Assignemnt: Macroeconomic Policy

Research Essay Topic: Australian Mining Boom

In the 21st century, Australia witnessed an extraordinary mining boom. Explain the impact of the mining boom on the Australian economy.

Here are some things you may consider in your essay:

1. What effect did this have on the economy?

(i) Explain how it affected the components of GDP and why.
(ii) What happened to other macroeconomic variables? E.g. interest rates, Australian dollar (exchange rates), etc.
(iii). Apply to any appropriate macroeconomic models we cover in this course (in particular, use diagrams):

a) Keynesian Cross model
b) IS-LM model
c) Budget line (Government Deficit/Surplus)
d) Aggregate Demand-Aggregate Supply (AD-AS) model

2. How did the government respond?

(i) Fiscal policy
(ii) Monetary policy

In your research assignment, you must clearly but succinctly address each specific point mentioned in the essay topic.

Word limit: Maximum 1,500 can be shorter.