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Economic management — Question 9

QCAA 2024, Paper 1 · 1 mark

Q9 · 2024 · External assessmentUnclassified1 mark

QUESTION 9

Assume the economy is at a trough position on the economic cycle.

Economics question figure

• A tighter overseas monetary policy is expected to contribute to weaker global

• International supply chain delays are reducing.

• The university sector is moving to online teaching to reach international students.

What should the monetary policy stance be after the updated economic data is taken into account?

(A) expansionary, because there will be less injections from the international sector

(B) neutral, because income flow between some sectors is balanced

(C) neutral, because supply chains are developing new trade routes

(D) contractionary, because the economy is expanding

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