aggregate supply

Question 1

what is aggregate supply

Answer 1

aggregate supply is the total amount of goods and services (output) supplied by all sectors in an economy over a given period of time (usually a year)

Question 2

what is microeconomic reform

Answer 2

microeconomic reform is the act of using government policy in order to improve efficiency and the general function of specific sectors in oder to improve overall aggregate supply.

Question 3

which branch of microeconomic reform are we studying

Answer 3

trade liberalisation

Question 4

what is trade liberalisation

Answer 4

trade liberalisation is the removal of trade barriers such as tariffs and quotas on imports in order to encourage greater interaction between domestic and international markets and encourage greater competition

Question 5

What effect does budgetary policy have on aggregate supply

Answer 5

budgetary policy involves using part of the governments budget money to improve infrastructure through the removal of bottlenecks. It can also involve the increased funding of education as a way of making the workforce more equipped to deal with higher productivity

Question 6

what are bottlenecks

Answer 6

bottlenecks are places in which the flow of goods are forced to pass through areas that take an extended period to pass through or reduce the flow for a certain period of time. Examples include highly unionised ports or insufficient road and rail links

Question 7

What is immigration policy

Answer 7

immigration policy is the governments policy of controlling the flow of migrants and the composition of the migrant population to best support the growth in the economy

Question 8

what are the three categories of immigration

Answer 8

1) skilled immigration
2) family immigration
3) humanitarian/refugee immigration

Question 9

what is skilled immigration

Answer 9

skilled immigration is the addition of people from other countries with desirable skills to the Australian economy to support growth in jobs that there is an insufficient supply of

Question 10

what is general skills migration

Answer 10

general skills migration is the most common type of skilled migration and involves the government setting a range of categories for potential migrants to fill in order to qualify for migration

Question 11

what is employer sponsored migration

Answer 11

employer sponsored migration is the addition of migrants to specific businesses funded by the employer themselves as a means of filling skill gaps

Question 12

what is distinguished talent migration

Answer 12

distinguished talent migration is the migration of people with outstanding talent in skills that has worldwide recognition of being of a high standard

Question 13

what is business innovation and investment migration

Answer 13

business investment and innovation is the addition of people who have been extremely successful at business overseas and the government desires their skills

Question 14

What is CHAFTA

Answer 14

CHAFTA is the Chinese and Australia bilateral free trade agreement that increases our exports presence in Chinese markets by removing tariffs and increasing the rate of preferential entry of our exports

Question 15

what markets are affected by CHAFTA

Answer 15

the agriculture and horticulture market is the market most affected by CHAFTA as almost all (97.9%) of all tariffs will be removed on all AgHort exports.
The energy and resources market is also greatly affected as almost of their tariffs will be removed and preferential entry will be increased

Question 16

how does higher aggregate supply improve growth

Answer 16

a rise in aggregate supply can arise from increased perceptions of profitability from the business sector. This can cause an increased willingness to produce which flows through to gross domestic product and economic growth. Improved AS can also occur due to higher quality or quantity of resources available to the business sector which can push the production possibility frontier to the right and increase gross domestic product

Question 17

what is environmental policy

Answer 17

environmental policy is the governments policy of attempting to fight human caused climate change in order to preserve aggregate supply in the future

Question 18

how does the environment affect aggregate supply

Answer 18

the total amount of farmable land in Australia has a direct affect on the total amount we can supply as an economy. Ensuring the world doesn’t blow up down the track helps the government retain higher aggregate supply in the future

Question 19

what is the name of the governments current environmental policy

Answer 19

direct action plan

Question 20

what is the direct action plan

Answer 20

the direct action plan is the plan of the government to sponsor business to perform solution cutting upgrades and initiatives within their company. The government holds a reverse auction where business presents the way they are going to reduce pollution and then if this can be done for a greater reduction per dollar than any other company they will gain the grant to reduce these emissions

Question 21

what is productive capacity

Answer 21

a country’s productive capacity is the limit to the amount of output they can produce based on the current composition of the supply market and the access to resources