VCE EconomicsPractice Examination 8

This paper covers

• Tracing a global supply chain disruption through both the micro demand-supply model and the macro AD-AS framework
• Cost inflation versus demand inflation, and the goal conflict it creates for monetary policy when growth is already weak
• Terms of trade, exchange rate depreciation and international competitiveness during a global trade shock
• Aggregate demand versus aggregate supply policy responses: short-run stabilisation versus long-run capacity building

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.