Answer two (2) questions. Maximum of 1000 words for each question. Use diagrams where appropriate to...

Question

Answer two (2) questions. Maximum of 1000 words for each question. Use diagrams where appropriate to enhance and explain your response. Provide supporting evidence and references where appropriate to justify your arguments.

Question 1 (Total 10 marks)

(a) Describe theJob KeeperandJob Seekerprograms implemented by the Australian federal government to mitigate the consequences of lockdown restrictions due to COVID-19 on the labour market.

(b) Using data from the Australian Bureau of Statistics (ABS)(http://www.abs.gov.au/) collect monthly data on the unemployment rate and hours worked from January 2019 until the most recently available monthly data. Employ seasonally adjusted data for all persons. Cite the employed ABS publication, table numbers and series id. Plot the unemployment rate and hours worked monthly data against time. Comment on reasons for the time series movements in these data.

(c) Discuss the relative merits of using: i) unemployment rate or ii) hours worked data; to describe the impact of lockdown restrictions due to COVID-19 on the labour market given the operation of theJob KeeperandJob Seekerprograms.

Question XXXXXXXXXXTotal 10 marks)

Employ the aggregate demand and supply model to analyse the consequences for real GDP and the general price level of the following scenarios for the Australian economy. Evaluate these scenarios assuming: i) the economyinitiallyoperates in the intermediate range of the aggregate supply curve; and ii) the economyinitiallyoperates in the vertical range of the aggregate supply curve. In your response clearly state your assumptions, support your arguments with recent evidence on the scenarios and illustrate your answers with diagrams.

(a) The impact of lockdown restrictions due to COVID-19.

(b) A fall in some Australian agricultural exports to China due to an increase in some tariffs and import restrictions.

(c) A substantial fall in the number of international students arriving in Australia to undertake higher education studies.

(d) A fall in permanent migration into Australia.

Abhishek · Accepted Answer

ECONOMICS
Table of Contents
Answer to Question 1	3
(a)	3
(b)	3
(c)	5
Answer to Question 2	5
(a)	5
(b)	7
(c)	8
(d)	8
References	10
Answer to Question 1
(a)
On 21st of July 2020, the government of Australia stated a program to support thousands of Australian who have lost their jobs in the pandemic and even the businesses, which have suffered due to the losses in the lockdown situation. The Job Keeper payment supported by the government was initiated in order to keep the Australians to work and reduce the unemployment rate.
The initial objective of the programme was to support business and job survival. The programme also had the objective to support the employment relationship and continue the financial help required. However, the labour market is still weak in the process. The system still needs to be financially supported. The government in an initial report stated that the program had fulfilled the initial objectives. Nevertheless, there is a huge need for development. The government announced the support would continue until March of 2021 (Costa Dias, Joyce, Postel‐Vinay & Xu, 2020).
The COVID-19 situation had affected the labour market and it is because of the complete lock down regulation brought in by the government, which did not allow anyone to go out of their house and perform a social activity. The restricted process and the business were hampered substantially (Fernandez-Reino & McNeil, 2020). The process includes the business to submit their reports for loss and the crisis they are facing in order to be eligible for the whole process. The programme is an initiative to rejuvenate the economic model of the country and brings out the business to light, which has suffered financial loss during the pandemic situation.
(b)
The monthly data collected from the Australian Statistical Bureau states that there has been a steady rise in the employment rate in recent times. The employment rate has suffered a lot since the first quarter of 2020 (Australian Bureau of Statistics, 2020). The employment rate has gone down considerably during the lockdown period. There have been less working hours in the business environment during the second and the third quarter of 2020.
Due to the pandemic situation, the Australian labour market has seen a dip in the employment rate. The current employment rate stands at 61.6%. This way the unemployment of the population has decreased in the current scenario by 6.8% (Rainnie, 2020). The monthly hours worked also increased by 43 million hours in November 2020. The same scenario was not there when the country was hit with the pandemic situation.
	Data 1: Employed, October 2020 - November 2020, Original ('000s)
	
	
	October 2020
	November 2020
	Contribution to the movement in the estimate of employed persons
	Matched common sample
	10407.3
	Matched common sample
	10622.5
	Contribution to employment from the matched common sample
	215.2
	Unmatched common sample
	661.1
	Unmatched common sample
	665.1
	Contribution to employment from the unmatched common sample
	4.0
	Outgoing rotation group
	1688.6
	Incoming rotation group
	1621.5
	Contribution to employment from change in rotation groups
	-67.1
	Total
	12756.9
	Total
	12909.0
	Movement (October 2020 - November 2020)
	152.1
	Data 2: Unemployed, October 2020 - November 2020, Original ('000s)
	
	
	October 2020
	November 2020
	Contribution to the movement in the estimate of unemployed persons
	Matched common sample
	722.5
	Matched common sample
	688.4
	Contribution to unemployment from the matched common sample
	-34.1
	Unmatched common sample
	64.9
	Unmatched common sample
	65.6
	Contribution to unemployment from the unmatched common sample
	0.7
	Outgoing rotation group
	122.1
	Incoming rotation group
	123.4
	Contribution to unemployment from change in rotation groups
	1.4
	Total
	909.5
	Total
	877.5
	Movement (October 2020 - November 2020)
	-32.0
	Data 3: Not in the labour force, October 2020 - November 2020,

Answer two (2) questions. Maximum of 1000 words for each question. Use diagrams where appropriate to enhance and explain your response. Provide supporting evidence and references where appropriate to...

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