QCE EconomicsPractice Examination 15

This paper covers

• Exchange rate determination under Australia's floating regime
• AUD depreciation transmission mechanism
• Iron ore prices and terms of trade
• Balance of payments and current account
• Net exports and aggregate demand
• Imported inflation and domestic price stability
• AD/AS model application
• RBA monetary policy transmission channels
• Macroeconomic objectives and trade-offs
• External stability as a macroeconomic objective
• Fiscal policy stances and multiplier effects
• Comparative advantage and trade patterns
• J-curve effect on current account
• Demand-pull and cost-push inflation
• Business cycle and macroeconomic indicators

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.