Explain how the change to the exchange rate between 2019 and 2020 may have influenced the changes in imports, exports, inflation and economic growth? The table below includes hypothetical economic information for the Australian Economy.Year 2019Year 2020Unemployment rate1.5 %6.4 %Inflation rate3 %1.0 %Investment Expenditure($ billions)18.016.2Consumption Expenditure($ billions)47.935.8EconomicGrowth rate4 %- 0.5 %Exports ($ billions)20.225.6Imports ($ billions)28.521.6Exchange rate AUD/USD0.6750.569

Given 2019 2020 Unemployment rate 1.5% 6.4% Inflation rate 3% 1.0% Investment…

Answered: The table below includes hypothetical…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain how the change to the exchange rate between 2019 and 2020 may have influenced the changes in imports, exports, inflation and economic growth?

The table below includes hypothetical economic information for the Australian Economy.
Year 2019
Year 2020
Unemployment rate
1.5 %
6.4 %
Inflation rate
3 %
1.0 %
Investment Expenditure
($ billions)
18.0
16.2
Consumption Expenditure
($ billions)
47.9
35.8
EconomicGrowth rate
4 %
- 0.5 %
Exports ($ billions)
20.2
25.6
Imports ($ billions)
28.5
21.6
Exchange rate AUD/USD
0.675
0.569

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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