If the Australian dollar increases in value relative to other​ currencies, how does this affect the aggregate demand​ curve, ceteris​ paribus? a. This will move the economy down along a stationary aggregate demand curve. b. This will shift the aggregate demand curve to the left. c. This will shift the aggregate demand curve to the right. d. This will move the economy up along a stationary aggregate demand curve.

Assume the economy is initially operating at the natural level of output. Which of the following events will initially cause a shift of the aggregate supply curve?Question 5Select one:a.an increase in the price targetb.an increase in government spendingc.a decrease in the money supplyd.an increase in taxese.None of the above.

Other things being equal, if the national income of our major international trading partners were to rise, our (Australia's): Group of answer choicesaggregate demand curve would shift to the right.short-run aggregate supply curve would shift to the left.short-run aggregate supply curve would shift to the right.aggregate demand curve would shift to the left.

If the Reserve Bank of Australia pursues expansionary monetary​ policy, ceteris​ paribus, aggregate demand​ will: a. rise by less than it otherwise would have and the price level will rise by less than it otherwise would have. b. fall by more than it otherwise would have and the price level will fall by more than it otherwise would have. c. fall by less than it otherwise would have and the price level will rise by less than it otherwise would have. d. rise by more than it otherwise would have and the price level will rise by more than it otherwise would have.

f the Australian dollar appreciates, the effect of this is likely to be that:Group of answer choicesexports will be more expensiveimport-competing domestic goods will be relatively cheaper‘imported disinflation’ may become a benefitimports will be more expensive‘imported inflation’ may become a problem

Consider a textbook situation in which Australia and the USA are experiencing similarly low rates of inflation. Then if the rate of inflation were to decrease significantly in USA, relative to the Australia, which of the following impacts would be expected to occur?Group of answer choicesAustralian demand for USA goods and services would increase.There should be a decrease in Australian demand for the US dollar.There would be a decrease in the supply of AUD in the FX markets.The prices of goods and services in USA would increase in USD terms. PreviousNext