Australia went through a drought in 2018, which reduced its agricultural output. In 2018, Australia’s secondary and tertiary sectors did better than the primary sector. All three sectors were influenced by the steps the central bank used to prevent deflation. A number of firms gained from these measures and raised their output.
(a)[2]
Identify two industries in the primary sector that are not agriculture.
(b)[4]
Explain two possible disadvantages to an economy if agricultural output falls.
(c)[6]
Analyse how a central bank could prevent deflation.
(d)[8]
Discuss whether a firm should make growth its main objective or not.
Worked solution & mark scheme
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