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Economic management — Question 10

QCAA 2022, Paper 1 · 1 mark

Q10 · 2022 · External assessmentUnclassified1 mark

QUESTION 10

Economics question figure

Key Tradable: Items exposed to a high degree of international competition Non-tradable: Items exposed to a low degree of international competition

Based on this hypothetical inflation data for Australia, which economic management response would be appropriate at Date A?

(A) reduce international interest rates to control imported inflation

(B) no response, because domestic inflation is within target range

(C) reduce the budget deficit to improve local economic forces

(D) increase interest rates to slow domestic inflation

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