Question 1
The graph shows a market for Australian dollars (invented figures). Overseas demand for Australian coal rises, so the demand for Australian dollars shifts from D1 to D2. What is the new equilibrium?
Writing the Section III stimulus-based response
Choose one of two questions and write about 800 words, using the stimulus material with it: tables, graphs or short extracts. The top answers use the stimulus throughout, not once.
| Marks | 20, one of two questions |
|---|---|
| Length | About 800 words |
| Stimulus | Data, graphs or extracts to use |
| Key words | Analyse, assess, discuss, evaluate |
A plan for the stimulus
- In reading time, mark the two or three trends in the stimulus that answer the question.
- An introduction that defines the key terms and answers the question in one sentence.
- Body paragraphs that each make a point, explain the theory behind it and quote a figure or trend from the stimulus as evidence.
Use the stimulus, then go beyond it
An answer that never cites the stimulus cannot reach the top. Quote its figures, say what they show, and add your own knowledge of the Australian economy and of economic theory to explain them.
Try 2 questions
Question 2
| Current account item | Credits | Debits |
|---|---|---|
| Goods | 310 | 300 |
| Services | 70 | 85 |
| Primary income | 30 | 75 |
| Secondary income | 5 | 7 |
The table shows a hypothetical economy's current account for a year, in billions of dollars (invented figures). The capital account shows a net −1. In the financial account, where a positive figure is a net inflow and a negative figure a net outflow, net direct investment is 20, net portfolio investment is 45 and reserve assets are −4. Net errors and omissions are zero. What was net other investment?
Next step
Questions people ask
How much of the stimulus should I use?
Use the parts that answer the question, in several paragraphs, not a summary of all of it. Each figure you quote should support a point you explain.
Can I bring in my own examples?
Yes. The stimulus is the starting point; your own accurate knowledge of the Australian and global economy strengthens the analysis.