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Practice Questions

Economic Management
1. Explain how the Australian government might use fiscal policy to respond to a recession. In your answer, discuss the potential benefits and risks of increasing government spending during economic downturns.
2. Describe how the Reserve Bank of Australia (RBA) uses monetary policy to control inflation. Evaluate why lowering interest rates might help the economy but could also have some negative effects.

Inequality
1. Explain the difference between income inequality and wealth inequality. Discuss one way the Australian government might try to reduce these inequalities and why it could be effective or not.


Key Economic and Social Indicators (KESI) | APH

We have a new source for economic data!!!

It's not entirely new actually, but APH's KESI has received a pretty significant renovation. The Key Economic & Social Indicators (KESI) dashboard from the Australian Parliamentary Library offers an interactive snapshot of Australia’s latest economic and social data—covering areas like employment, GDP, household and foreign debt, wages, prices, and business conditions. The updated design makes it incredibly easy to scale to specific timelines, something that shoul dbe super handy when trying to format stimulus. This tool is invaluable: it presents real-world statistics in a clear, accessible format, allows users to download data files, and supports deeper analysis of trends affecting Australian society.


Iron Ore in Decline | ABC News

The Business ran an interesting story looking at recent trends and related global issues placing downward pressure on the value of iron ore. Australia’s iron ore exports are losing value as weaker demand from China and rising global supply push prices down. This decline could hit government revenue and the broader economy hard. While a rebound is possible if China boosts stimulus, long-term challenges remain. To stay competitive, Australia may need to shift toward higher-grade production and diversify its mining sector. Watch the full story to see what’s at stake. Students may find this interesting as it shows how global events can directly impact Australia’s economy and living standards. It also links to key topics in our syllabus like trade, government revenue, and structural change.

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