Hsc Economic Essay Questions

Hsc Economic Essay Questions-35
This may be caused by an increase in supply or a decrease in demand.

This may be caused by an increase in supply or a decrease in demand.

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Since these topics are more abstract and may be indirectly linked to exchange rates, including them in your essay will help your response stand out.

Examples of diagrams you can include: During HSC I was often frustrated due to the lack of consensus of requirements regarding diagrams.

To address this issue I thought about the key components of aggregate demand.

Using the equation AD = C I G X — M, it is easy to identify at least 5 potential impacts.

Crafting a holistic response requires you to acknowledge that economic indicators are interdependent, so a movement in one indicator will cause a chain reaction. It simply requires you to analyse multiple topics in your response rather than sticking to a narrow explanation of one topic.

This will be clarified in the example below, where a question focusing on exchange rates incorporates an analysis of other indicators such as inflation, economic growth and international competitiveness.When examining causes of movements in an economic indicator it is useful to consider internal (domestic) and external (global) catalysts for change.Internally, consider what is happening in the Australian economy (e.g.changes in business and consumer sentiment, government policy), and externally, consider what is happening abroad (e.g.changes in foreign governments policies and economic growth patterns).Secondly, consider the two mechanisms by which a depreciation can occur: a decrease in demand for the $A or an increase in supply of the $A.If you are finding it difficult to brainstorm causes think about both the supply and demand side.Here is an example how to do so for the cash rate diagram: As shown in the diagram above, the RBA’s decision to loosen monetary policy involved increasing the supply of loanable funds in the overseas cash market.This shift in supply from S1 to S2 was achieved by buying bonds and depositing money into exchange settlement accounts, resulting in a movement to the right along the demand curve.Some markers are pedantic and will mark you down if diagrams are not ruled and labelled appropriately, whilst others are more lenient in their marking.Although it takes up more time I would encourage you to use a ruler and label diagrams meticulously.

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