you would prefer to be incumbent Government running for re-election this time last year or now. (2 marks)

d)Now find the ABS data for the Consumer Price Index, specifically report the figures for the December 2019 and December 2018 All Groups CPI and the Seasonally Adjusted CPI. (2 marks)

e)What are the categories that experienced the most significant price rises and falls? Discuss whether, given your usual consumption bundle, you were likely better or worse off in December 2019 compared to September 2019. (2 marks)

f)With COVID-19, there are talks about countries entering a period of recession. The article defines a technical recession as being two consecutive quarters of negative real GDP growth. What is the NBER (National Bureau of Economic Research) definition of a recession? (1 mark)