QCEVault

Economic management — Question 4

QCAA 2023, Paper 1 · 1 mark

Q4 · 2023 · External assessmentUnclassified1 mark

QUESTION 4

Inflation targeting

(A) guarantees that inflation remains within a band of 2% to 3%.

(B) assists with managing an economy’s inflation expectations.

(C) encourages the banking sector to pass on rate changes.

(D) is most effective with cost-push inflation issues.

Question linkQCAA assessment resources

Related questions

  1. Q1 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 1 Identify a transfer payment in the federal budget. (A) military personnel wages (B) aged pension payments (C) new highway costs (D) indirect taxation
    Economic management
  2. Q2 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 2 What happens when the Reserve Bank of Australia decides to decrease the cash rate? (A) Bank deposit rates rise. (B) Banks pass on the rate change as soon as possible. (C) Financial institutions raise variable and fixed loan rates. (D) Interest rates change depending on each financial institution.
    Economic management
  3. Q3 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 3 Which reason is a justification for applying a demand-side economic policy in Australia? (A) to decrease cyclical unemployment (B) to maximise real economic growth (C) to enhance dynamic efficiency (D) to reduce business regulations
    Economic management
  4. Q4 · 2025 QCAA · Paper 1 · 1 mark
    QUESTION 4 If an economy is in an expansionary phase, automatic stabilisers should (A) increase employment. (B) raise income tax rates. (C) increase income tax revenues. (D) raise unemployment payments.
    Economic management