QCE EconomicsPractice Examination 7

This paper covers

• Fiscal policy: budget surplus, contractionary fiscal stance, automatic stabilisers
• Aggregate demand/aggregate supply model: demand-side shocks, shifts in AD
• Macroeconomic objectives: economic growth, full employment, price stability, external stability, equitable income distribution
• Multiplier effect and crowding-out effect
• Monetary policy: RBA cash rate, transmission channels, lags and limitations
• International economics: balance of payments, current account, net foreign liabilities, external stability
• Exchange rate determination under Australia's floating regime
• Trade theory: comparative advantage, trade barriers, WTO
• Aggregate supply and microeconomic reform policies
• Business cycle interpretation 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.