QCE EconomicsPractice Examination 19

This paper covers

• International Economics: absolute and comparative advantage, trade patterns, exchange rate determination under floating regime
• Balance of payments: current account deficit, net foreign liabilities, external stability
• Trade barriers: tariffs, quotas, subsidies, WTO, trade agreements
• Globalisation: structural unemployment, income distribution, living standards
• Macroeconomic objectives: economic growth, full employment, price stability, external stability, equitable income distribution
• AD/AS model: business cycle, multiplier, demand-side and supply-side shocks
• Fiscal policy: budget stances, automatic stabilisers, crowding out, multiplier effect
• Monetary policy: RBA cash rate, four transmission channels, lags and limitations
• Supply-side/microeconomic reform: labour market reform, competition policy, deregulation, privatisation
• Trade-offs between macroeconomic objectives
• Global recession: export demand shock, contractionary business cycle phase
• Policy mix evaluation: fiscal, monetary, and supply-side policy combinations

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.