a. In a conversation, Tom mentioned that Australia's economic growth did not change because the market...

 

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a. In a conversation, Tom mentioned that "Australia's economic growth did not change because the market value of total production in both 2016 and 2017 was $1.4 million. Upon checking, you found that Australia's GDP implicit price deflator increase from 101.2 in 2016 to 104.4 in 2017. Explain with numerical calculations if the statement by Tom is factually accurate. (2 marks) b. Ricky has two (2) businesses. The economic contraction in 2020 decreased sales in his new car dealership but the sales in his fruit and vegetable shop remained steady. Explain, using business cycle terminology and graph(s), why are Fred's businesses affected differently. (2 mark) a. In a conversation, Tom mentioned that "Australia's economic growth did not change because the market value of total production in both 2016 and 2017 was $1.4 million. Upon checking, you found that Australia's GDP implicit price deflator increase from 101.2 in 2016 to 104.4 in 2017. Explain with numerical calculations if the statement by Tom is factually accurate. (2 marks) b. Ricky has two (2) businesses. The economic contraction in 2020 decreased sales in his new car dealership but the sales in his fruit and vegetable shop remained steady. Explain, using business cycle terminology and graph(s), why are Fred's businesses affected differently. (2 mark)

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a Australias Economic Growth Toms statement is not factually accurate Heres why Economic growth refers to the change in the real value of production o... View the full answer