How AS91227 is assessed
What you hand in
- AS91227 is internally assessed and worth 6 credits — the largest standard at this level, so expect it to take the most work.
- It is usually a written report on a current New Zealand economic issue and the government policies aimed at it.
The criteria
| Grade | Requirement |
|---|---|
| Achieved | Identify/state/describe government policies that achieve specific policy objectives relating to one issue; explain the direct impact on that issue using an economic model(s); explain the flow-on effects on two other issues using an economic model(s) |
| Merit | Both explanations, detailed |
| Excellence | Justify a combination of policies that achieves the objectives and minimises negative flow-on effects on the two other issues; integrate model changes into the detailed explanations |
A report structure that maps onto the criteria
1 — The issue and the objective
- Name the contemporary economic issue you are targeting, and show it qualifies (inflation, international trade, economic growth, unemployment, or another issue involving the allocation of scarce resources).
- State the specific policy objective — e.g. return inflation to the 1–3% band; reduce cyclical unemployment.
- Use current New Zealand data to show the issue exists.
2 — The policies
- Name the policies and which of the four families each belongs to.
- Name the institution responsible: RBNZ, the government/Treasury, MBIE/Commerce Commission, MFAT.
3 — Direct impact on the target issue
- The full chain, with an economic model and its labels integrated.
4 — Flow-on effect 1
- A different issue, its own chain, its own model, and whether it is positive or negative.
5 — Flow-on effect 2
- The same again, on a third issue.
6 — The combination (Excellence)
- The additional policies, each attached to a specific flow-on it reduces and the mechanism.
- Why this combination beats the main policy alone, and beats the obvious alternatives.
- What it costs and what it cannot fix.
7 — Conclusion
- A clear judgement on whether the combination is the right response.
The checks before you submit
- One target issue clearly identified, with a specific objective
- Policies drawn only from the four families
- Correct institutions named — the RBNZ sets the OCR, not the government
- Direct impact explained with a model, labels used inside the sentences
- TWO flow-on effects, on two other issues, each with its own model
- Each flow-on labelled positive or negative
- A combination of policies, not one
- Each extra policy tied to a named flow-on it minimises, by a named mechanism
- Alternatives considered and rejected with reasons
- Limits and costs of the combination stated
- Current New Zealand data, referenced
Worked ExampleAuditing a draft against the criteria
A student's draft contains:
- A section on inflation in New Zealand with current CPI data
- A detailed explanation of how the RBNZ raising the OCR reduces inflation, with an AS/AD diagram
- A paragraph noting that "this might also affect unemployment and the exchange rate"
- A conclusion saying the RBNZ should keep raising the OCR
Audit it against the criteria.
Step 1 — Target issue and objective
✓ Met. Inflation is on the standard's list, and current CPI data establishes the issue.
⚠️ Check: is the specific objective stated? It must say return annual CPI inflation to the RBNZ's 1–3% target band, not just "reduce inflation".
Step 2 — Policies identified with objectives
✓ Partly met. Monetary policy is correctly identified and belongs to one of the four families.
⚠️ Check: is the institution correct — the RBNZ's Monetary Policy Committee, acting under its Remit, not the government?
Step 3 — Direct impact with a model
✓ Met, and this is the strongest part. The full chain with an AS/AD diagram is exactly what the criterion asks for.
⚠️ For Excellence: are the model's labels used inside the sentences — AD to AD1, PL to PL1 — or does the diagram sit separately?
Step 4 — Flow-on effects on two other issues
✗ Not met. "This might also affect unemployment and the exchange rate" is a mention, not an explanation. There is no chain, no model, and no statement of whether each effect is positive or negative.
Fix — write two full sections:
Flow-on to unemployment. AD left → real GDP falls from Y to Y1 → derived demand falls → DL shifts left to DL1 → employment falls from Le to Le1. On the PPF, a point inside the frontier. Negative.
Flow-on to international trade. Higher OCR → demand for NZ$ shifts right → NZ$ appreciates from Er to Er1 → exports dearer overseas, imports cheaper → falls, rises → balance on goods and services worsens. Negative.
Note that the exchange rate is a channel, not an issue — the issue is international trade. Naming the issue correctly matters.
Step 5 — The combination (Excellence)
✗ Not met. The conclusion recommends one policy, more of it. The criterion requires a combination that minimises the negative flow-ons.
Fix — add at least two more policies, each tied to a flow-on:
- Supply-side fiscal spending (infrastructure, training) → shifts AS right, which lowers the price level without contracting demand, so the OCR does not need to rise as far → both flow-ons shrink.
- Targeted fiscal support (income support, retraining) for those losing jobs → reduces the unemployment flow-on without re-stimulating economy-wide AD.
Then justify: why not the OCR alone; why not fiscal alone; why not nothing. And state the limits: supply-side policies are slow, targeted support worsens the operating balance, and fiscal policy must not fight monetary policy.
Step 6 — The audit summary
| Criterion | Status | What is needed |
|---|---|---|
| Issue and specific objective | ⚠️ | State the 1–3% band explicitly |
| Policies and institutions | ⚠️ | Confirm the RBNZ, not the government |
| Direct impact with model | ✓ | Integrate labels into sentences |
| Flow-on 1 | ✗ | Full section: unemployment, with models |
| Flow-on 2 | ✗ | Full section: international trade, with models |
| Combination | ✗ | Two more policies, each tied to a flow-on |
The draft currently meets one criterion of three at Achieved. But the existing work is good — the fix is two new sections and a rewritten conclusion, not a restart.