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Unemployment Rate In Australia

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2. Many people find the current unemployment figures for Australia a bit unbelievable. Why is this? Why might the official statistics be inaccurate? The current unemployment rate in Australia has left everyone not convinced of its authenticity. One of the reasons is because of what happened in August and September. Usually more jobs are lost in august and more are employed in September. However, this time round the opposite happened. There were121, 000 jobs created in august and jobs lost in September. ABS has admitted of having problems with the adjustment of the data which helps in eliminating the effects of seasonal changes. They have chosen to look for outside help to find a better method. There are several reasons that can cause the …show more content…

Using the simple Keynesian (J-W) model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What happens to the level of savings? What would happen to equilibrium income if there is a sustained rise in private investment spending?
An increase in the savings function will also in effect lead to an increase in the amount of savings. A sustained rise in private investment spending will lead to a rise in the equilibrium income.
4. State the difference between:

-Money multiplier and income expenditure multiplier.
Money multiplier shows the effect the money in the reserve has on the amount of money in the banking system while the income expenditure shows the effect that a change in the expenditure of both private and public sector has on the economy -between the interest rate and the exchange rate
The interest rate is the amount charged above the amount loaned, saved or borrowed while exchange rate is the value of a currency compared to another currency. - Between the balance of payments deficit and the budget deficit
A budget deficit is when spending is higher than the income while a balance of payment deficit is the difference when the capital and current account do not

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