Quiz 4 questions

1) What is productivity and why is it important?

2) Assume an initial equilibrium in the labour market for computer analysts. Now computer
analysts decide to strike for higher wages and are successful in increasing the wage rate.
How will this affect the equilibrium wage rate and employment of computer analysists?

3) Start off from a point of equilibrium in the aggregate demand supply (AD-AS) model. Now
assume that exports from Australia (which is the home country) increase. How does this
affect the equilibrium price level and output?

4) Start off from a point of equilibrium. Assume that rapid growth in country A leads to an
increase in consumption expenditure. Show how this can lead to an inflation in country A.