new study design for eco Unit 3 &4? what is likely to appear on the exam (2018)

[lifeisgood]

hey judging by the economic performance this year do you think there will be questions relating to the following.
1. factors that have helped to achieve the goal of full employment (since unemployment has just hit 5%)
2. factors that have helped to achieve the goal of low inflation (cpi at 2.1%)
3. factors that have made the CAD worse/ structural and cyclical factors
4. something about the budget deficit  for 2017/18 being lower than expected.
please help could someone test me on this stuff and other questions if you've got any.

[Chelsea f.c.]

Personally I wouldn't base your study around what you believe may be on the exam and it's better to cover all bases but seeing as you want questions.

How would a demand shock or supply shock affect inflation, output and unemployment and show via diagram e.g. A decrease in oil supply e.g. Sanctions on Saudis and/or a decrease in demand for minerals maybe from china due to trade tariffs???

Why does the rba say the current account deficit is a good thing and compare with America???

What affect does a weak dollar have on GDP???

If you post your answers I'm available for feedback =)

[zofromuxo]

The exam is always completed by March this year.
You can use or not use that information to hlep your study.

As for your questions you posted, all of those are possible questions.
I advised you look at the 2017 exam and the exam report for an idea on what they may test you know on, typically the topics on the student didn't do well part have a chance of around 65% being on the next exam.

But in general there is always a question about the budget, one with economic performance linked to the goals of full employment, strong & sustainable goals, low inflation, etc.
I think you should follow Chelsea f.c.'s response and study everything to cover your bases.

[lifeisgood]

Personally I wouldn't base your study around what you believe may be on the exam and it's better to cover all bases but seeing as you want questions.

How would a demand shock or supply shock affect inflation, output and unemployment and show via diagram e.g. A decrease in oil supply e.g. Sanctions on Saudis and/or a decrease in demand for minerals maybe from china due to trade tariffs???

Why does the rba say the current account deficit is a good thing and compare with America???

What affect does a weak dollar have on GDP???

If you post your answers I'm available for feedback =)

yeh I have basically studied for everything....I think. ill try answering the answers
1.  a decrease in demand for minerals from china due to trade tariffs will reduce export sales, thus reducing the price of commodity. this will increase
2. the current account deficit would not be a bad thing if it is used to Increase investments in capital equipment as well as infrastructure and new mines will help to boost employment, national income, economic growth as well as living standards.
3. a weak dollar (how weak though i would say 70cents) will increase export sales as australian exported goods become cheaper for overseas buyers. at the same time a lower dollar would decrease imports (as it becomes more expensive for australians to purchase imported good) hence net exports would increase. this would increase AD and therefore increasing GDP.
how did i do   

[Elayg6]

The exam is always completed by March this year.
You can use or not use that information to hlep your study.

As for your questions you posted, all of those are possible questions.
I advised you look at the 2017 exam and the exam report for an idea on what they may test you know on, typically the topics on the student didn't do well part have a chance of around 65% being on the next exam.

But in general there is always a question about the budget, one with economic performance linked to the goals of full employment, strong & sustainable goals, low inflation, etc.
I think you should follow Chelsea f.c.'s response and study everything to cover your bases.

So since the exam is completed by March 2018, we cant say on the exam data for August 2018 (e.g. unemployment rate is 5.3% as of August 2018, 3.4% for economic growth as of June 2018) ?

[lifeisgood]

So since the exam is completed by March 2018, we cant say on the exam data for August 2018 (e.g. unemployment rate is 5.3% as of August 2018, 3.4% for economic growth as of June 2018) ?

nah I think its all good. from what my teacher said if it asks about assess the economies performance on achieving either of the three goal. Give data. it should be fine if you put the dates. if it is a question asking you to analyse a data chart I would stick to what is on the graph. I think giving current data just shows that you are knowledgeable and are up to date. see for the exam I'm gonna say the unemployment rate has fallen to 5% (as of sept 2018) blah blah blah. sorry if I'm rambling

[Elayg6]

nah I think its all good. from what my teacher said if it asks about assess the economies performance on achieving either of the three goal. Give data. it should be fine if you put the dates. if it is a question asking you to analyse a data chart I would stick to what is on the graph. I think giving current data just shows that you are knowledgeable and are up to date. see for the exam I'm gonna say the unemployment rate has fallen to 5% (as of sept 2018) blah blah blah. sorry if I'm rambling

Oh okay, cheers!

[Chelsea f.c.]

For q1 it refers to ad-as diagram i believe you've studied??? I.e. A decrease in exports will shift ad curve left as it represents a decrease in output for each given level of inflation whereas Saudi sanctions I.e. Oil will increase inflation for each given level of output I.e. Shift supply up... try again (also remember short run and long run affects 1 paragraph each)

Why is current account deficit good??? It refers to a capital account surplus I.e.aussies are bad savers and cannot satisfy all businesses investment needs where international savers invest in our businesses thus increasing investment and leading to higher output and wages.... compared to America our debt is largely held by firms whereas as in America government debt is 20 trillion or thereabouts so that means money is used to create returns not wasteful consumption (a curly q)

And 3 is fine

[lifeisgood]

 yeh for question 1 I got distracted and forgot to answer the diagram part of the question. thanks for the feedback.

[Chelsea f.c.]

My advice if you want to rote learn something then it should be ad-as model use past answers/textbook to create a response to the 4 possible scenarios and fill in blank e.g. If there was an increase oil prices this would cause...