QCE EconomicsPractice Examination 2

This paper covers

• Fiscal policy — expansionary budget stance, budget deficit, automatic stabilisers, crowding out
• AD/AS model — aggregate demand shifts, multiplier effect, demand-side shocks
• Macroeconomic objectives — economic growth, full employment, price stability, external stability, equitable income distribution
• Monetary policy — RBA cash rate, transmission channels, lags and limitations
• International economics — current account, balance of payments, exchange rate, external stability
• Trade theory — comparative advantage, terms of trade, trade patterns
• Microeconomic/supply-side reform — labour market, competition policy
• Business cycle — output gap, unemployment, inflation trade-offs
• Globalisation — structural unemployment, income distribution, living standards
• Budget stance identification and interpretation from fiscal data

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.