ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase imports from Japan, shifting Japan’s AD curve right
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import more goods from Japan, shifting Japan’s AD curve left
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export more goods to Japan, and its AD curve shifts right
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export more goods to Japan, and its AD curve shifts to left
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Detailed explanation-1: -Economic relationship From Japan, Australia imports vehicles, refined petroleum, machinery and tyres. More recently, Japanese investment into Australia has been expanding into renewables; financial services; infrastructure; information and communications technology; property; food; and agribusiness.
Detailed explanation-2: -JAEPA is the most liberalising bilateral trade agreement that Japan has ever concluded, providing Australian exporters, importers, investors and producers a significant advantage over their international competitors. JAEPA eliminates or reduces barriers to trade in goods between Japan and Australia.
Detailed explanation-3: -The Australia–Japan partnership is Australia’s closest and most mature in Asia and is fundamental to both countries’ strategic and economic interests. The relationship is underpinned by a shared commitment to democracy, human rights and the rule of law, as well as common approaches to international security.
Detailed explanation-4: -Trade is central to the Australian economy, and Australian exports represent over 20% of gross domestic product (GDP). Approximately 65% of Australia’s two-way trade occurs with countries in Asia (see the article ‘Australia’s trade in figures’ elsewhere in this Briefing book).