Explain demand curve and fiscal policy, Microeconomics

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1. Explain externality, how can government intervene to achieve allocative efficiency in case of external cost or external benefit?

2. Explain oligopoly's structure and use game theory to explain why oligopoly firms tend not to use price to compete.

3. Analyse the strengths and weaknesses of GDP as a measurement.

4. Distinguish frictional, structural and cyclical unemployment. How is unemployment measured? What are the costs of unemployment and how can policy makers reduce its impact?

5. Explain inflation, and the difference between anticipated and unanticipated inflation.

6. Distinguish demand pull, cost push and imported inflation using graphs where appropriate. What are the likely causes of current inflation in Australia?

7. Explain why the demand curve for the Australian dollar is downward sloping, and why the supply curve for the Australian dollar is upward sloping.

8. Explain why changes in the business cycle affect the durable and non durable industries differently.

9. Explain the impact of expansionary or contractionary fiscal policy on GDP.

Discuss the problems of Fiscal Policy?


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