1, A falling labour force participation rate is a concern for an economy because a, it increase the tax burden on working persons to support non-working persons in the population. b, it reduces the growth in social welfare spending by government and results in higher budget surplus. c, mature age person are staying in the labour force for longer using their experience and skills. d, all the above are correct 2, The most effective way of reducing structural unemployment is to a, reduce income taxes and interest rates to increase the level of aggregate demand. b, provide retrain to workers whose skills are outdated and offer subsidies to employees to employ and retrain unemployment workers. c, provide job search assistance to school and university graduates. d, reduce the immigration of skilled workers who reduce the number of job opportunities for local workers. 3, Explain the effect of a decrease in interest rates in Australia and at the same time an increase in the demand for imported resources(eg.oil) on the demand for and/or supply of dollars and the resulting change in the exchange rate for Australian dollars. And the impact on Australia’s net exports, real GDP, price level and explain the change(increase or decrease) of cyclical unemployment.
