Part A: Maximum of 450 words for Part A

The government wants to introduce programs to make sure that citizens can afford adequate and affordable housing. It is considering a report that proposes four ways of pursuing that goal:

(i). Passing a law requiring that all rent be cut by one forth.

(ii). A subsidy to all home builders.

(iii). Providing a subsidy directly to the renters equal to one-fourth of the rent they pay.

(iv). A grant to the first home buyer.

Predict what effect each of these proposals would have of the price and quantity of housing (rental/owner occupied) in the short run and in the long run?

Part B Maximum of 350 words for Part B

Explain the impact of the following on the Australian GDP (Gross Domestic Product). In your answer, you need to mention which component of GDP is mostly affected:

(i). Demise of the mining boom.

(ii). A significant decrease in Business Tax.

(iii). Sharp economic downturn or a recession

Part C: maximum of 150 words for Part C

"GDP is a useless measure. It is not able to do the job that it is intended for" Critically evaluate this statement.