correct? It improves incentives and lowers time and other costs for suppliers of goods and services. It reduces bottlenecks that can restrict the growth of businesses. It can strengthen business profitability and competitiveness. It involves spending on health and schools. Question 19 Which statement about recent mixture of aggregate demand and aggregate supply policies Australia’s is least correct? Aggregate supply policies are best when used to lower natural unemployment, whereas aggregate demand polices are most effective in helping to lower cyclical unemployment. Aggregate supply policies are best when used to cut the size of cyclical unemployment, whereas aggregate demand polices are more effective in helping to make local producers more competitive and lower structural unemployment. Aggregate supply policies are best when used to increase productive potential and Australia’s long-term or sustainable rate of economic growth, whereas aggregate demand polices are effective in helping to ensure that our productive capacity is not wasted. Aggregate supply policies are best when used to lower cost inflation, whereas aggregate demand polices are effective in helping to lower inflation caused by excess expenditure. Question 20 Which statement about recent mixture of aggregate demand and aggregate supply policies Australia’s is least correct? Infrastructure outlays in the budget include G2 and impact on the level of aggregate demand, as well as affecting the productive capacity nation’s Reductions in marginal rates of personal income tax may help increase incentives to participate in the labour force and grow productive capacity, as well as lift levels of household consumption and AD. Welfare outlays in the budget can impact on the level of consumption spending, as well as the participation rate and level of productive capacity. Australia’s A rise in the rate of the GST from 10 to 15 per cent would be likely to affect the level of AS
correct? It improves incentives and lowers time and other costs for suppliers of goods and services. It reduces bottlenecks that can restrict the growth of businesses. It can strengthen business profitability and competitiveness. It involves spending on health and schools. Question 19 Which statement about Australia’s recent mixture of aggregate demand and aggregate supply policies is least correct? Aggregate supply policies are best when used to lower natural unemployment, whereas aggregate demand polices are most effective in helping to lower cyclical unemployment. Aggregate supply policies are best when used to cut the size of cyclical unemployment, whereas aggregate demand polices are more effective in helping to make local producers more competitive and lower structural unemployment. Aggregate supply policies are best when used to increase Australia’s productive potential and long-term or sustainable rate of economic growth, whereas aggregate demand polices are effective in helping to ensure that our productive capacity is not wasted. Aggregate supply policies are best when used to lower cost inflation, whereas aggregate demand polices are effective in helping to lower inflation caused by excess expenditure. Question 20 Which statement about Australia’s recent mixture of aggregate demand and aggregate supply policies is least correct? Infrastructure outlays in the budget include G2 and impact on the level of aggregate demand, as well as affecting the nation’s productive capacity Reductions in marginal rates of personal income tax may help increase incentives to participate in the labour force and grow productive capacity, as well as lift levels of household consumption and AD. Welfare outlays in the budget can impact on the level of consumption spending, as well as the participation rate and Australia’s level of productive capacity. A rise in the rate of the GST from 10 to 15 per cent would be likely to affect the level of AS
6.-Strengths-and-weaknesses-of-AS-policy.docx