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  • Writer's pictureShaun Brien

Structuring SAC Answers in AOS2 and Beyond

So by now you've probably wrapped up AOS1 and you're leaving the world of Microeconomics behind until late in term 3 when you look at your notes and think "I don't remember ever writing these"..... but that's future you's problem, your current problem is how to master the exam style responses needed to perform your best in Macroeconomic based questions.


One thing you're going to quickly come to notice is that questions in AOS2, 3 and Unit 4 will follow a really similar structure and wording and therefore if you know how to respond to them, you can easily get as many marks as possible.


You'll quickly realise that many questions follow this exact formula: (Task word) how an increase/decrease in (aggregate demand factor) would impact on (aggregate demand/Economic growth/Inflation/Full employment).


SAMPLE QUESTION:

Explain how a decrease in personal income tax rates would impact on aggregate demand. (3 marks)


With a question like this you've really got to nail 3 key things to get the full marks. 1. Outline what a decrease in personal income tax rates is. 2. Describe the impact that would have on components of aggregate demand. 3. State the overall impact on aggregate demand. Personally I like to plan my answers out during arrows and symbols before fleshing it out into full sentences. Eg.

From there I can flesh it out into full sentences to cover all of the marks. Sample answer: If there was a decrease in personal income tax rates this would mean that households would have an increase in their disposable and discretionary income. This would lead to an increase in private consumption spending as consumers are better able to satisfy their needs and wants. An increase in private consumption spending would also then lead to an increase in aggregate demand overall.


You may sometimes get more complex versions of this where it is an analyze or discuss question where it is worth 4 or more marks. This would mean that there is likely impacts on multiple components of aggregate demand or potentially positive and negative impacts.


If you'd like more help with task words or answering SAC questions in VCE Economics, check out the Guide to Task Words in VCE Economics (https://www.therunningeconomy.com/product-page/guide-to-task-words-in-vce-economics) and if you're a student hit me up for a discount code for 50% off the price. Otherwise make sure you stay tuned and subscribed to the YouTube page as I plan to get some tutorial videos for Macroeconomic SAC style questions up in the near future.

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