That's strange, because they have fiscal and labour market question AGAIN in this year's independent trial as essay question.
Well independent also asks monetary every single year, so its not really a reliable indicator.
Alright lol, cuz I thought INDEPDENDENT and CSSA are good predictions for essays
I'll try doing this question, but please don't laugh if you think my responses are bad haha. Please give some feedback thanks.
Don't make predictions they get you nowhere in life
You should also mention how when the labour force expands (i.e. more unemployed + employed) that the labour force participation will increase and simultaneously, the unemployment rate will fall.
Well there is a change in the headline inflation, meaning there is some change in price of a volatile good. Judging from the options given and using common knowledge, oil prices are very volatile, due to its increased scarcity. So that gets rid of answers A and B. Now the inflation rate decreased, meaning the prices of the volatile good must of decreased. This can be caused by an increase in supply (Demand and supply curve). Hence answer is DMultiple Choice Question for you lot -- 2013 HSC - Q.18
Australia's headline annual (CPI) inflation rate has fallen from 3% to 2%, while the underlying annual inflation rate remains unchanged at 3%.
The divergence between these two measures of inflation is most likely due to:
A) A decrease in house prices
B) An increase in house prices
C) A decrease in world oil supply
D) An increase in world oil supply
An explanation would be beautiful
- A fluctuation in the exchange rate may infer the valuation effect, such that an economy's foreign debt and therefore current account deficit may be affected. An appreciation in the currency will evoke a decrease in debits from the net primary income account, such that the CAD is improved. This will increase investor confidence in Australia and may result in increased financial inflows and even eventually a higher credit rating.
As a list, you definitely wouldn't need any more info than that. I'd say it's pretty good. Only issue I have is with the first point. I'd explicitly say that an appreciation in the AUD would lead to a fall in relative debt repayments due to the higher rate of exchange; as opposed to it causing a "decrease in debits" - say why.
Any increases to the national minimum wage will only impact upon the labour market if the current minimum wage is above free market equilibrium wage rate. Hence, with a 2.5% increase to this national minimum wage by the FWC the supply of labour increases as the amount of workers encouraged to actively seek work increase. Conversely, this 'ripple effect' will lead to a decline in the demand for labour as firms see workers as being overly expensive. In turn this will increase the unemployment rate (Supply increase, demand falls). (Also helps alleviate poverty)
Seems good. I probably would've included something along the lines of 2.5% likely being in line with inflation, so the rise of the minimum wage could possibly result in nominal wage increases as opposed to real increases. In this way there is the possibility of not increasing the rate of unemployment.
Supply doesn't increase, supply expands (wording is key when talking about movements in the demand and supply curve). Another effect you can talk about is the decrease in income inequality and lower wage earners now earn more, however there is greater unemployment so im not sure if the two cancel each other out. Also an increase in cost-push inflation if the businesses decide to keep the same amount of people employed, but this is cancelled out if they fire the employees in order to maintain costs.
I've heard this terminology to be used for curves since its sliding up n down (contraction expansion), but say if it was labour market reforms that completely shift the curve to the right e.g.(Decentralized wage system). Would it be okay to use 'increase'. Sorry if this is confusing it's much easier to see the actual curve ^^
My bad, Ekman is right there, as usual. In the case of increasing the minimum wage, think of a demand and supply curve with the price rising. At that given price, supply would expand (rise up the curve) and demand would contract (slide down) -- I think. I believe it is similar to a floor price from Year 11 (where the price is locked above equilibrium), there is an excess of demand relative to supply.