The Australian dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per Australian dollar, will depreciate when:

With the amount of labour and other inputs employed held constant, the greater the amount of capital already in use, the less an additional unit of capital adds to production is a general principle of economics called:

Suppose in an economy PAE=5000+0.75Y-10 000r and the central bank acts according to the policy reaction function set out in the table.

Constant returns to scale refers to:

When the Reserve Bank responds to higher inflation by raising real interest rates, consumption and investment spending:

For a given nominal exchange rate and foreign price level, a decrease in the domestic price level _____ the real exchange rate.

Suppose the aggregate demand curve in an economy is Y=10 000-10 000p, current inflation (p) equals 0.06 (6%), and potential output (Y*) equals 9400. If, starting from long-run equilibrium, an inflation shock raises inflation to 0.07, in the short run, output will equal ____ and, in the long run, output will equal _____.

In Macroland, 500 000 of the 1 million people in the country are employed. Average labour productivity in Macroland is $20 000 per worker. Real GDP per person in Macroland totals:

The decomposition of an economy's growth experience into contributions from different factors of production and technology refers to:

If the aggregate demand curve in an economy is Y=20 000-20 000p, current inflation (p) equals 0.06 (6%), and potential output (Y*) equals 19 200, then, in the short run, equilibrium output equals ____ and, in the long run, the inflation rate equals ___ %.