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  1. Introductory concepts
  2. Market mechanism
  3. Elasticities  
  4. Market structures
  5. Market failures
  6. Macro activity/eco growth
  7. Inflation
  8. Employment & unemployment
  9. External Stability
  10. Income distribution
  11. Factors affecting economy
  12. Fiscal/Budgetary policy
  13. Monetary Policy
  14. Aggregate Supply Policies
  15. The Policy Mix
  16. Course revision


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 Course notes quick navigation

1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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How you are marked

The maximum score for each question is 100%. For every hint used, your percentage score is reduced by the ratio of that letter to the total letters required in the answer. For example, if the total number of letters within the gaps is 50 across the whole response, then each letter is worth 2 percentage points. Each hint will therefore reduce your score by 2 percentage points.

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11. Explain why an adverse weather event, like floods in parts of Australia, impacts negatively on the headline rate of inflation. 2 marks


12. Explain why the underlying rate of inflation for a given period might be lower than the headline rate of inflation. Use an example to illustrate. 4 marks

13. Explain why an increase in the Trade Weighted Index (TWI) is likely to reduce the rate of inflation. 3 marks

14. Define the goal of low inflation and discuss how a failure to achieve low inflation can cause a reduction in living standards. 4 marks

15. Explain how a further reduction in tariffs in the motor vehicle industry helps to reduce the rate of inflation. 3 marks

16. Explain why slower wages growth helps to reduce inflationary pressure. 3 marks

17. Explain how a higher household savings ratio is likely to impact on the government's low inflation goal over the short to medium term. 3 marks

18. Explain why the loss of crops due to a natural disaster is unlikely to affect the underlying rate of inflation. 3 marks

19. Explain how an increase in the Terms of Trade (TOT) might increase the rate of inflation. 2 marks

20. Explain how an increase in the Terms of Trade (TOT) might decrease the rate of inflation. 2 marks

21. Discuss one problem for the Australian economy if inflation exceeds the inflation rates experienced in the economies of our trading partners. 4 marks