Question

In: Economics

This year, COVID-related disturbances have reduced Australia’s net migration to about zero, instead of about 150...

  1. This year, COVID-related disturbances have reduced Australia’s net migration to about zero, instead of about 150 000, and construction is forecast to remain low over the short term.  What principle of macroeconomics explains why a steady levelof net investment in the construction of new offices, houses, retail centres etc. depends significantly on the steady growthof population. [Hint: look at the lecture recording for 24 Sept.]  [Limit 5 words: 1 mark]

Answer:

  1. During recent decades, state how the slope and position of Australia’s Phillips Curve has changed  [Limit 20 words: 1 mark]

Answer:

  1. What happens to Australia’s measured productivity while largescale investment in new mines is happening?  Why? [Limit 20 words: 1 mark]


Answer:

  1. Over the last 30 years, does the quantity theory explain inflation over the trend in Australia? [Limit 20 words: 1 mark]

Answer:

  1. During Australia’s mining boom this century, did Australia regularly achieve a positive balance of trade?  If yes, state one year when it did not.  If no, state one year when it did. [Limit 20 words: 1 mark]

Answer:

  1. Why does it matter for the price of assets that the stock of existing assets is much greater than the flow of newly produced assets?   
    [Limit 20 words: 1 mark]

Answer:

Solutions

Expert Solution

I) The development business is totally subject to the flexibly of work. That is, the development business is influenced if the flexibly of development laborer is less. So when the net movement in Australia was zero during the Corona time frame, there was less flexibly of individuals for example development laborers because of which low net speculation likewise occurred and there was no work in the development sector.This development area is a capital ward area and because of absence of interest in the individuals due to Coronavirus, the absence of capital in the development area, ie the expectation to contribute the key, appears to be less because of which such occur.

2) Phillips bend indicating that lower compensation rate development in Australia . This is because of low expansion in Australia in as of late years. Low expansion implies somewhat lower interest in the economy. Which additionally connected with 2007-08 money related emergency just as lower populace development in australia and along these lines talented work gracefully at lower side.

3) there is a droop in profitability of coal and mining area in ongoing a very long time inverse to previously . Mains explanation for these are exhaustion of Insitu mineral assets in respects of coal ,oil and petroleum gas and so on Theres is a hole between capital use in this area and this expense of work and capital is higher than yield. That why it isn't remain that beneficial for financial specialist and consequently cost of creation expanding just as in power ,water area also.although enormous scope venture is going on yet because of cost of creation and speculation is higher and hence less productive than 1990s decade.

4) there is a low swelling pattern found in Australia lately , which isn't full characterize by this theory(slightly higher Bank rate) other immediate and roundabout factor controlling this.After GFC2008(global money related emergency) request actually low in the economy and low use of assets like labor, capital and so on and increment impact of new ,advancement, innovation like ola ,uber , online Sale airbnb and softish product costs also. These things prompted organizations lacking estimating force and low deal power for specialist.


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