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Economic management — Question 5

QCAA 2020, Paper 1 · 1 mark

Q5 · 2020 · External assessmentUnclassified1 mark

QUESTION 5

Assume the hypothetical economic scenario shown.

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Based on this scenario, identify the economic management required (ceteris paribus).

(A) Reduce oil price inflation by providing a short-term subsidy to the business sector.

(A)

(B)

(B) Reduce overseas cost inflation pressures by delaying government spending.

©)

(C) Reduce wage inflation and price pressures by decreasing the cash rate.

(D) Reduce expected inflation by introducing an inflation target range.

(D)

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