Assessment Details and Submission Guidelines
School
School of Business
Course Name
Bachelor of Business
Unit Code
BB106
Unit Title
Principles of Economics
Assessment Author
Pu Chen
Assessment Type
Group Assignment
Assessment Title
Group Assignment
Unit Learning Outcomes covered in this assessment
a. Demonstrate their understanding of fundamental problem of scarcity facing in an economy.
c. Apply the macroeconomic concepts such as economic growth, Gross Domestic Product, business cycle, unemployment, inflation, aggregate demand – aggregate supply model and government policies.
d. Explain the importance of economic models and key assumptions in economics.
e. Apply economic models and assumptions to analyse a given situation and/or media articles on economic issues.
Weight
25%
Total Marks
50
Word limit
Max. 2000
Release Date
Week 8
Due Date
Week 10
Submission Guidelines
· All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page.
· The assignment must be in MS Word format, 1.5 spacing, 11-pt Cali
i (Body) font and 2 cm margins on all four sides of your page with appropriate section headings.
· Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA or IEEE referencing style for School of Business and School of Information Technology and Engineering respectively.
Extension
• If an extension of time to submit work is required, a Special Consideration Application must be submitted directly to the School's Administration Officer, in Melbourne on Level 6 or in Sydney on Level 7. You must submit this application three working days prior to the due date of the assignment. Further information is available at:
http:
www.mit.edu.au/about-mit/institute-publications/policies-proceduresand-guidelines/specialconsiderationdeferment
Academic
Misconduct
• Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http:
www.mit.edu.au/aboutmit/institute-publications/policies-procedures-and-guidelines/PlagiarismAcademic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description.
Assessment Cover Sheet
Student ID Numbe
s:
Student Surname/s:
Given name/s:
Course:
School:
Unit code:
Unit title:
Due date:
Date submitted:
Campus:
Lecturer:
Tutor:
Student Declaration
I/We declare that:
1. the work contained in this assignment is my/our own work/group work, except where acknowledgement of sources is made;
2. certify that this assessment has not been submitted previously for academic credit in this or any other course;
3. I/we have read the MIT’s Plagiarism and Academic Misconduct Policy Procedure, and I/we understand the consequences of engaging in plagiarism;
4. a copy of the original assignment is retained by me/us and that I/we may be required to submit the original assignment to the Lecturer and/or Unit Co-ordinator upon request;
I/we have not plagiarised the work of others or participated in unauthorised collaboration when preparing this assignment.
MIT ID
Signature
Date
Assignment Description
Using the principles of economics covered in learning materials from week 1 to week 10 inclusive, students should apply their knowledge of economics to analyse the macroeconomic issues and the policy responses to the impact of COVID 19 on the Australian economy. Students are expected to conduct some basic research and to reference journal articles, professional websites and other sources in the process.
Impact of COVID 19 on the Australian economy
The outlook for the Australian and global economies is being driven by the COVID-19 pandemic. The necessary social distancing restrictions and other containment measures that have been in place to control the virus have resulted in a significant contraction in economic activity, but economic conditions will improve as the pandemic is
ought under control and containment measures are relaxed.
Global GDP fell sharply in the first half of 2020. The declines in the March quarter were driven by a contraction in Chinese and euro area activity as well as the rollout of containment measures elsewhere late in the quarter. A further fall in global GDP the June quarter, with many countries expected to record quarterly declines in GDP.
The Australian economy recorded a contraction in GDP of around 7 per cent over the first half of 2020; total hours worked declined by around 17 per cent and the unemployment rate rose to around 7 per cent in October 2020. Inflation rate was 0.7 per cent in the September quarter 2020.
ABS data show that employed people were XXXXXXXXXXin September 2020, and XXXXXXXXXXin October 2020 respectively; unemployed people were XXXXXXXXXXin September 2020 and XXXXXXXXXXin October 2020. The participation rate was 64.9.0% in September 2020 and 65.8% in October 2020.
Fiscal Policy Responses
Since the onset of the pandemic the Federal Government has provided $257 billion in direct economic support which is roughly 13% of the annual GDP in 2020. The fiscal response consists of $39 billion directly to business, $25 billion to households and the $130 billion Job-Keeper payment to support business and households through the COVID-19 shutdown.
Monetary Policy responses
The Reserve Bank of Australia has reduced the cash rate to 0.1% which is the historical low record. More details can be found at https:
www.
a.gov.au/covid-19
Outcome
The Australian economy performing better than expected. Despite the fall of GDP by a record 7 per cent in the June quarter and over 2020, and a decline by around 4 per in 2020. In the RBA's is expecting expecting a growth of 5 per cent next year and 4 per cent over 2022. More details please see
See: https:
www.
a.gov.au/speeches/2020/pdf/sp-gov XXXXXXXXXXpdf and
https:
treasury.gov.au/speech/policy-and-evolution-uncertainty
Assessment Tasks
1. Calculate the working age population, the labour force, and the unemployment rate for December 2020 and March 2021 respectively. Source: https:
www.abs.gov.au/statistics (10 marks)
2. According the data detailed in the case study, illustrate and explain the impact of COVID-19 on the Australian economy in an ADAS model. (10 marks)
3. Summarise the fiscal response of Australian government to COVID 19 and use AD-AS model to illustrate the fiscal policy responses of Australian government and describe the objective the fiscal policy. (10 marks)
4. Assuming the marginal propensity to consume is 0.8, calculate the multiplier effect of the fiscal policy response package of $194 billion. Do you think the realised policy effect will be as big as that you calculated? Elaborate your answers. (10 marks)
5. Summarise the monetary response of RBA to COVID 19 and use AD-AS model to illustrate the monetary policy responses of RBA and describe the objective the monetary policy. (10 Marks)
BB106 T1 2020 Economic Principles 2
BB106 T1 2021 Economic Principles 5
Lasted Updated: April 2020
Lasted Updated: March 2021
BB106 Principles of Economics
Marking Guide: Group Assignment Report
Student Name: ________________ Student Number: __________________
Student Name: _________________Student Number: __________________
Student Name: ________________ Student Number: _____________________
Student Name: _________________Student Number: _____________________
Questions
Marks
Mark Range
1. Using a diagram, illustrate and describe the trend of Australian GDP since 1991.
10
· Less than two co
ect numbers
· Tow to three numbers are co
ect
· Tow pairs are co
ect
· Co
ect calculation of all 3 pair of numbers
Actual mark
0-2
3-5
6-8
9-10
Comments
2. Using the AD-AS framework and discuss the impact of CVID 19 on the economy
10
· Poor explanation and no critical analysis of the factors
· Poor or no application of economic theory/concepts
· No example(s) are provided
· Basic explanation and no critical analysis of the factors
· Average
elow application of economic theory/concepts
· Very little or inappropriate example(s) are provided
· Detailed explanation and little critical analysis of the factors
· Good application of economic theory/concepts
· Example(s) are provided to support the argument
· Clear and detailed explanation and critical analysis of the factors
· Excellent application of economic theory/concepts
· Appropriate example(s) are provided to support the argument
Actual mark
0-2
3-5
6-8
9-10
Comments
3. Fiscal policy responses
15
· Not meeting the higher criteria
· Co
ect identification of the fiscal policy on the AD side.
· Co
ect usage/labelling of diagrams in explanation.
· Co
ect identification of the fiscal policy on the AD side as well as on the AS side
· Co
ect usage/labelling of diagrams in explanation.
· Co
ect identification of the fiscal policy on the AD side as well as on the AS side
· Excellent explanation/analysis of how the factors contribute to the cu
ent prices.
· Co
ect usage/labelling of diagrams in explanation.
· Discussion of cu
ent falling prices and showing contrarian views and contain critical analysis.
XXXXXXXXXXActual mark
0-2
3-5
6-8
9-10
4. Calculation of analysis of the multiplier process
Not meeting the higher criteria
· Co
ect calculation of the multiplier effects.
· explanation/analysis of the multiplier process.
· Co
ect calculation of the multiplier effects.
· Excellent explanation/analysis of the multiplier process.
· Co
ect calculation of the multiplier effects.
· Discussion on the effectiveness of the fiscal policy
Comments
5. Type of monetary policy used and how it will influence the Australian economy. Discuss whether the policy will be successful.
15
· Inco
ect identification of expansionary monetary policy
· A poor and inco
ect description of transmission mechanism and its impact on national output
A poor and inco
ect discussion of the policy constraints
· Co
ect identification of expansionary monetary policy
· Basic and incomplete description of transmission mechanism and its impact on national output
· Basic explanation of the policy constraints and limitations.
· Co
ect identification of expansionary monetary policy
· Good explanation of transmission mechanism and its impact on national output
· A good discussion of the policy constraints and limitations.
· Co
ect identification of expansionary monetary policy
· Excellent explanation/analysis of transmission mechanism and its impact on national output
· A very good discussion of the policy constraints and limitations.
· Elements of critical analysis