Economic Skills

select and use appropriate terminology

apply mathematical techniques relevant to macroeconomics, including:

calculations relating to the circular flow of income

calculating the inflation rate using the Consumer Price Index (CPI)

calculating the unemployment rate and the participation rate from labour force data

calculating and interpreting rates of change in Gross Domestic Product (GDP)

interpreting Lorenz Curves

calculating marginal and average rates of taxation

use economic models to analyse and convey economic theory and reasoning related to macroeconomic events and issues, including:

the five sector circular flow model

the Aggregate Production Function (APF)

the business cycle

the production possibility frontier

the Lorenz Curve and the Phillips Curve

select and/or use economic information and data to:

identify trends and relationships in the macroeconomy

analyse macroeconomic issues and events 

predict movements in macroeconomic trends using indicators

link economic theory to contemporary macroeconomic events and issues 

justify a conclusion

select and use a clear structure when communicating economic understandings, including:

using a relevant and accurate diagram/model

making reference to a diagram/model/data to support a written response

applying problem-solving, critical thinking and decision-making strategies to predict a macroeconomic outcome 

recommending a range of demand management policies to achieve Australia’s macroeconomic objectives and mitigate demand and supply shocks.