
2020 EA Sample
Authored by Damian Lowrie
Social Studies
12th Grade
Used 1+ times

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6 questions
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1.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
What is the fundamental role of fiscal policy?
controlling the budget deficit
establishing automatic stabilisers
reducing government regulations
making revenue and expenditure decisions
2.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Of the following microeconomic reforms, which is most likely to reduce unemployment?
increasing the minimum wage
increasing unemployment benefits
increasing tariffs on imported goods
increasing protection against unfair dismissal
3.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Which of the following Australian Federal Government policy decisions would increase inflationary pressures (ceteris paribus)?
raising personal income taxes
setting a surplus federal budget
appreciating the Australian dollar
increasing government expenditure
4.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Which of the following is an example of a time lag when policymakers decide on a fiscal course of action?
the time between the removal of government subsidies and the onset of higher unemployment
the time taken for the government to reduce the company tax to encourage business investment
the time between the government authorising additional health expenditure and the building of a hospital
the time taken for the government to decide how best to reduce the economic impact of a natural disaster
5.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Identify the most likely effect of a government decision to finance a budget deficit by borrowing from domestic sources (ceteris paribus).
The exchange rate of the Australian dollar will depreciate.
Australian interest payments on foreign debt will fall.
Money supply in Australia will increase.
Interest rates in Australia will rise.
6.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Identify the sign of external instability in the Statement on Monetary Policy, ceteris paribus.
increases and decreases in the exchange rate
lifting disposable income and consequent spending
China’s higher demand for exports and commodity prices
effects of the cash rate reduction on households and local businesses
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