ECS2602
Assignment 1
Semester 2
2025
, Assessment 1: Videos and Questions
Learning Unit 1 (19 Marks):
Question 1:
Like any business or household, each year the (a) ________________ has a
(b)_______________.
Answer
Like any business or household, each year the (a) government has a (b) budget.
Question 2:
The main reason why a government would want to increase output is to keep (a)
_____________. Any time it tries to decrease output, or slow down an economy, is to
fight (b) _________________.
Answer
The main reason why a government would want to increase output is to keep (a)
unemployment low. Any time it tries to decrease output, or slow down an economy, is to
fight (b) inflation.
Question 3:
(a) _______________spending is when governments spend more money than is
coming in as (b) _____________.
Answer
(a) Deficit spending is when governments spend more money than is coming in as (b)
taxes.
Question 4:
The maximum amount that a bank can lend is often determined by a
_________________. (1)
Answer
The maximum amount that a bank can lend is often determined by a reserve ratio.
Assignment 1
Semester 2
2025
, Assessment 1: Videos and Questions
Learning Unit 1 (19 Marks):
Question 1:
Like any business or household, each year the (a) ________________ has a
(b)_______________.
Answer
Like any business or household, each year the (a) government has a (b) budget.
Question 2:
The main reason why a government would want to increase output is to keep (a)
_____________. Any time it tries to decrease output, or slow down an economy, is to
fight (b) _________________.
Answer
The main reason why a government would want to increase output is to keep (a)
unemployment low. Any time it tries to decrease output, or slow down an economy, is to
fight (b) inflation.
Question 3:
(a) _______________spending is when governments spend more money than is
coming in as (b) _____________.
Answer
(a) Deficit spending is when governments spend more money than is coming in as (b)
taxes.
Question 4:
The maximum amount that a bank can lend is often determined by a
_________________. (1)
Answer
The maximum amount that a bank can lend is often determined by a reserve ratio.
