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Australia unveils $11.4 billion stimulus to curb coronavirus impact Despite only affecting about 120 people in Australia so far, economists are expecting the widening epidemic to cause a recession in...

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Australia unveils $11.4 billion stimulus to cu
coronavirus impact
Despite only affecting about 120 people in Australia so far, economists are expecting the widening epidemic to cause a recession in the second quarter.
Last Updated: Mar 12, 2020, 08.05 AM IST
SYDNEY: Australia's government said on Thursday it would pump A$17.6 billion ($11.4 billion) into the economy to prevent the coronavirus out
eak from pushing the country into its first recession in nearly 30 years.
The country's first stimulus package since the 2008 global financial crisis, which helped Australia avert a recession then, illustrates the lengths the government will take to pare the economic impact of the out
eak. Despite only affecting about 120 people in Australia so far, economists are expecting the widening epidemic to cause a recession in the second quarter.
The package will subsidise the wages of 120,000 apprentices, offer one-off cash payments for welfare recipients and deliver payments of up to A$25,000 ($16,160) for small businesses, Prime Minister Scott Mo
ison said at a news conference in Canbe
This is a comprehensive, a well-thought-through, a well-targeted plan, which is designed to support the Australian economy and jobs and businesses through the difficult months ahead," Mo
ison said.
ison said more than 6 million welfare recipients, notably pensioners and unemployed citizens will get a one-off cash payment of A$750 from March 31.
Speaking with the Prime Minister, Australia's Treasurer Josh Frydenberg said the bulk of the package will be spent immediately, offering a boost of up to 1.5 percentage points to the economy in the second quarter.
The package won't super-charge the economy. Neither does it guarantee that the economy won't slip into recession. But it is a good first step," said Craig James, chief economist, Commonwealth Bank of Australia.
Ratings agency S&P said on Wednesday it expected Australia to fall into recession in the first half of 2020, but the government's strong fiscal position allowed for stimulus without threatening its 'AAA' credit rating.
Even with the relatively small number of cases, local health officials are struggling to contain the virus, prompting Mo
ison on Wednesday to pledge A$2.4 billion to support the health system during the out
The emergency spending package, parts of which will need parliamentary approval, likely ends Mo
ison's hopes of delivering Australia's first budget surplus.
However, the package did not reduce market nerves, with the ASX 200 falling by 3 per cent after it was announced and then falling by more than 5 per cent after the United States announced a ban on European travel.
The spending was announced after the World Health Organization described the coronavirus out
eak as a pandemic for the first time on Wednesday.
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HC1072 Economics and International Trade T2 2020
Assessment Details and Submission Guidelines

Trimester T1 2020
Unit Code HC1072
Unit Title Economics and International Trade
Assessment Type Individual Assignment
Assessment Title Economic Analysis of the Australian Market
Purpose of the
assessment (with ULO
To complete this assessment, students are required to:
1. Develop a
oad understanding of the principles of macro and
microeconomics in an economy.
2. Analyse economic environment nationally and internationally and its
influence on business and national economic performance.
3. Critically analyse government’s fiscal and monetary policy and their
influences on the economy and business in general.
4. Comprehend how economies benefit from international trade.
5. Synthesize theoretical and practical knowledge of economics for
application in work-life situations.

Weight 40 % of the total assessments
Total Marks 40
Word limit No more than specified in each section in the detailed task list
Due Date XXXXXXXXXXMicroeconomic Analysis 5pm Friday 11 Sep 2020, Week 8
Online Presentation – to be scheduled starting from Week 10
Macroeconomic Analysis 5pm Friday 09 Oct 2020, Week 12
 All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
 The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page
 Reference sources must be cited in the text of the report, and listed appropriately
at the end in a reference list using Harvard referencing style.
 Submitted work should be your original work showing your creativity. Please ensure
the self-check for plagiarism to be done before final submission in accordance with
SafeAssign Student Guide in Black Board. As a guide, a similarity score of over 20%
is considered as excessive except in the cases where the similarity is caused by the
use of template provided by the lecturer, references or sources of data. Please note
that it can take 48 hours for the self-check report to be available for your viewing.
 You are required to submit the assignment at HC1072
Assignment Information and Submission link on Black Board. There are 3 separate
links for your 3 tasks. Always keep an electronic copy until you have received the
final grade for the Unit. Please make sure that you submit the co
ect file. Any
appeal relating to submitting wrong files after the deadline will not be
HC1072 Economics and International Trade T2 2020
Page 2 of 11

Assignment Specifications
Assignment Tasks

The assignment task is a written analysis of any published article regarding the Australian Market
(newspaper, magazine or website) from 01 Jan 2020 and onwards. Your task is not to research and
provide data. You are instead ask to analyse an event using your knowledge of economic principles.
You will be required to apply the economic concepts you have learned in class to interpret events
eported in your article.

Task 1: Choose your article. The first come, first served rule will apply. No two persons can use the
same article for the assignment. Register your article by sending an email to XXXXXXXXXX.
Your email should state:
a) HC1072 Individual Assignment by Name, Student ID
) Article Name/Title
c) Date Published and Autho
A response will be sent. It will indicate, APPROVED or NOT APPROVED. Do not start your work unless
you have the email response.

Task 2: Ensure that a full printed copy of your article is saved as part of the Appendix of your paper.
Deductions will be applied if the printed copy is not provided.

Task 3: Microeconomic Analysis (Part 1) – for submission on Week 8
In this part of your assessment, you will analyse the event reported in your chosen article based on
microeconomic concepts learned in class. Ensure that you have the full print out of the article in the
Appendix of your paper.

Task 4: Individual Online Presentation (Part 2) –to be scheduled starting Week 10
In this part of your assessment, you will summarise in an online presentation, all your findings from
your analysis. This applies for both microeconomics and macroeconomics. You can still finalise your
written paper afterwards but here you will ve
ally report your findings. Your presentation should
e for a minimum of 5 minutes and maximum 10 min. You will be required to show your face, state
your full name and student ID clearly at the start of the presentation. Voice over is allowed with
powerpoint slides afterwards. But remember, we will match your voice and photo for identity
checks. Details on how to register for an online presentation will be discussed by your Lecture
Coordinator in the Weekly Drop In Sessions for HC1072. It is important that once you receive your
scheduled time, you ensure you have strong internet connection for this day and time. The lecturer
will be asking relevant questions. Your marks will depend on your answers which should indicate the
level of your understanding and analysis. Inability to answer questions and stating facts not on your
written paper may indicate that you did not undertake the analysis on your own. This may affect the
marks on your written paper which can be marked down with penalty or if proven to be academic
misconduct, marked to zero.

Task 5: Macroeconomic Analysis (Part 3) – for submission on Week 12
This is your final paper and should include both Microeconomic (Part 1) and Macroeconomic Analysis
(Part 2) and the full print out of the article in your appendix.

Refer to the below table for the specific task details and some guide questions for your analysis.
HC1072 Economics and International Trade T2 2020
Page 3 of 11

Assignment Structure should be as the following:

Requirement/s and Guide Questions
Event/Product/Company Description (3 marks, up to 250 words)
a) Elaborate on the event being reported in your chosen article. Why did you choose to
analyse this event?
) What are the products and services being sold? What is the significance to the
Australian Economy of the product/service?
c) Who are the parties involved? Identify who is the supplier and who is the consumer
in the event.
Microeconomic Analysis (Part 1)
Demand and Supply (4 marks, up to 600 words)
In this part of your paper, you are required to discuss the Demand and Supply interactions.
a) What are the Determinants of Market Demand for your chosen event? How do these
determinants affect Total Demand?
) What are the Determinants of Market Supply for your chosen event? How do these
determinants affect Total Supply?
c) Who has power in the market? Analyse any shortage or surplus situation, if
d) Characterize the elasticity of the product being analysed. Who bears the cost of any
price increase?
Industry Description and Market Structure Analysis (4 marks, up to 400 words)
a) Characterize the size of the industry and the level of competition.
) Identify the Market Structure in the industry. Discuss how market structure
influences the prices in the industry.
c) Identify the regulato
s of the industry. Comment on the extent of the regulator’s
power to ensure compliance within the industry.
Answered Same Day Jul 22, 2021 HC1072


Komalavalli answered on Jul 26 2021
106 Votes
Demand and Supply
a) Determinants of market demand for goods and services during out
eak of corona virus are Income of the people, Price of goods and services, Preference of consumer.
Income of the people: Several people lost their jobs due to lockdown imposed by Australian government to control the spread of corona virus. This leads to lack of income among several individual. Decrease in income will cause decrease in demand for goods and services.
Price of goods and services: The event will cause price of necessary goods such as food, mask and medical equipment to increase due to mismatch between supply and demand in the market, whereas price for other goods and services such as car, clothing etc will fall due to lack of demand in these markets.
Preference of consumer: Consumer preference shifted towards food and medical equipments due to the out
eak of corona virus.
Consumer preferences shift towards personal protective equipment purchase even though there is a fall in real income and increase in price of the product. Therefore total demand for personal protective equipment increases during corona virus out
) Determinants of market supply for goods and services during out
eak of corona virus depends on the expectation of demand for their products, price of inputs, number of suppliers, government policies and regulations.
Expectation: Producers will increase their supply when they predict their demand for their product might increase in near future. They will decrease their supply when they predict their demand for their product might decrease in near future
Price of inputs: If input price decreases the producer will increase their supply and reduce their supply when input price increases.
Number of supplier: Increase in number of supplier will lead to increase in product supply whereas decrease in supplier leads to decrease market supply of output.
Government policies and regulations:
If the policies favour the production such as tax cut, providing subsidies will increase the supply of output whereas unfavourable policies and tight government regulations will lead to decrease in supply of output.
Medical equipment producers expected the demand for those product increases, price of labor inputs (wage) decreases as there are large number of people left unemployed due to lack of business activities in the economy. Supplier in this industry increases compared with the situation before the out
eak of corona virus. Government policies are favored towards the production of medical equipments. Therefore total market supply of medical equipment production increases.
c) There is an urge for personal protective equipment like protective mask, surgical gowns etc among people and government in order to take care COVID affected patients and to prevent other people from getting affected by this disease. Due to this situation supplier has more market power compared to consumer. Cu
ently demand for medical equipments is higher in the nation. Productions of these equipments are slow due to destruction in supply chain of raw materials. Therefore there is shortage in supply of medical equipment in the country.
d) A product is said to be inelastic demand when an increase in price does not affect the demand for product in greater manner. In order to protect people themselves from corona virus or to recover from COVID 19 they have to depend on personal protective equipments. So i
espective of price of this personal protective equipment people tend to buy them to protect themselves. Hence the price elasticity demand for personal protective equipment is said to be inelastic. In this...

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