evaluating

Question 1

what are things to consider when evaluating against economic growth

Answer 1

components of GDP GDP=C+I+G+(X-M)
impact on employment
impact on wages
MER- productivity, efficiency, competitiveness

Question 2

what are things to consider when evaluating against full employment

Answer 2

level of unemployment
full time vs part time vs casual
underemployment
types of unemployment

Question 3

what are the types of unemployment

Answer 3

frictional- workers are between jobs
cyclical- unemployment due to recessions
structural- mismatch between worker skills and skills needed in market

Question 4

what are things to consider when evaluating against price stability

Answer 4

impact on purchasing power
MP response- cash rate
impact on consumption and investment
inflation and position on business cycle

Question 5

what are things to consider when evaluating against sustainable development

Answer 5

inter-temporal efficiency
impact on jobs, investment, infrastructure

Question 6

what are things to consider when evaluating against external balance

Answer 6

impact on balance of trade
impact on AUD
impact on level of foreign debt
foreign investment
terms of trade

Question 7

what are things to consider when evaluating against living standards

Answer 7

impact on consumers, jobs, wages, workers
cost of living
inter-temporal efficiency