q1.

Consider the following production chain. Gina Rinehart's mining company in Western Australia produces coal worth 20000 AUD in 2019 with no other purchased input. All of this output is bought by a Shanghai Steel, a Chinese firm, and using only coal as an intermediate good, it produces Steel worth 50000 AUD in 2020. All of the steel from Shanghai Steel is purchased by Holden Automobiles in Adelaide to make cars, using only imported steel as a purchased input. The total cars produced are 10 and the price in 20000 AUD in 2020. However, only 5 cars are sold in 2020. What is the contribution of this production chain to the Australian GDP in 2020?

Group of answer choices

200 000 AUD

100 000 AUD

270 000 AUD

70 000 AUD

170 000 AUD

q2.

An economy is described by the following equations:

C= 1000 +0.6(Y-T) consumption function

I^p= 1000 planned investment

G=500 government spending

NX = 100 net exports

T = 1000 taxes

What is the short-run equilibrium level of output if the potential output Y* = 5000?

Group of answer choices

2000+0.6Y

2.5

0.6

Zero

5000

q3.

If both nominal GDP and the general level of prices are falling, then:

Group of answer choices

real GDP is unaffected by change in price level

real GDP will fall if nominal GDP is falling faster than the general price level

insufficient information

real GDP will fall if nominal GDP is falling more slowly than the general price level

real GDP will rise if nominal GDP is falling faster than the general price level

q4.

Suppose the total expenditure for a market basket of goods in year 1 (the base year) is $150 billion. In year 2 the expenditure for the same market basket of goods is $200 billion. What is the CPI for the economy in year 2?

Group of answer choices

133

75

178

20

58

q5.

In the news, the claim is that the Australian economy is experiencing a contractionary output gap of 5 percent. If the Okun's law coefficient, =2, what is the unemployment gap (u-u*), where u is the unemployment rate and u* is the natural rate of unemployment:

Group of answer choices

-2%

-2.5%

3%

2.5%

-3%