Agg Supply

Question 1

R&D Initiatives

Answer 1

Tax concessions for companies investing R & D to the covid vaccine. This allows for securing the health and safety of the AUS workforce, decreases the chance of lockdown, and opening of borders. Increase AS.

Question 2

Infrastructure Initiatives

Answer 2

$2 billion Melbourne Intermodal Terminal. Designed to decrease reliance on trucking freight along the east coast. Improves efficiency/speed with which goods and services can move through the economy leading to an increase of AS.

Question 3

Subsidies

Answer 3

JobKeeper Subsidy, 130 billion

Question 4

Tax Reform

Answer 4

Reduce corporate tax, 25% for companies with revenue of 50 million or less. More money is being retained, allowing for greater investment thus increasing productivity, leading to AS increase.

Question 5

AS Shift & Effect of EG

Answer 5

AS shift to the right. More goods and services are being provided and produced. Real GDP increases leading to an increase in EG.

Question 6

Impact of Decrease Migration due to Border Closures

Answer 6

Decrease Migration = Less Skilled Labour. Shortage in Labour Market = Higher demand, higher wages, higher cost of production, AS shift left.

Question 7

Education & Training

Answer 7

$1 billion dollar job training program, vocational training 34k individuals. Improve human capital, labour productivity, efficiency, AS increases as promoting more output.