ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP.
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The government has actively pursued economic policy to combat recessions and prolong expansions.
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Unemployment benefits and other government programs curtail the decline in spending that occurs during a recession.
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Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP
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Detailed explanation-1: -A network of 16 free trade agreements gives Australian companies preferential access to these fast-growing markets. Australia is well positioned to grow its resources, energy, agriculture, and education and tourism services exports in the Asia region.
Detailed explanation-2: -Another major problem with Australia is that the economy is largely dependent upon natural resources. The mining for coal and minerals is the main occupation in Australia. The growth in the Australian economy is largely driven by export of these natural resources. This is obviously a problem!
Detailed explanation-3: -The terms of trade boom was driven by very large increases in the prices of some of Australia’s commodity exports. Australia has plentiful supplies of natural resources, including the second largest accessible reserves of iron ore in the world, the fifth largest reserves of coal and significant gas resources.