Question 1
Using data from the Australian Bureau of Statistics (ABS) http://www.abs.gov.au/ collect information on unemployment and inflation rates for Australia over the period 2001 to 2016, inclusive. Employ annual data. Be explicit and define and provide sources for the data obtained.
Plot on a single diagram the relationship between inflation and unemployment, measuring inflation on the vertical axis and unemployment on the horizontal axis. Comment on whether any relationship exists between these variables and any implications of your findings.
Question 2
Employ the aggregate demand and supply model for the Australian economy, to analyse the consequences for real GDP and the general price level of the following scenarios. Confine your analysis to the use of short-run AD/AS curves. In your response clearly state your assumptions and illustrate your answers with diagrams.
(a) India has placed a 30% tariff on chickpea exports from Australia,
(b) The demand for Australian wine in China has substantially increased,
(c) The federal government plans to spend approximately $5 billion on Snowy Hydro 2.0 to generate more electricity power capacity,
(d) The price of oil, a product Australia primarily imports, fall substantially,
(e) An increase in the immigration intake substantially increases the Australian labour force.
Rationale
The question addresses the following learning outcome:
- be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.
Marking criteria
Question 1
Learning outcome:be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives. This question requires the collection and analysis of data on unemployment and inflation and an outline of some potential policy implications.
| HighDistinction(85%+) | Complete and perfectly accurate collection and analysis of data on unemployment and inflation. An excellent discussion of the resulting implications of the analysis of data. Highly developed skills in expression and presentation of ideas. Provides well-argued articulated statements with excellent supporting evidence. |
| Distinction(75%-84%) | Complete and very accurate collection and analysis of data on unemployment and inflation. A very good discussion of the resulting implications of the analysis of data. Well-developed skills in expression and presentation of ideas. Provides well-argued and articulated statements with very good supporting evidence. |
| Credit (65%-74%) | A mainly complete and accurate collection and analysis of data on unemployment and inflation. A good discussion of the resulting implications of the analysis of data. Some well-developed skills in expression and presentation of ideas. Provides some well-argued and articulated statements with some good supporting evidence. |
| Pass (50%-64%) | A mainly complete and satisfactory collection and analysis of data on unemployment and inflation. A satisfactory discussion of the resulting implications of the analysis of data. Some inconsistency in sentence structure and some expression lapses. Arguments based on limited evidence. |
| Fail (Less than50%) | A mainly incomplete and poor collection and analysis of data on unemployment and inflation. A poor discussion of the resulting implications of the analysis of data. Poor communication of ideas due to careless writing and lack of proof-reading. Little demonstrated evidence of ability to construct clear and coherent arguments. |
Question 2
Learning outcome: be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives. This question requires a thorough understanding of how the aggregate demand and supply model can be used to analyse major economic variables such as real GDP and the general price level in an economy.
| HighDistinction(85%+) | An excellent use of the AD/AS model to analyse the provided scenarios.The use of excellent diagrams throughout. A clear and complete statement of assumptions employed in the analysis. Highly developed skills in expression and presentation of ideas. Provides well-argued articulated statements with excellent supporting evidence. |
| Distinction(75%-84%) | A very good use of the AD/AS model to analyse the provided scenarios.The use of very good diagrams throughout. A clear and complete statement of assumptions employed in the analysis. Well-developed skills in expression and presentation of ideas. Provides well-argued and articulated statements with very good supporting evidence. |
| Credit (65%-74%) | A mainly complete use of the AD/AS model to analyse the provided scenarios.The use of good diagrams throughout. A clear and mainly complete statement of assumptions employed in the analysis. Some well-developed skills in expression and presentation of ideas. Provides some well-argued and articulated statements with some good supporting evidence. |
| Pass (50%-64%) | A satisfactory use of the AD/AS model to analyse the provided scenarios.The use of partially complete diagrams throughout. A mainly complete statement of assumptions employed in the analysis. Some inconsistency in sentence structure and some expression lapses. Arguments based on limited evidence. |
| Fail (Less than50%) | A poor and mainly incomplete use of the AD/AS model to analyse the provided scenarios.The use of poor diagrams throughout. A poor and mainly incomplete statement of assumptions employed in the analysis. Poor communication of ideas due to careless writing and lack of proof-reading. Little demonstrated evidence of ability to construct clear and coherent arguments. |
Presentation
Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. .
Requirements
APA referencing must be used when citing literature.
This assignment must be submitted through Turnitin.
It is recommended that your name, student ID and page number are included in the header or footer of every page of the assignment.
Further details about submission in Turnitin are provided in On-line submission.