Assume that the economy is closed (so imports and exports are equal to zero). Also assume that all government expenditure is for current consumption and not investment. Use information from the following table to calculate the value of (gross) investment in the economy in billions of dollars

The paradox of saving (thrift) states that:

If the economy is at point A which of the following statements is correct?

Consider the following partial balance of payments data for Australia (in $ million) in 2018.

Based on the information in the above table, Australia’s trade balance is _______, and the financial account balance is ________:

The following diagram show

the channel system of Cash Rate use by RBA. 

Suppose the cash rate is at the

policy target rate. 

In the below diagram, policy target rate equals i^T, IOR stands for Interest on Reserves, ES stands for Exchange Settlement funds.

The central bank knows that

there will be large inflow of funds to the government account at the end of

financial year due to payment of income tax from private sector. Assume that

before the change the supply curve for reserves is given by ES

1. 

2. 

3. 

Recall the AD-AS model you learned in this course.

Assume that at the end of 2023 the economy is in the long run equilibrium, depicted as follows:

Assume that in 2024 the exogenous component of consumption has declined. Assuming that no other change or policy takes place, which one of the following diagrams depicts the short run equilibrium after the exogenous change in consumption?

1. 

2. 

3. 

4. 

5. 

To answer this question, use the model of demand for money that you have learned in class.

The diagram below illustrates the relationship between demand for money and nominal interest rate (i).

Which diagram below shows what will happen to the money demand when there is an increase in price level (P)?

1. 

2. 

3. 

4. 

Assume the PAE 3-sector

model you learned in class. You are given the following information:

Given this information, the equilibrium output is given by Y1.

Suppose the exogenous component of taxes is reduced from 10 to 5.  After this change, the equilibrium output is given by Y2.

Calculate the change in equilibrium GDP, what is Y2-Y1?.

Recall the AD-AS model you learned in this course.

Assume that at the end of 2021 Country's X economy is in the long run equilibrium, depicted as follows:

Assume that in 2022 there is an increase in oil prices which led to an increase in prices across all industries in country X. 

Assuming that no other change or policy takes place, which one of the following diagrams depicts the short run equilibrium after the increase in oil prices?

1. 

2. 

3. 

4. 

5. 

A decrease in exports of $10 billion will lead to a fall in equilibrium GDP of: