Question

QUESTION 9 As of June 2019, Australia has a total population of 25.2m and 20.6m are 15+ years old. The unemployed population is 0.7m and the employed population is 12.3m. Using these figures, what is the working age population based on the definition in the lochure note? 25.2m 13.6m 19.5m 20.6m C 120m QUESTION 10 An economy is initially at its long run equilibrium. In reducing the country's carbon footprint, the government now spends a lot of money on tree plantation around urban areas In the short run the aggregate demand curve shifts right. In the long run the price level increases output returns to its potential and real wages increase In the short run the aggregate demand curve shifts left in the long run, the price level increases, output returns to its potential and real wages increase in the short run the aggregate demand curve shifts left in the long run, the price level decreases, output returns to its potential and real wages decrease the aggregate demand curve shifts left, the price level decreases, output returns to its potential, and real wages do not change. in the short run, the aggregate demand curve shifts right in the long run the price level increases, output returns to its potential, and real wages do not change,

Answer 1

Answer 9

Working age population is the people who are eligible to work. Since, only 20.5m people are 15+ years old, working age population is 20.5m as only people above 15 years of age are eligible to work. However, labor force includes people who are eligible as well as willing to work at given wage rate.

Answer 10

In short run, the aggregate demand curve will shift right,, price level and output will increase. While in long run people will adjust their expectations because price level has increased workers will demand for higher nominal wages so price level will increase, output will returns to its potential and real wages will remain unchanged.