Intermediate Macroeconomics

    Scenario: Suppose due to growing budget deficit, the federal government has cut funding support provided to the state governments. (support your answers with graphs wherever appropriate) 1) How will this impact the Western Australian economy? (5 marks) 2) Discuss the role of exchange rate on the Western Australian economy. How is it in this scenario? (5 marks) 3) Discuss the role of mining sector on the Western Australian economy. How is it in this scenario? (5 marks) 4) Do you think WA government should cut essential services or unemployment benefits to meet the funding shortfall? (5 marks) 5) Comment on how a shortage of funds will impact the University sector in WA. (2.5 marks) 6) How will the exhaustion of public sector funding impact the housing market?(2.5 marks) 7) How will the fund shortages impact interest rates and private investment?(5 marks) 8) How will funding cuts impact the Western Australian economic output ?(10 marks) 9) What are the best strategies to combat any negative effects of funding cut from the Federal government ?(5 marks) 10) What are the future growth prospects for WA? (5 marks)