False Review the media release by Phillip Lowe the Governor

False

Solution

Question 1.9) answer false

Demand pull inflation occurs when AD in economy outpaces AS, inflation increases as real GDP increases & unemployment falls , moving along Philips curve.

Cost push inflation occurs due to increased production costs & wages

1.10 , answer option A, inflation tragetting aims at maintaining stable interest rate.

1.11 reducing cash rate makes borrowing cheaper , thus encourage spending

So and option B)

Bcoz cheaper loans will raise the demand for loans for housing & hence real estate market price escalates