Question

In the long-run, the aim of the Australian government is not just to recover from the...

In the long-run, the aim of the Australian government is not just to recover from the current recession and reduce the output gap to zero but also to increase the potential output of the economy. What economic policies do you advise to the Australian government to increase the potential output of the Australian economy in the long run. (300 words)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SOLUTION:-

* The output in then long run will increase when the labor force increase, the capital increases in the economy or the technology changes. My advice to the Australian government will be to:

  • Allow immigrants from th nations, especially those immigrants who are well qualified in their feild.
  • Allow easy flow of FDI in the nation that will increase the capital of the nation.
  • INvest in infrastructure, human capital and technology development in the nation.

* All these measures will help increase the outcome in the long run.

THANK YOU, If any quearies please leave your valuable comment on comment box.........

If possible please rate the answer as well..........

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The recession has meant that the actual output of the Australian economy is below the potential...
The recession has meant that the actual output of the Australian economy is below the potential output. The government has already introduced policy measures as you have identified above to boost aggregate demand (AD) and cover the output gap. However, from lecture 7 (Chapter 15) we can conclude that the road to economic recovery in Australia and mitigating the current output gap also requires policies to shift the short-run aggregate supply (SRAS) to the right. Discuss two of the distinct...
3. The recession has meant that the actual output of the Australian economy is below the...
3. The recession has meant that the actual output of the Australian economy is below the potential output. The government has already introduced policy measures as you have identified above to boost aggregate demand (AD) and cover the output gap. However, from lecture 7 (Chapter 15) we can conclude that the road to economic recovery in Australia and mitigating the current output gap also requires policies to shift the short-run aggregate supply (SRAS) to the right. Discuss two of the...
Please, draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an...
Please, draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is in both short run and long run equilibrium. Now, Suppose the price of oil (an input in the production of many goods) decreases. Can you please Show how this will affect the model starting from (1) above. What happens to GDP, The Price Level, and Potential Output? Is the economy in a recessionary gap or an inflationary gap? Also, Suppose that consumers...
The Australian government has recently announced a raft of fiscal expansionary/stimulus measures that will lead to...
The Australian government has recently announced a raft of fiscal expansionary/stimulus measures that will lead to a significant increase in the level of Australian government debt. Given the material presented in this course cover the pros and cons of government debt, we know that one view put forward is that ‘government debt is bad’. Do you agree or disagree with this statement? Briefly justify your answer.​​​ b. Consider the current economic conditions in Australia, where (eventhough official data is not...
An economy is in long-run macroeconomic equilibrium, with output at Yp, when the following aggregate demand...
An economy is in long-run macroeconomic equilibrium, with output at Yp, when the following aggregate demand shock occurs: The quantity of money in the economy declines and interest rates increase. What kind of gap (inflationary or recessionary) will the economy face after the shock, and what type of fiscal policies would help move the economy back to potential output? This will cause an inflationary gap; an expansionary policy should be used. This will cause a recessionary gap; an expansionary policy...
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants...
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants to increase its spending in order to stimulate the economy and avoid a recession. Assume that the crowding-out effect is always half as strong as the multiplier effect, and the MPC equals 0.9. According to Keynesian theory, how much additional government spending is needed to restore economic output? $10 billion $45 billion $50 billion $100 billion
Do you think our government should focus on the long run or the short run? Why...
Do you think our government should focus on the long run or the short run? Why do you feel that way? How do you think policies would change if the government focused only on the long run?
QUESTION 50 Government policy designed to stimulate the economy (move it back to long run equilibrium)...
QUESTION 50 Government policy designed to stimulate the economy (move it back to long run equilibrium) is called a. bogo policy b. expansionary policy c. recessionary policy d. contractionary policy 1 points    QUESTION 51 Two Part Question 1. What is a recessionary gap? (Be sure to include in your answer a discussion of actual and potential GDP) 2. What is an inflationary gap?  (Be sure to include in your answer a discussion of actual and potential GDP) 10 points   ...
If authorities believe that the natural rate of unemployment is lower than it actually is and...
If authorities believe that the natural rate of unemployment is lower than it actually is and pursue fiscal policies to move economic output to what they believe full employment to be, then which of the following is most likely to occur in the long run? a. An increase in the unemployment rate. b. A recession. c. A depression. d. An increase in the inflation rate Suppose an economy is producing at its potential output. The rate of unemployment corresponding to...
Imagine that you are the economic adviser of a country which experiences a high unemployment rate...
Imagine that you are the economic adviser of a country which experiences a high unemployment rate for a long time. The government (does not know the economic theory) and is willing to implement the following policies in order to reduce the unemployment rate. The first on is to reduce the minimum wage. The second one is to increase the unemployment benefits. Discuss the two policies and their effect (rely on the theory you have learnt) and ultimately advise the government...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT