i. Suppose you have $150,000 in a bank term account. You earn 5% interest per annum from this account. 

You anticipate that the inflation rate will be 3% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have

ii. Examine the effects of inflation in your city of residence (Sydney) with attention to food and accommodation expenses (around at least 150 words)

iii. The Australian Bureau of Statistics (ABS) reported in May 2016 that the civilian population in Australia over 15 years of age was 19.8 million. 

Of this population of 19.8 million Australians, 12.5 million were employed and 0.8 million were unemployed

Calculate Australia's labor force and the number of people in the civilian population who were not in the labor force? 

Answer rating: 100% (QA)

i Since the rate of inflation of 6 exceeds the nominal interest rate of 5 it implies that the real interest rate is negative Real interest rate nomina... View the full answer