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BUS102 Introduction to Economics : Global Financial Market

Questions:

1.Access the article at the URL given above and read it carefully. Based on your reading, answer the questions in the spaces below. Use full sentences and show all necessary working but do not use more space than is given here. Other references are not necessary but, if you do use any (for example, online economics glossaries) please list at least the URL of your source.

2.In 2008-2009, although real GDP grew, real GDP per capita fell. Give the rates of growth reported in the article for 2008-2009 of the two terms in italics and explain why they differ.

3.What is population growth for 2008-2009?

4.After falling in December 2008, it took until September 2010 for GDP per capita to exceed its September 2008 level. What annual growth rate of GDP per capita over the period from September 2008 to September 2010 is implied by the figures in the article?

5.What is the official definition of a recession?  On what basis does Greg Jericho argue that, although there may have been no official recession since the 1990s, he thinks there was one?

(a) Jericho argues that the GFC is “having an extremely long tail.” Explain what he means by this. What evidence does he give to back up his point?

(b) In which two States or Territories is the problem worst and what does he suggest could be the political impact?


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