QCE EconomicsPractice Examination 11

This paper covers

• Monetary policy transmission mechanisms and limitations
• RBA cash rate decisions and household debt
• Fiscal policy as an alternative macroeconomic tool
• Aggregate supply and microeconomic reform
• Trade-offs between macroeconomic objectives
• AD/AS model — demand-side and supply-side shocks
• Balance of payments and current account
• Exchange rate determination under Australia's floating regime
• Comparative and absolute advantage in international trade
• Macroeconomic indicators: GDP, unemployment, inflation
• Crowding out and fiscal multiplier
• Equitable income distribution and living standards

Students are permitted to bring into the examination the materials normally allowed for this subject. Answer all questions in the spaces provided.

This is an ATARMAxxing practice paper. It is not an official examination and is not affiliated with, endorsed by, or produced by the VCAA, NESA or the QCAA.