Part C Answer any two (2) of the following questions below.

Part C Answer any two (2) of the following questions below.

Question 1

Outline the trends or movements in the Australian dollar (from Jan 2020 onwards). Discuss possible reasons behind the fluctuations and give examples as to how this might have affected or can affect other economic indicators such as unemployment, inflation, net exports and ultimately the GDP of the economy.

Question 2

In Australia, as in most developed countries, the housing market is often characterized by cycles. That is, prices tend to rise, then plateau, and even fall over time, only to rise again in the next stage of the cycle. While cycles in Australia have historically lasted between 7 to 10 years, in the long run (over many decades) housing prices have trended upwards. Show the effects on the housing market of: (a) a growing population, and (b) a shortage of rental vacancies.

Note:

Two pages per question maximum. Can include diagrams. Use proper referencing.

(Need to apply macroeconomic concepts and theoretical analysis wherever relevant. Please use appropriate citation and Chicago 17th B referencing)