Navy Shipyard in Western Australia- Australian Economy- Report Writing Assignment Help

Internal Code: TV627

Report Writing Assignment Help:

Task: Question 1: a. The Australia government recently signed a contract to build a new Navy shipyard in Western Australia and plans to spend $90b. Assuming fixed prices and that all monies will be spent in Australia, explain how the Australian economy will be affected by the $90b in new government purchases using AD-AS framework. (Remember: If you do not talk about the AD and AS curves, you are not using the AD-AS model.) b. Why is traditional term ‘business cycles’ a misnomer? How does your answer relate to the easy or difficulty of forecasting peaks and troughs? Question 2: Government survey determines that typical family expenditures each month in the year designated as the base year which are as follows: In the year following the base year, the survey determines that pizzas have risen to $11 each, apartment rent is $640, petrol and maintenance has risen to $120, and phone service has dropped to in price to $40. a. Find the CPI in the subsequent year and the rate of inflation between the base and the subsequent year. b. The family’s nominal income rose by 5% between the base and the subsequent year. Are they worse off or better off in terms of what their income is able to buy?