ECONOMICS
Unit 4: Contemporary macroeconomics
Topic 1: Macroeconomic objectives and theory
- recall the circular flow model, the components of aggregate demand (represented by Consumption + Investment + Government + Net exports (Exports – Imports) or C + I + G + (X – M)) and the key factors affecting these components
- apply the aggregate demand/aggregate supply model to determine the overall price level and equilibrium level of real output in an economy
- evaluate the Australian Government’s economic management and achievement of its macroeconomic objectives in the last 10 years.
Topic 2: Economic management
Sub-topic A: Demand management policies — fiscal policy
- select sources and investigate recent Australian federal budget outcomes to analyse the causes and effects of expansionary and contractionary fiscal policy stances
- evaluate the effectiveness of fiscal policy responses in achieving the government’s economic objectives of sustainable economic growth, internal and external stability in order to improve living standards.
Communication skills
- create responses that communicate economic meaning using data, information, graphs and diagrams to suit the intended purpose, and demonstrate order, sequencing and development of ideas using paragraphs and extended responses.