17 - Exo - Realtive Real GDP Growth Flashcards
1
Q
AUS GDP against US GDP gap narrowing means
A
AUS GDP is falling relative to US GDP. Deflationary for Australian economy and inflationary for us economy. Sell AUS buy USD. Policy makers will react to inflate in AUS and deflate in US.
2
Q
AUS GDP against US GDP gap widening means
A
AUS GDP rising against US GDP. Inflationary for Australian economy and deflationary for us economy. Buy AUS sell USD. Policy makers will react to deflate in AUS and inflate in US.
