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MACROECONOMICS 1 (ECON1246, ECON1273)

Semester 2. 2022

Assessment 2 Part 1

The Task

An individual assignment that will cover the performance of the economies of Australia and China in recent years with a focus on Australia.  It will include the impact of COVID_19 on the Chinese economy in 2021 and the impact this may have on the Australian economy.

It will assess the following topics and learning outcomes 1 to 8.

· GDP and the business cycle – Topic 3

· Aggregate Demand / Aggregate Supply – The Product Market – Topic 4

· Inflation – Topic 5

· Unemployment and the Labour Force – Topic 6

· Exchange rate market – Topic 7

Your Report is to use the report format template available in this assessment.

The Assessment comprises:

1. Section A: Introduction

The economy of Australia and China and the business cycle.

2. Section B: Unemployment and Inflation in Australia in 2021.

3. Section C: China’s economy in 2021 post COVID_19.

4. Section D: Analysis and conclusion.

5. Formatting using report template including referencing. 

In this AT2 Part 1 submit

- A: Introduction and

- B: Unemployment and inflation in Australia in 2021.

In AT2 Part 2 submit

- C: China’s economy in 2021 and

- D: Analysis and conclusion.

________________________________________________________________________

Instructions

This assessment contributes 40% of the overall marks for the course (Part 1 contributes 20%). 

Only a single attempt of submission is permitted.  Please ensure to attach the final version of the assessment. 

· Do not write the questions or attach this page to your submission.  Submit using either word or PDF format.  

· Explain your answers, but be succinct (brief and relevant). Label each axis and explain the diagram that you use carefully. Show all of your working in order to get partial credits. 

· After the due date any late submission will be marked as ‘late’. A penalty of 10% of the allocated marks (i.e., 2 marks) per day will apply for late submissions.

· Referencing and Acknowledgement of sources.

Students are required to acknowledge all sources of information and to include a bibliography of cited texts.  Note that material and answers that are not acknowledged or correctly referenced will not be considered for assessment.   

For guidelines on referencing, see a document on Canvas (Assignments | Assessment Task 2: titled, “Guidelines for Referencing.”

Note on Plagiarism: You cannot just copy your friend’s answers.  This is considered academic plagiarism. See ‘students responsibilities’ at RMIT’s policy on this:  http://www1.rmit.edu.au/browse;ID=sg4yfqzod48g1

The Report

A. Australian and Chinese business cycle.

Refer to data sheet for both Australia and China that is available on canvas / Assessment task 2.

1. What phase of the business cycle was the Australian economy in in 2020 and in 2021?  Briefly explain for each year.

Which of the following components of Aggregate Demand; Consumption spending, Investment spending and Net exports made the biggest contribution to the cycle in 2021? Explain your answer.

Your answers above should include reference to relevant data.

2. What phase of the business cycle was the Chinese economy in in 2020 and in 2021?  Briefly explain for each year.

Which of the following components of Aggregate Demand; Consumption spending, Investment spending and Net exports made the biggest contribution to the cycle in 2021? Explain your answer.

Your answers above should include reference to relevant data.

(6 + 6 = 12 marks)

B. Unemployment and Inflation and its causes for Australia.

1. Explain the likely cause of the change in the unemployment rate in 2021?  Identify and explain whether it was cyclical or non-cyclical unemployment or both.

Refer to relevant data in your answer.

2. Refer to the GDP Deflator for Australia in 2021. Identify and explain the likely cause of the change in the inflation rate for Australia in 2021?  

Your answer should include the impact of the change in the rate of demand-pull inflation, cost-push inflation and export and /or import prices.

(3 + 5 = 8 marks)

Formatting including report template, referencing and bibliography.

(3 marks upon completion of AT2)

 

Recommended Word limits:

A: 150 x 2 = 300 words

B: 150 x 2 = 300 words

Note:  the above limits are recommended word limits.  Your answers should be relevant and within the word limit.  Note:  Long and irrelevant, internet-based answers will not be given credit.

 

Course Learning Outcomes

1. Describe the operation of the Australian economy to apply in various contemporary macroeconomic issues.

2. Read and critically evaluate current economic news articles as they relate to the Macroeconomy.

3. Assess how government policies and changing macroeconomic conditions affect societal welfare.

4. Demonstrate an understanding of recent economic events and their impact on current policy initiatives on the Australian economy.

5. Interpret charts, graphs, and tables and use the information to make informed judgments.

6. Work and learn independently and work as a team.

7. Communicate macroeconomics concepts and issues effective in a variety of business contexts.

8. Evaluate business outcomes based on the costs and benefits involved.