I don’t really understand these questions well enough to answer them. Even just a basic explanation on the question and what’s needed would be much
I don’t really understand these questions well enough to answer them. Even just a basic explanation on the question and what’s needed would be much appreciated. I’m just very confused. you 1. Do you agree with the following statement? Carefully your answer. “Australian dollar is the legal tender in Australia as specified in section 36(1) of the Reserve Bank Act (1959). This means that regardless of what happens in the Australian economy in terms of economic growth, unemployment and inflation, Australian dollar will continue to perform effectively it’s functions as the medium of exchange, unit of account and the store of value.” 2. Explain how a financial intermediary can affect liquidity in a financial market and give at least one example. 3. Do you agree with the following statement? Carefully your answer. “During the early stages of the COVID-19 pandemic government-imposed measures have forced many businesses to produce below their potential level of output. This means that the Long Run Aggregate Supply Curve of the Australian economy has shifted to the left leading to an economic recession.” 4.In the aftermath of the Global Financial Crisis, the Australian government gave cash hand-outs of up to $900 to most taxpayers, as part of a policy aimed to stimulate economic growth. Explain the economic logic behind this policy in terms of the AD-AS model. (2.5 marks)
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