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Kiss Keep It Simple Stupid The cash rate is that rate of interest that applies to the short term money market. Think of it in this rather crude way: You are a dodgy loan shark and you lend other school students money so they can buy two pies at lunch time instead of one (may be a cause...

great answer above conspirocy the above was excellent! I hope you are either doing, or planning to do, a BEc. Laterz

santaslayer is correct PP stands for 'production possibility' You will bump into the concept of the 'production possibility' curve at some stage. Basically it describes an economy's maximum level of output given a certain amount of resources. Economic growth could be described as an...

Elasticity of demand Hi there Kiwi The price elasticity of demand is basically the sensitivity of quantity demanded due to changes in price (ie: how much does an increase in price effect the quantity demanded). What you are looking for in the total outlay method is infact total revenue...

The KISS method The good old KISS method got me through HSC economics: Keep It Simple Stupid The following structure can be applied to any issue, I will use price stability (inflation) to illustrate. What is it? (Inflation is defined as an increase in.....) How is it measured? (the...

Yes, it is a basic supply and demand diagram. The RBA acts to shift the Money Supply Curve using its Domestic Market Operations. A tightening of monetary policy implies a decrease in money supply and vice versa. The price of money (y-axis) is the cash rate! Another thing, money supply is...

In regards to microeconomic reform, what you are looking at is the typical firm (the supply side). Microeconomic reform is the quest to increase technical and dynamic efficiency- look for a long run average total cost curve for the typical firm. Achieving technical efficiency is represented by...

This is not correct. What you need to look at is the change in the budget surplus from the first year to the second. If the surplus increases, or deficit decreases, this means that the budget in year 2 is contractionary. If the surplus decreases, or a deficit increases- the budget is...

This is not correct. What you need to look at is the change in the budget surplus from the first year to the second. If the surplus increases, or deficit decreases, this means that the budget in year 2 is contractionary. If the surplus decreases, or a deficit increases- the budget is...

This is not correct. What you need to look at is the change in the budget surplus from the first year to the second. If the surplus increases, or deficit decreases, this means that the budget in year 2 is contractionary. If the surplus decreases, or a deficit increases- the budget is...