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Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c04EconomicActivity_PrintPDF” — 2022/5/28 — 13:00 — page 86 — #86

FIGURE 4.38 Monthly changes in the level of Australian consumer confidence (measured by an index using a base of 100 points where the number of optimists equals the number of pessimists) 118.8

115

110

113.1

108.8 107.2

106.225

105

104.6419

104.0927

105.2999

104.2771 102.2016

120

100.8

100

95 Apr 2021

Jul 2021

Oct 2021

96.6

Jan 2022

Source: Trading Economics, Monthly changes in Australia’s consumer confidence, see https://tradingeconomics.com/australi a/consumer-confidence.

CO RR EC

Question 7 (4 marks)

a. Define the term, consumer confidence. (1 marks) b. Referring to graph statistics, describe the overall change in consumer confidence between November 2021 and March 2022. (1 mark) c. Explain whether consumer confidence is an aggregate demand or aggregate supply factor. (1 mark) d. Other things remaining constant, explain how you would expect the recent change in consumer confidence to affect each of the following? • level of economic activity and GDP • the unemployment rate and level of disposable income • the inflation rate. (3 marks)

Explain the ways in which the ABS’s Measures of Australia’s Progress provides a more complete picture of changes in living standards over time, than simply using changes in real GDP per head. (4 marks)

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Jacaranda Key Concepts in VCE Economics Units 1 & 2 Twelfth Edition

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Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

Articles inside

8.8 Review

8.7 The responses by economic agents to improve environmental sustainability

8.4 The reasons why environmental sustainability is of importance to Australia and globally

8.3 Measures of the environmental sustainability of economic activity

8.5 The economic factors influencing the extent of environmental sustainability

8.6 Different perspectives about the issue of environmental sustainability

8.2 Definition and general nature of environmental sustainability

8.1 Overview

7.8 Review

7.7 The Australian government’s response to address inequality in the distribution of income and wealth

7.5 Economic factors affecting income and wealth inequality in Australia

7.6 Different perspectives about the distribution of income and wealth

7.4 The reasons why the distribution of income and wealth is an important issue

7.3 Measures of Australia’s distribution of income and wealth

7.2 Definition, nature and direction of income and wealth

7.1 Overview

6.8 Review

6.7 Economic responses and government policies involving international trade

6.6 Different perspectives about the issue of international trade

6.5 The economic factors influencing international trade

6.4 The benefits of international trade for Australia and the global economy

6.3 Measurement of Australia’s international transactions

6.2 Definition, nature and direction of international trade

6.1 Overview

5.8 Review

5.7 The Australian government’s economic responses to address changes in the labour market

5.6 Different perspectives about the changing labour market

5.3 Measures of Australia’s changing labour market

5.5 The economic factors influencing changes in Australia’s labour market

5.2 Definition and nature of the labour market

5.1 Overview

4.16 Review

standards

4.13 The potential costs of economic growth

4.12 The potential benefits of economic growth

4.10 Aggregate supply — its meaning, importance and factors affecting its level and economic activity

4.11 The measurement of economic growth using changes in Gross Domestic Product (GDP

4.8 BACKGROUND KNOWLEDGE: Overview of factors that may affect Australia’s level of economic activity

4.9 Aggregate demand — its meaning, importance and factors affecting its level and economic activity

4.6 Types of economic indicators

4.5 The business cycle

4.4 The five-sector circular flow model

4.3 The meaning of material and non-material living standards

3.5 Review

3.4 The effectiveness of strategies used by businesses to influence consumer behaviour

3.1 Overview

3.3 The effectiveness of strategies used by government to influence consumer behaviour

2.10 Review

2.9 Researching a contemporary Australian or global market

2.8 How changes in relative prices and profits affect Australia’s resource allocation

equilibrium price and quantity

2.3 BACKGROUND KNOWLEDGE: How markets make key economic decisions — the big picture

2.4 The law of demand and movements along the demand curve

2.5 The law of supply and movements along the supply curve

2.2 The nature of perfectly competitive and other types of markets in an economy

2.1 Overview

1.9 Review

1.5 Decision making in different economic systems

1.4 Making economic decisions

1.3 The basic economic problem of relative scarcity

1.8 Governments and their role as economic agents

1.6 Consumers and their behaviour as economic agents

1.1 Overview

1.7 Businesses and their behaviour as economic agents

1.2 What is economics?