Economics Assignment

Purpose

To enable students to research, critically analyse and evaluate the macroeconomic performance of Australia. This assessment contributes to Learning Outcomes b, c and d.

Length: 2500 Words.

2. Students will follow the following procedure:

(1) Obtain data on key macroeconomic indicators: real GDP growth, interest rates (Cash rate), unemployment rate, consumer price index (CPI), exchange rates, and exports and imports.

(2) Discuss the relationship between Australia's real GDP growth rate and inflation rate, and real GDP growth rate and unemployment rate. Is there evidence of the business cycle? Illustrate your discussion with summary statistics and pairwise graphs of real GDP growth rate - inflation rate, and real GDP growth rate - unemployment rate.

(3) Discuss the relationship between net exports (i.e., exports minus imports) and the real exchange rates between USA and Australia. Illustrate your discussion with summary statistics and pairwise graphs of the real exchange rates and net exports growth.

(4) Discuss the relationship between Australia's Cash rates and the Federal Reserve Fund's rates in USA. Do movements in the Federal Reserve Fund's rates net drive movements in the Cash rates? Illustrate your discussion with summary statistics and pairwise graphs of the Cash rates and the Federal Reserve Fund's rates.

(5) Based on your summary statistics, graphs and analysis and discussion above, write a short prediction of the macroeconomic outlook of Australia. Is Australia likely to experience a recession or expansion soon?

3. Research requirements, presentation and source of data

Research requirements: Students need to support their analysis with a minimum of 10 academic journal articles plus the text. Students aiming for a Credit or higher grade will need to use more sources. Articles should be relevant and recent. Non-academic journal sources may also may be used, but relevance and validity should be clarified with the lecturer/tutor.
Presentation: Report format - 2500 words report - in Word.doc or .docx format
Title page, executive summary, table of contents, appropriate headings and sub-headings, recommendations/findings/conclusions, in-text referencing and reference list (Harvard - Anglia style), attachments if relevant. Single spaced, font Times New Roman 12pt, Calibri 11pt or Arial 10pt.