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Economic management — Question 9

QCAA 2022, Paper 1 · 1 mark

Q9 · 2022 · External assessmentUnclassified1 mark

QUESTION 9

Which policy mix is the most appropriate in the following scenario?

Economics question figure

• Annual consumer price index movement: (Y0) 100 to (Y1) 102.

• Nominal gross domestic product movement: (Y0) $9.3 billion to (Y1) $9.5 billion.

• Non-accelerating inflationary rate of unemployment: (Y0) 4.5% to (Y1) 4.0%.

• Dwelling approvals have fallen slightly from Y0 to Y1.

(A) expansionary monetary and fiscal policy

(B) neutral monetary and fiscal policy stance

(C) expansionary monetary policy and neutral fiscal policy stance

(D) neutral monetary policy and fiscal policy that contracts the economy

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