1. Outline the relationship between economic growth (GDP), aggregate demand (AD), inflation and unemployment
2. What causes AD to increase in the economy?
3. What causes inflation in our economy? Explain using detailed diagrams
4. What is the difference between nominal and real GDP?
5. What is the inflation target set by the RBA?
6. How does the business cycle help us understand the health of our economy?
7. What is the difference between inflation and deflation?
8. If aggregate supply (AS) decreases in the economy, what happens to the price level (inflation), real GDP and unemployment? Draw a diagram to illustrate this
9. If AD increases in the economy, what happens to the price level (inflation), real GDP and unemployment? Draw a diagram to illustrate this
10. What effect does consumer and business confidence have on AD and real GDP?
11. What effect does an appreciating $A have on AD and real GDP?
12. Who are the "winners" in a time of higher than expected inflation?
13. There will never be full employment in the Australian economy. Do you agree? Explain your answer
14. What is meant by cyclical unemployment? Do you think this is the most serious type of unemployment?
15. Explain the four (4) different types of unemployment