Ask Question, Ask an Expert


Ask Macroeconomics Expert

Outline and Instructions:

In this assignment you will be asked to do two things. First, forecast certain macroeconomic variables prior to their official release. Second, discuss your forecasts, the significance of the data for the economy and develop an opinion and commentateabout certain economic issues.

The total weight of the assignment is 25% of your final mark. The assignment has two parts. Part A requires you to submit some forecasts. This has to be done before the data is released, so note the submission time for this part of the assignment. Part Bis the main part of the assignment. It contains a number of questions on macroeconomic topics. Many of these can be started immediately. One question, asks you to discuss your forecasts in Part A and how accurate they were. This obviously needs to be done after the data is available.

In submitting Part A answer the required questions and post the whole assignment to Blackboard. In submitting Part B, include your earlier answers for Part A and submit the whole document to Blackboard.

To successfully complete this assignment you will need to undertake some research. Your lecture notes and textbook will be useful in this regard, particularly in understanding the definition of the variables to forecast in Part A. For Part A and B it is highly recommended that you make use of the information sources listed in the Appendix in developing your thoughts on the domestic and global economy. Add any resources you cite to the reference list at the end of this document. Place your answers to the question in grey boxes. Adjusttheir size as necessary but make sure you keep to the word limit.

1. Part A: Macroeconomic Forecasting

Question A.1.

Provide forecasts for the variables listed below by inserting a number in the grey box. (Note: this question will be evaluated as part of Question B.1)


   Variable Data source or where the data can be found Release or forecast date Forecast


CPI (y/y % chg. in 2016Q1) ABS (

27-Apr-16 0.5

Unemployment Rate (%of labour force, seasonally adjusted, March 2016) ABS (

14-Apr-16 5.8

ASX200 Share Index (


(end of day) 4850

Australian Dollar vs US Dollar (No. of USD to buy 1 AUD) (


(end of day) 0.7

2. Part B: Macroeconomic Analysis

Question B.1:

Discuss how your forecasts compared with the actual numbers, any errors and why? What are the implications of the data for fiscal and monetary policy makers in Australia and in particular, is the data likely to lead to a change in monetary or fiscal policy settings?

Question B.2.

Briefly outline how the global economy, and recent global economic events, have impacted and are impacting on the Australian economy?

Question B.3:

730_Macroeconomic Analysis.jpg

Referring to Figure 1.7 in the textbook (Dornbusch, Bodman, Fischer and Statz, 2013) and lecture notes; at what point do you think the Australian economy is at in the business cycle?In your answer outline whether you think the economy is performing above or below potential GDP, what the normal level of GDP and CPI growth is, what you think is the natural rate of unemployment (NRU) and why.

Question B.4:
Discussone major risk to the Australianeconomyfrom the demand side and one major risk on the supply side. That is, discuss two events which, were they to occur,would negatively affect aggregated demand (AD) and aggregate supply (AS) respectively leading to higher unemployment. Also, discuss your assessment of the probability of each event occurring.

Question B.5:
What is your expectation regarding the performance of the Australian economy over the next 10 to 20 years with regard to GDP growth?How will it perform compared with the previous couple of decades? Discuss with reference to the growth drivers such as; technology, population and ageing, physical capital, human capital and natural resources?

Assignment Part B


Actual Data

CPI (y/y % chg. in 2016Q1)

1.3% y/y

(-0.2% q/q)

Unemployment Rate (% of labour force, seasonally adjusted, March 2016)


ASX200 Share Index [end of day on April 27]


Australian Dollar vs US Dollar (No. of USD to buy 1 AUD)  [end of day on April 27]


In Q1 of Part B you are asked to evaluate how accurate your forecasts were. On some variables you may have done quite well while on others perhaps not so well (I did great on the unemployment rate but terribly on the ASX200 and AUD).

Have a think about why you were wrong; what were the developments in the economy you didn't expect? With regard to the second part of Q1--the implications of the data for policy--you may want to have a look at this news article which discusses the CPI result, which was quite a shock.


Also there is a lot of additional discussion of the CPI results in the media, which may also be useful for your research.

We have now also covered all the material in lectures, which will be useful in formulating your assignment answers. Remember the idea of the assignment is to write a topical and contemporary piece of commentary on the Australian economy.

So address the question and try to provide some insight into the issues facing the Australian economy based upon the material in lectures and your knowledge and research. Also note you need to keep your responses to each question within the 200-word limit. This will be enforced.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91767287
  • Price:- $40

Priced at Now at $40, Verified Solution

Have any Question? 

Related Questions in Macroeconomics

Ambulance fee schedule centers of medicaid and medicare

Ambulance Fee schedule centers of medicaid and medicare services. 1. What is the education for 2. What are the Benefits that are provided 3. What limitations are there 4. The importance of the Medical Conditions List. 5. ...

The basic primitive keynesian macro-economic model focuses

The basic (primitive) Keynesian macro-economic model focuses solely upon the determination of equilibrium in the real sector (goods market). This is made possible by the assumption that the interest rate (RD) is constant ...

To get you started concentrate on two distinct chapters in

To get you started concentrate on two distinct chapters in the Schiller textbook. See chapter 4 for an analysis of the problems of individual markets. See chapter 10 for an analysis of problems in the aggregation of mark ...

Bnks are holding nearly 25 trillion in excess reserves

Banks are holding nearly $2.5 trillion in excess reserves. Explain why increased business uncertainty about future sales coupled with asymmetric information could explain why bankers are holding their reserves rather tha ...

Your switched network has two catalyst 3560 switches with

Your switched network has two Catalyst 3560 switches with redundant connections. You are configuring the switches to increase available traffic bandwidth between them by actively negotiating an EtherChannel using PAgP ch ...

Discuss and contrast how your metropolitan area and state

Discuss and contrast how your Metropolitan Area and State employment and unemployment rates compared to the Rest of the U.S. by briefly summarizing the information within these categories. Such as, identifying the civili ...

Chapter 1 - multiple choiceappraise this statement in

Chapter 1 - Multiple Choice Appraise this statement: In equilibrium, a monopsonistic hospital will hire fewer nurses at lower wages than would a hospital in a more competitive market, to the detriment of social welfare.

Analyze the macroeconomic factors that led to the 2007-2009

Analyze the macroeconomic factors that led to the 2007-2009 recession. How were GDP, inflation, and unemployment affected during the recession, and how does the model show this? What monetary policies and fiscal policies ...

You hold an american option to sell one share of a stock

You hold an American option to sell one share of a stock. The option expires tomorrow. The strike price of the option is $50, and the current stock price is $49. What is the value of exercising the option today? Please e ...

Discuss a scenario in which the use of leading indicators

Discuss a scenario in which the use of leading indicators for your industry or firm (or an industry or firm of your choosing, could be fictitious or general) might improve performance and promote better decision making. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen