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d) Explain and use a graph to illustrate how a legally imposed minimum wage can contribute to unemployment.Supplementary Assessment
6. Economic growth is a macroeconomic topic that affects the prosperity and standard of living of the residents of an economy. a) Define and explain economic growth. b) What type of policy is used by the government to generate economic growth? Explain the ways in which a government can implement policy to generate economic growth. By means of a diagram, show the effects on aggregate demand and/or aggregate supply that occur with the different methods of implementation.
Case Study Task: There are a number of economic concepts in the “Treasury chief warns big changes are on the way” post from Ross Gittins, Sydney Morning Herald Economics Editor tAp://www.rossgittins.com/2020/11/treasury-chief-warns-tig,L.ges-in,html Explain (in the context of the article) the following quotes using your understanding of the economic terms and concepts — include graphs where appropriate: I. What is the intended outcome of expansionary “fiscal policy”? Explain the “changes in government spending and taxing” to implement expansionary fiscal policy. Why is it linked to “sustainability (levels of public debt) issues”? [6 marks]
2. Fiscal policy has also been implemented with “the JobKeeper wage subsidy and the temporary supplement to the JobSeeker dole payment… Explain how this policy is designed and expected to work. [4 marks]
3. Explain how “the Three Ps — growth in population, participation in the labour force, and productivity’. can “increase economic growth over the medium to long-term”. [6 marks]
4. The article refers to “there’s a risk that closures among smaller firms will lead to even more market concentration” and concluding let’s hope nor. Why is market concentration considered to be negative? [4 marks]
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