QCE EconomicsPractice Examination 6

This paper covers

• Current account deficit causes and consequences
• Exchange rate determination under Australia's floating regime
• Balance of payments structure and interpretation
• External stability as a macroeconomic objective
• AUD appreciation effects on trade flows and the J-curve
• Net foreign liabilities and net foreign debt
• Fiscal policy stances, automatic stabilisers, and budget aggregates
• Monetary policy transmission channels and RBA cash rate
• AD/AS model: demand-side and supply-side shifts
• Aggregate supply/microeconomic reform policies
• Trade-offs between macroeconomic objectives
• Macroeconomic policy effectiveness in restoring external stability
• Terms of trade, comparative advantage, and trade patterns
• Globalisation effects on structural unemployment and income distribution
• Evaluation of policy combinations for external balance

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.