Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Hi i am desperatly seeking some guidance with this assesment peice of homework, that needs to be completed by the allocated time attached your consideration and effort will be greatly appreciated and...

1 answer below »
Hi i am desperatly seeking some guidance with this assesment peice of homework, that needs to be completed by the allocated time attached your consideration and effort will be greatly appreciated and rewarded.
here are 3 following questions that need to be answered in detail about 500 each questions, alongside are some references to guide you through the homework. A reference list needs to be included aswell.Thank you

Question 1.

What do you understand by the terms ‘inflation’ and ‘unemployment? Identify their main elements and causes. What is the relationship between inflation and unemployment? Use diagrams to answer the question. 6 Marks

Question 2.

Collect and graph for Australia and two other countries values of inflation rate and unemployment rate over the last five years period. 4 Marks

Question 3.

What do these statistics that you have reported in question 2 above, suggest about Australia’s and other two countries performance in controlling inflation and unemployment. Why have these countries had this inflation and unemployment experience? 8 Marks

Presentation and referencing 2 Marks

Here are some suggested websites for the data:

(1)http://www.principalglobalindicators.org

This website is the most authoritative source of data and the most useful and helpful website for your assignment.

Click on “Consumer prices” in the left-hand margin on the webpage. Here you will find data on Australia and many other countries.

Click on “Unemployment rate” in the left-hand margin on the webpage. Here you will find data on Australia and many other countries.

Next to “Principal Global Indicators” on the toolbar, click on “Data Mapper”.

Data Mapper allows you to choose “Consumer prices” (which stands for “Inflation”} for each of the three countries and then plots the data for the past five years as three lines for each country in one graph.

Do the same thing for the “Unemployment rate” for the three countries and plot them in one graph.

Remember, to contrast and compare inflation and unemployment for all three countries, you should have one separate graph on inflation for all three countries and another separate graph on the unemployment rates for all three countries.

(2)http://www.dfat.gov.au/geo/fs/

On this webpage of the Australian Department of Foreign Affairs and Trade (DFAT), click on “Australia” and the other two countries of your choice. For each country there is a factsheet that includes data on inflation for the most recent five years.

One disadvantage: you only get data on inflation, not on unemployment.

(3)https://www.cia.gov/library/publications/the-world-factbook/

On this webpage of the American Central Intelligence Agency (CIA), in the dialog box in the upper right-hand side of the webpage where you are asked to “Select a country or location”, enter “Australia”. Then click on “Economy” and look for entries under “Unemployment rate” and “Inflation”.

Do the same for the other two countries of your choice.

One disadvantage: you only get data on the most recent two years.

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
120 Votes
Question 1.
What do you understand by the terms ‘inflation’ and ‘unemployment? Identify their main elements and causes. What is the relationship between inflation and unemployment? Use diagrams to answer the question. 6 Marks
Inflation refers to a general and persistent rise in the price level, often measured by the CPI (consumer price index). Ina very basic sense, prices rise when there is some imbalance between demand and supply of a good. The imbalance between demand and supply is the principal cause of inflation and can be shown in an AD As approach. The Keynesian economics was the first to recognise that prices can rise consistently due to two main factors:
Demand factors that pull up demand, causing demand pull inflation
Supply factors that reduce supply causing cost push inflation.
COST PUSH INFLATION. Any factor that causes AS to shift upwards, with AD constant will cause price level to rise. There can be many causes of the shift from SRAS1 to SRAS2. Whenever costs rise SRAS will shift upwards. This rise can be traced to many reasons:
1. Rise in input costs: Any increase in the prices of raw materials due to internal or external reasons can spike total costs. External reasons include a rise in global commodity prices such as oil, gas copper and primary agricultural products used in production. Internal reasons range from imbalance in domestic demand and supply due to local reasons like a temporary disruption in transportation or a local area flood/ drought.
2. Rising labour costs: Any wage rise can increase costs and shift up the As curve. Wage rise can be temporary or permanent due to structural and institutional reasons. Salary costs are often co
elated with the economic state -when unemployment is low and the economy is ina boom phase (labour shortages) wages tend to rise
3. Policy measures like higher taxes imposed by the government can cause the final price of a good to increase as producers...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here