Unit 2: Modified markets
4 dot points across 2 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.
Topic 2: Macroeconomic indicators and government policy
A focused QCE Economics Unit 2 answer on the determinants of AD and AS. Identifies the eight main AD factors and the six main AS factors, traces cause-and-effect chains to real GDP, employment and inflation, and applies the framework to recent Australian conditions.
A focused QCE Economics Unit 2 answer on macroeconomic indicators. Defines real GDP, the CPI and the unemployment rate, identifies the ABS data sources, explains the limitations of each measure, and applies them to current Australian conditions.
A focused QCE Economics Unit 2 answer on the expenditure multiplier. Defines the marginal propensities to consume and save, derives the multiplier from the leakages (saving, taxation, imports), works through a numerical example, and explains why a change in injections changes national income by a larger amount.
