npThanks for your points always forget to mention the obvious -facepalm- :\
anymore questions I could have a go at?
those are the obvious ones. Others would include, loss of investor confidence which could trigger capital flight --> destabilising the economy. Also defaults on debt repayments --> lower the credit rating --> overseas lenders impose higher interest rates --> further increases servicing costs and makes it harder to borrow overseas funds for domestic investmentExplain the Consequences of net foreign liabilities on the Australian economy
1. High NFL = increased interest repayments and/or dividends = debit on NPY = worsening CAD
2. Unserviceable NFL or unsustainable CAD, as well as possible debt trap scenario = external instability
3. Also high CAD = constraint on economic growth and hence the other objectives
Is there anything else? Idk, are those the obvious ones or are there others?
Okay, everything you said is relevant, it's just finding shorter ways to explain things or cutting down on multiple ideas. You could talk about any of these in your essays though. I'll just edit what you've said:those are the obvious ones. Others would include, loss of investor confidence which could trigger capital flight --> destabilising the economy. Also defaults on debt repayments --> lower the credit rating --> overseas lenders impose higher interest rates --> further increases servicing costs and makes it harder to borrow overseas funds for domestic investment
Evaluate the effectiveness of macroeconomic policies and labour market reforms in reducing Australia's rate of unemployment.
Macro:
MP: can undertake expansionary stance -- lower "r" -- cheaper to borrow -- increases disposable Y levels + business loans --> more consumption +investment -- more AD -- increased derived demand for labour and therefore lower UE.
Effectiveness: more effective at slowing the economy than stimulating it to encourage employment. therefore not the most effective policy tool in reducing Aust. UE
FP: expansionary stance -- more G, less T -- greater disposable incomes -- more AD and demand for labour -- less UE.
Also LT fiscal spending in infrastructure projects in ports, telecommunications, railways -- increases demand for labour. Also increases the future efficiency of X delivery, increasing International competitiveness and future demand for labour
Also recently incentives to hire LT unemployed by granting subsidies to employers
Effectivessness: more effective at stimulating the economy and encouraging employment -- important policy tool in lowering UE
However macro policies mainly address cyclical UE and effectiveness in lowering UE is limited by the NAIRU - supply constraint of labour. therefore LM reforms play important role in reducing NAIRU and long term UE rate
1) Flexibility and efficiency of the labour market -- decentralised system -- wage rises linked to productivity -- less pressure on wages -- cheaper to hire labour -- less UE
Also less union power and less stringent unfair dismissal laws makes labour more attractive resource. However this involves a trade-off in worker rights and is politically unpopular eg. Howard Workchoices
2) increasing efficiency of employment finding agencies eg. Job Network -- lower time lags associated with finding new work (frictional UE) and prevent substantial loss of skills which could make labour less employable
3) Increased funding in education and training -- build up skills of workforce -- more employable esp. in Aust. service based economy.
However as skills increase, wages increase -- labour may outprice itself or move to locations with lower marginal income tax rates -- brain drain
4) tax incentives -- eg. increasing the lower income Earner's tax offset -- increases motivation to work and participation rate -- leading to fall in UE in medium - long term
5) Mutual obligation schemes eg. work for the dole. allows welfare workers to retain job skills -- making them more employable in the medium term
However individuals may feel stigmatised in the workforce and hence become reliant on welfare payments
Wow. yep. that is way too long for a 5 marker S: what would you say is irrelevant?
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I'll have a shot at this.Describe the factors affecting Aust. TOT and the impact of an improvement in the TOT on the BOP. (4marks)
With the impact of TOT on BOP, divide it into its componentsI'll have a shot at this.
There are a number of factors that could influence Australia's TOT. The value of the AUD, for example, plays a key role in determining the value of both imports and exports, both of which affect the TOT. An appreciation for example, would make make import prices drop whilst export prices would rise and vice versa. The global and domestic economic conditions can also influence the supply and demand of goods and services in a way that can influence export and import prices. Periods of strong economic growth domestically, for example are usually characterised by increased demand for imports which may lead to a detrioration of the TOT. Changes in the TOT caused by these or any other factor can also affect the volume of trade, hence leading to an improvement or deterioration in the BOP...(not quite sure how to link this)
Here's another question: Explain the role of two international organisations in promoting globalisation (sorry if this has been asked before I'm a late arrival)
I think I'll have a go at this, but don't shout at me if I'm wrong...I have problems trying to think of what to say for all the productivity questions
eg. Explain how increased productivity achieves EG. (4 marks) <-- past paper questions
I don't know if I really don't know the linkages involved or.. they expect us to waffle on about efficiency and competition for the whole 4 marks?
Would be great if someone could clarify this. thankyou !
Also, I think they would want definitions of Productivity and Economic growth.I think I'll have a go at this, but don't shout at me if I'm wrong...
When you talk about productivity, I'm guessing you'll relate it to AS and how AS will influence EG.
So when you get more productive, you are able to produce more goods with relatively less cost of production. This allows you to experience EG without the worry of inflation as opposed to increasing AD.
I'm guessing to get the 4 marks, they'll like you to draw out a AD/AS curve as well, to show you got a good knowledge of what's it about and link it to your answer
Sorry if I'm wrong or missing something...
Yeah definititely, I think that'll get you a mark, then I guess 2 marks on explaining and a mark on the AD/AS curve? Possibly...Also, I think they would want definitions of Productivity and Economic growth.
You don't need a graph or whatever for short answers. You can use it to help you explain what you're talking about (e.g. if you wanted to talk about 'through a shift...' etc.) but I don't think you'd get a mark on a graph aloneI think I'll have a go at this, but don't shout at me if I'm wrong...
When you talk about productivity, I'm guessing you'll relate it to AS and how AS will influence EG.
So when you get more productive, you are able to produce more goods with relatively less cost of production. This allows you to experience EG without the worry of inflation as opposed to increasing AD.
I'm guessing to get the 4 marks, they'll like you to draw out a AD/AS curve as well, to show you got a good knowledge of what's it about and link it to your answer
Sorry if I'm wrong or missing something...