QCE EconomicsPractice Examination 20

This paper covers

• Technology-driven productivity growth and long-run aggregate supply (LRAS)
• AD/AS model — supply-side shifts, real GDP, price level, employment effects
• Macroeconomic objectives: economic growth, full employment, price stability
• Aggregate supply/microeconomic reform policies: deregulation, competition policy, labour market reform
• Fiscal policy stance: budget position, automatic stabilisers, crowding out
• Monetary policy: RBA cash rate, four transmission channels, lags and limitations
• External stability: current account, exchange rate effects of productivity gains
• Trade-offs between macroeconomic objectives in the short run vs long run
• International competitiveness, comparative advantage and Australian manufacturing exports
• Equitable income distribution and structural unemployment from technology adoption

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.