Economic Skills

select and use appropriate terminology

apply mathematical techniques relevant to Australia’s economic policy and management, including calculating:

• the value of the marginal propensity to consume, the marginal propensity to save and the multiplier

• the budget outcome

• labour productivity

• interpreting changes in economic indicators, such as the Consumer Price Index (CPI), GDP and labour force data, a percentage rate of change

use macroeconomic models to analyse and convey economic theory and reasoning Australia’s economic policy and management, including:

• the aggregate expenditure model

• the aggregate demand/aggregate supply model (SRAS and LRAS)

• the aggregate production function (APF)

select and/or use economic information and data to:

• identify trends and relationships on Australia’s economic policy and management

• analyse macroeconomic issues and events

• make predictions on Australia’s economic policy and management

• 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

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

recommend a range of demand management policies and policies that promote productivity to achieve Australia’s macroeconomic objectives and mitigate demand and supply shocks.