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© Mana Tohu Mātauranga o Aotearoa, 2013. Pūmau te mana.Kia kaua rawa he wāhi o tēnei tuhinga e tāruatia ki te kore te whakaaetanga a te Mana Tohu Mātauranga o Aotearoa.

Ohaoha, Kaupae 3, 201391403M Te whakaatu māramatanga ki ngā awenga ohaoha

whānui ki te ōhanga o Aotearoa

9.30 i te ata Rāhina 18 Whiringa-ā-rangi 2013 Whiwhinga: Ono

Paetae Paetae Kaiaka Paetae KairangiTe whakaatu māramatanga ki ngā awenga ohaoha whānui ki te ōhanga o Aotearoa.

Te whakaatu māramatanga hōhonu ki ngā awenga ohaoha whānui ki te ōhanga o Aotearoa.

Te whakaatu māramatanga matawhānui ki ngā awenga ohaoha whānui ki te ōhanga o Aotearoa.

Tirohia mehemea e ōrite ana te Tau Ākonga ā-Motu kei tō pepa whakauru ki te tau kei runga ake nei.

Me whakautu e koe ngā pātai KATOA kei roto i te pukapuka nei.

Ki te hiahia koe ki ētahi atu wāhi hei tuhituhi whakautu, whakamahia te (ngā) whārangi kei muri i te pukapuka nei, ka āta tohu ai i ngā tau pātai.

Tirohia mehemea kei roto nei ngā whārangi 2 – 24 e raupapa tika ana, ā, kāore hoki he whārangi wātea.

HOATU TE PUKAPUKA NEI KI TE KAIWHAKAHAERE HEI TE MUTUNGA O TE WHAKAMĀTAUTAU.

MĀ TE KAIMĀKA ANAKE

TAPEKE

See back cover for an English translation of this cover

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Kia 60 meneti tāu e whakautu ana i ngā pātai o tēnei pukapuka.

PĀTAI TUATAHI: TE AWENGA O NGĀ KAUPAPA HERE TAUHOKOHOKO KI TE ŌHANGA O AOTEAROA

He tuwhene tauhokohoko nui rawa mō Aotearoa i te mārama o Hakihea I te hauwhā o Hakihea 2012, i whiwhi a Aotearoa i te tuwhene tauhokohoko nui rawa mō Hakihea, ā, kātahi anō ka pēnei rawa te nui mai i te tau 1991, i kaha ake te heke o ngā whakaurunga mai o ngā rawa – otirā ngā wakarererangi – i ngā rawa i tukuna ki tāwāhi.He $486 miriona te tuwhene tauhokohoko mō Hakihea, e ōrite ana ki te 12 ōrau o ngā rawa i tukuna ki tāwāhi – tata ki te 10 whakareanga ake o te tuwhene toharite o te $49 miriona mō Hakihea o ngā tau e rima kua hipa, te kī a Tatauranga Aotearoa.Mātāpuna (he mea urutau): www.3news.co.nz/NZ-records-big-December-trade-surplus/tabid/421/articleID/284802/Default.aspx

Ka whai wāhi pea ngā kaupapa here a te kāwanatanga i hangaia hei whakatītina i tētahi kaute taurite onāianei ki te haina i ngā whakaaetanga tauhokohoko herekore, me te wawao i te mākete whakawhiti moni tauiwi, kia pai ai te pāpātanga whakawhiti moni ki tētahi tuwhene tauhokohoko. Ka whai pānga hoki ēnei kaupapa here ki te whakawhiwhinga mahi i roto i te ōhanga o Aotearoa.

Graph One – Foreign exchange policyPrice level

(PL)

Income, employment, output (Y)

Kauwhata Tuatahi – Kaupapa here whakawhiti moni tauiwiTaumata utu

(PL)

Moni whiwhi, whakawhiwhi mahi, whakaputanga (Y)

(a) (i) Ki te Kauwhata Tuatahi i runga, āta tuhia te awenga o tētahi pāpātanga whakawhiti moni e arotau ana ki tētahi tuwhene tauhokohoko ki te ohaoha whānui.

I tō whakautu:• tapaina ngā ānau• tapaina ngā nekenga ānau• tautuhia ngā pūwāhi tauritenga.

You are advised to spend one hour answering the questions in this booklet.

QUESTION ONE: THE INFLUENCE OF TRADE POLICIES ON THE NEW ZEALAND ECONOMY

New Zealand records big December trade surplus In the December 2012 quarter, New Zealand recorded its biggest December trade surplus since 1991, as imports – particularly of aircraft – fell more sharply than exports.The trade surplus was $486 million in December, equal to 12% of exports – roughly 10 times the average surplus of $49m for December in the previous five years, Statistics New Zealand said.Source (adapted): www.3news.co.nz/NZ-records-big-December-trade-surplus/tabid/421/articleID/284802/Default.aspx

Government policies designed to encourage a balanced current account could include signing free-trade agreements, and intervening in the foreign exchange market, so that the exchange rate is favourable to a trade surplus. These policies will also affect employment in the New Zealand economy.

Graph One – Foreign exchange policyPrice level

(PL)

Income, employment, output (Y)

(a) (i) On Graph One above, illustrate the influence that an exchange rate favourable to a trade surplus would have on the macro-economy.

In your answer:• label the curves• label any curve shifts• identify the equilibrium points.

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(ii) Whakamāramahia te pānga o tētahi pāpātanga whakawhiti moni e arotau ana ki tētahi tuwhene tauhokohoko ki te whai mahi, mā te kōrero mō ngā huringa i oti i a koe i te Kauwhata Tuatahi.

(ii) Explain the impact of an exchange rate favourable to a trade surplus on employment, by referring to the changes you made to Graph One.

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MĀ TE KAIMĀKA

ANAKEKo ngā whāinga ohaoha whānui a te kāwanatanga ko tētahi kaute taurite onāianei, me te whai mahi mā te katoa.

Graph Two – Free trade agreementsPrice level

(PL)

Income, employment, output (Y)

Kauwhata Tuarua – Ngā whakaaetanga tauhokohoko herekore Taumata utu

(PL)

Moni whiwhi, whakawhiwhi mahi, whakaputanga (Y)

(b) Whakatauritea te tōtikatanga o te waitohu i ngā whakaaetanga tauhokohoko herekore ki ngā whāinga ohaoha whānui o tētahi kaute taurite onāianei ME te whai mahi mā te katoa.

I tō whakautu:• huria te Kauwhata Tuarua i runga, hei āta whakaatu i te awenga o ngā whakaaetanga

tauhokohoko herekore ki te ōhanga whānui. Tapaina ngā ānau me te tautuhi i ngā pūwāhi tauritenga

• me kōrero mō ngā huringa kei te Kauwhata Tuarua• me whakamārama mai he pēhea te hua mai o tētahi kaute taurite onāianei i ngā

whakaaetanga tauhokohoko herekore • me whakamārama mai he pēhea te hua mai i ngā whakaaetanga tauhokohoko

herekore te whai mahi mā te katoa• me whakamārama he pēhea te whaitake ake o ngā whakaaetanga tauhokohoko

herekore ki te tutukitanga o tētahi kaute taurite onāianei tēnā i te whai mahi mā te katoa.

The government has macro-economic goals of a balanced current account, as well as full employment.

Graph Two – Free trade agreementsPrice level

(PL)

Income, employment, output (Y)

(b) Compare and contrast the effectiveness of signing free-trade agreements on the macro-economic goals of a balanced current account AND full employment.

In your answer:• make changes to Graph Two, above, to illustrate the influence that free trade

agreements would have on the macro-economy. Label curves and identify equilibrium points

• refer to changes in Graph Two• explain how free trade agreements can lead to a balanced current account• explain how free trade agreements can lead to full employment• explain why free trade agreements could be more effective at achieving a balanced

current account than full employment.

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PĀTAI TUARUA: TE AWENGA O NGĀ KAUPAPA HERE A TE KĀWANATANGA KI TE TIPU ME TE PIKINGA UTU

I ngā tau tata nei ko ētahi o ngā whakaaro puaki pea i puta mō nga kaupapa here kāwanatanga hei whakaongaonga i te tipuranga ohaoha, me te mau tonu ki te pūmautanga o ngā utu i te ōhanga o Aotearoa, ko te whakaratarata i ngā pakihi kia pai ai ki te Rangahau me te Whakawhanaketanga (R&D), te tango ture hei whakapai ake i te kaha whakanao me te haumitanga, me te whakaiti i ngā whakapaunga a te kāwanatanga.Mātāpuna (he mea urutau): www.scoop.co.nz/stories/PO1011/S00043/nz-needs-world-leading-pro-growth-policies.htm

Whakaotihia a (a) ki te (c) hei whakataurite i te awenga o ngā kaupapa here rerekē a te kāwanatanga ki te tipu o te ohaoha me te pikinga utu.

Graph Three – Removing regulations to improve productivity

Price level(PL)

Income, employment, output (Y)

Taumata utu(PL)

Moni whiwhi, whakawhiwhi mahi, whakaputanga (Y)

Kauwhata Tuatoru – Te tango ture hei whakapai ake i te kaha whakanao

(a) (i) Ki te Kauwhata Tuatoru i runga āta tuhia te awenga o te tango ture hei whakapai ake i te kaha whakanao ki te ohaoha whānui.

I tō whakautu:• tapaina ngā ānau• tapaina ngā nekenga ānau• tautuhia te tauritenga hou.

(ii) Whakamāramahia ngā huringa kua oti i a koe ki te Kauwhata Tuatoru.

QUESTION TWO: THE INFLUENCE OF GOVERNMENT POLICIES ON GROWTH AND INFLATION

In recent years suggestions for government policies to stimulate economic growth, while maintaining price stability in the New Zealand economy have included making Research and Development (R&D) attractive to business, removing regulations to improve productivity and investment, and reducing government spending.Source (adapted): www.scoop.co.nz/stories/PO1011/S00043/nz-needs-world-leading-pro-growth-policies.htm

Complete (a) to (c) to compare and contrast the influence that different government policies have on economic growth and inflation.

Graph Three – Removing regulations to improve productivity

Price level(PL)

Income, employment, output (Y)

(a) (i) On Graph Three above illustrate the influence that removing regulations to improve productivity has on the macro-economy.

In your answer:• label the curves• label any curve shifts• identify the new equilibrium.

(ii) Explain the changes you made to Graph Three.

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Reducing government spendingPrice level

(PL)

Income, employment, output (Y)

Kauwhata Tuawhā – Te whakaiti i ngā whakapaunga

a te kāwanatangaTaumata utu(PL)

Moni whiwhi, whakawhiwhi mahi, whakaputanga (Y)

(b) (i) Ki te Kauwhata Tuawhā, āta tuhia te awenga o te whakaiti i ngā whakapaunga a te kāwanatanga ki te ohaoha whānui.

I tō whakautu:• tapaina ngā ānau• tapaina ngā nekenga ānau• tautuhia te tauritenga hou.

(ii) Whakamāramahia ngā huringa i oti i a koe ki te Kauwhata Tuawhā.

Graph Four –Reducing government spending

Price level(PL)

Income, employment, output (Y)

(b) (i) On Graph Four, illustrate the influence that reducing government spending has on the macro-economy.

In your answer:• label the curves• label any curve shifts• identify the new equilibrium.

(ii) Explain the changes you made to Graph Four.

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ANAKEKa uaua te mahi a te kāwanatanga ki te whakahaere i te ōhanga nā ngā whakapātaritari o te whakatutuki i te tipuranga ohaoha me te pupuri i te pūmautanga utu.

(c) Whakatauritea te tōtikatanga o te whakatutuki i te tipuranga ohaoha me te pupuri i te pūmautanga utu i runga i ngā kaupapa here whakaaro puaki e rua o te tango ture hei whakapai ake i te kaha whakanao me te whakaiti i ngā whakapaunga a te kāwanatanga.

I tō whakautu:• whakamāramahia te pānga o te whakatītina i te kaha whakanao ki te tipuranga ohaoha

me te pūmautanga utu• whakamāramahia te pānga o te whakaiti i ngā whakapaunga a te kāwanatanga ki te

tipuranga ohaoha me te pūmautanga utu• whakamāramahia ko tēhea te kaupapa here tōtika ake mō te whakatenatena i te

tipuranga ohaoha me te pupuri i te pūmautanga utu• whakaurua ngā huringa ki ngā Kauwhata Tuatoru me te Tuawhā.

The government’s task of managing the economy is made difficult by the challenge of achieving both economic growth along with maintaining price stability.

(c) Compare and contrast the effectiveness on achieving economic growth and maintaining price stability of the two suggested policies of removing regulations to improve productivity and reducing government spending.

In your answer:• explain the effect of encouraging productivity on both economic growth and price

stability• explain the effect of reducing government spending on both economic growth and price

stability• explain which policy is more effective in encouraging economic growth and maintaining

price stability• integrate changes to Graphs Three and Four.

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PĀTAI TUATORU: NGĀ AWENGA OHAOHA WHĀNUI

Mātāpuna (he mea urutau): www.rbnz.govt.nz/statistics/econind/

Whakaotihia a (a) ki te (c), hei matapaki i ngā pānga o te hurihanga pakihi me ngā awenga ohaoha whānui ki te tipu me te whai mahi.

(a) (i) Mai i te rauemi i runga, tautuhia he wā i whai pānga pea te pikinga whakapau ki te ōhanga o Aotearoa.

(ii) Whakamāramahia te pānga o te pikinga whakapau ki te tipu GDP Tūturu me te whai mahi. I tō whakautu me kōrero mō te tauira hurihanga pakihi.

He tapu tēnei rauemi. E kore taea te tuku atu. Aata tirohia ki ngā kupu kei raro iho i te pouaka nei.

QUESTION THREE: MACRO-ECONOMIC INFLUENCES

Source (adapted): www.rbnz.govt.nz/statistics/econind/

Complete (a) to (c), to discuss the impacts that the business cycle and macro-economic influences have on growth and employment.

(a) (i) From the resource above, identify a time period when the New Zealand economy could have experienced increased consumption.

(ii) Explain the impact that increased consumption has on Real GDP growth and employment. Refer to the business cycle model in your answer.

For copyright reasons, this resource cannot be reproduced here.

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(b) Me whakamārama mai he aha te tikanga o te penapenatanga, ā, ka whakamāramahia te pānga wā-poto o te kaha piki o ngā penapena ki te tipu GDP Tūturu me te whai mahi.

I tō whakautu me kōrero mō te tauira hurihanga pakihi.

Kaua e kī he motuhake ngā awenga ohaoha whānui o te whakapau, penapena, me te haumitanga, ka whai awenga katoa ēnei mea e toru tētahi ki tētahi. Mā te taurite tika i waenga i ngā mea e toru nei ka āwhina ki te whakapūmau i te tipuranga ohaoha ukiuki i roto i te wā roa.

(c) Whakatauritea te tōtikatanga o te whakatītina whakapaunga, te whakatītina penapena rānei hei tikanga whakatutuki i te tipuranga ohaoha ukiuki i roto i te ōhanga o Aotearoa.

I tō whakautu:• whakamāramahia kia KOTAHI te pānga pai, kia KOTAHI hoki te pānga kino o te

pikinga whakapau ki te ōhanga whānui• whakamāramahia te hononga i waenga i te penapena me te haumitanga• whakamāramahia kia KOTAHI te pānga pai, kia KOTAHI hoki te pānga kino o te

pikinga penapena ki te ōhanga whānui• whakamāramahia ko tēhea te mea he nui ake te tūponotanga ka whakaputa i te

tipuranga ohaoha, arā, te pikinga whakapau, te pikinga penapena rānei • i roto i tō whakamāramatanga me kōrero mō te tauira hurihanga pakihi.

(b) Define what savings is, and explain the short-term impact that increased levels of savings has on Real GDP growth and employment.

Refer to the business cycle model in your answer.

The macro-economic influences of consumption, savings, and investment should not be viewed as independent, with all three having an influence on each other. The right balance between the three can help ensure sustained economic growth over the long term.

(c) Compare and contrast the effectiveness of encouraging consumption or encouraging savings as a way to achieving sustained economic growth in the New Zealand economy.

In your answer:• explain ONE positive and ONE negative impact of increased consumption on the

macro-economy• explain the link between savings and investment• explain ONE positive and ONE negative impact of increased savings on the macro-

economy• explain which is more likely to lead to sustained economic growth – increased

consumption, or increased savings • refer to the business cycle model in your explanation.

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TAU PĀTAI

He puka anō mēnā ka hiahiatia.Tuhia te (ngā) tau pātai mēnā e hāngai ana.

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QUESTION NUMBER

Extra space if required.Write the question number(s) if applicable.

© New Zealand Qualifications Authority, 2013. All rights reserved.No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qualifications Authority.

Level 3 Economics, 201391403 Demonstrate understanding of

macro-economic influences on the New Zealand economy

9.30 am Monday 18 November 2013 Credits: Six

Achievement Achievement with Merit Achievement with ExcellenceDemonstrate understanding of macro-economic influences on the New Zealand economy.

Demonstrate in-depth understanding of macro-economic influences on the New Zealand economy.

Demonstrate comprehensive understanding of macro-economic influences on the New Zealand economy.

Check that the National Student Number (NSN) on your admission slip is the same as the number at the top of this page.

You should attempt ALL the questions in this booklet.

If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question.

Check that this booklet has pages 2 – 24 in the correct order and that none of these pages is blank.

YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION.

English translation of the wording on the front cover

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