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(c) Copyright 2018. King’s Own Institute TRIMESTER 1, 2018: BUS700 ECONOMICS Paired-Assignment 1. General information Assessment Type: Critical Review – 2500 words report - Team (Pair) Research...

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(c) Copyright 2018. King’s Own Institute
TRIMESTER 1, 2018: BUS700 ECONOMICS
Paired-Assignment

1. General information
Assessment Type: Critical Review – 2500 words report - Team (Pair) Research Project
Purpose: To enable students to research, critically analyse and evaluate the
macroeconomic performance of Australia. This assessment contributes to
Learning Outcomes b, c and d.

Value: 20%
Word limit: 2500 Words
Due Date: 11:59pm, Friday 25 May 2018, Week 10
Submission: XXXXXXXXXXSoft copy uploaded to Moodle and Turnitin – Word .doc or .docx
Topic: Evaluation of Macroeconomic performance of Australia and USA.
Task Details: Students will complete a research-based analysis and evaluation of the
macroeconomic performance of Australia 1990 to 2015/16.
2. Students will follow the following procedure:
(1) Obtain data on key macroeconomic indicators: real GDP growth, interest rates (Cash rate),
unemployment rate, consumer price index (CPI), exchange rates, and exports and imports.

(2) Discuss the relationship between Australia’s real GDP growth rate and inflation rate, and real
GDP growth rate and unemployment rate. Is there evidence of the business cycle? Illustrate
your discussion with summary statistics and pairwise graphs of real GDP growth rate –
inflation rate, and real GDP growth rate – unemployment rate.

(3) Discuss the relationship between net exports (i.e., exports minus imports) and the real
exchange rates between USA and Australia. Illustrate your discussion with summary statistics
and pairwise graphs of the real exchange rates and net exports growth.

(4) Discuss the relationship between Australia’s Cash rates and the Federal Reserve Fund’s rates
in USA. Do movements in the Federal Reserve Fund’s rates net drive movements in the Cash
ates? Illustrate your discussion with summary statistics and pairwise graphs of the Cash rates
and the Federal Reserve Fund’s rates.

(5) Based on your summary statistics, graphs and analysis and discussion above, write a short
prediction of the macroeconomic outlook of Australia. Is Australia likely to experience a
ecession or expansion soon?


BUS700 Economics T118 Paired Assignment

2

3. Research requirements, presentation and source of data
3.1 Research requirements: Students need to support their analysis with a minimum of 10
academic journal articles plus the text. Students aiming for a Credit or higher grade will
need to use more sources. Articles should be relevant and recent. Non-academic journal
sources may also may be used, but relevance and validity should be clarified with the
lecture
tutor.

3.2 Presentation: Report format – 2500 words report – in Word.doc or .docx format
Title page, executive summary, table of contents, appropriate headings and sub-headings,
ecommendations/findings/conclusions, in-text referencing and reference list (Harvard –
Anglia style), attachments if relevant. Single spaced, font Times New Roman 12pt, Cali
i
11pt or Arial 10pt.

3.3 Source of Data: Data may be obtained many credible sources, including: (1) abs.gov.au; (2)
a.gov.au; 3) imf.org; (4) http:
databank.worldbank.org/data
eports.aspx?source=
world-development-indicators
4. Other information to note
4.1 This assignment is paired-assignment and students must form a pair (2 people) for the
assignment. One person or more than two-people assignment will not be accepted, unless
permission is granted by lecturer for special circumstances.
4.2 Names and ID numbers of students in the group must be clearly printed on the Assignment
Cover Sheet. A member, who does not contribute to the discussion and assignment, must
e marked as “Not contributed” in a
acket following the student’s name and ID.
4.3 You must follow an appropriate format explained below. Not following appropriate format
will cause a loss of some marks.
• All analytical contents must be clearly typed and printed. Hand-written report will NOT
e accepted.
• Appropriate heading or sub-title of each section must be typed and used.
• You must analyse, explain and show how and why you draw your conclusion.
• You must also draw and include appropriate and relevant graphs and tables together in
your explanation. Draw them using Microsoft Power Point/Word/Excel, NOT hand-
drawn.
4.4 Plagiarism (copying the paper from other group) is a serious violation of copy right. It will
e penalized and attract a VERY heavy loss of marks – “Fail”.
• It is not difficult to identify the contents that are copied from other group(s).
• Make sure your team member does not show your work to another group(s). Both who
show the work and who copy the work will lose their marks heavily and fail in the
assessment.
4.5 Only ONE COPY of the research work from each group is required to be submitted.
4.6 Make sure that the two of you in your group discuss and work together, read and check
everything in the research paper before submission, once completed.

Unit Outline
BUS 700
Date: 12 March 2018
Term XXXXXXXXXXT118)
Marking Ru
ic for BUS700 Economics
Assessment 3: Research Report, Paired-Assignment
Criteria Fail
(0-49%)
Pass
(50-64%)
Credit
(65-74%)
Distinction
(75-84%)
High Distinction
(85-100%)
Knowledge and
understanding of
economic concepts and
theories
(20 marks)
No and/or serious lack of
understanding and
evaluative knowledge of the
asic economic principles,
topic areas, relevant
concepts and theories.
Basic but not sufficient
understanding and
evaluative knowledge of the
key economic principles,
topic areas, relevant
concepts and theories.
Shows some potential to
improve.
Solid understanding and
knowledge of the key economic
principles, topic areas, relevant
concepts and theories, with
easonable depth, some insights
added and an ability to relate
them to practical questions.
Very good understanding and
knowledge with
oader awareness
of the key economic principles,
elevant concepts and theories
elated to a range of topical issues,
with good economic insight and
ability to relate them to a further
ange of practical and real world
questions.
Excellent understanding and
knowledge with great awareness of
the key economic principles,
elevant concepts and theories
elated to a range of topical
economic and para-economic issues
and ability to synthesise seemingly
disparate content, with extended and
deeper economic insight and ability
to explain various economic
phenomena in the real world.
Critical thinking,
analysis and
evaluation

(20 marks)
No/very limited ability to
critically think (reflection,
analysis, synthesis) and
identify what the key issues
are, how to build up logical
arguments for and against,
and how to evaluate
economic issues and
problems in question.
Nothing or little supports for
the analysis required.
Unable to extend journal
articles and/or readings
eyond a summary of other’s
views.
Limited but reasonable effort
made to think critically
(reflection, analysis,
synthesis) and identify key
issues. Demonstrated
acceptable level of
arguments for and against
with some substance. Basic
level of presentation on
different evaluation methods
with application of one of
them for evaluation but does
not sufficiently supports for
the analysis required.
Partially extends journal
articles and/or readings
eyond a summary of other’s
views.

Flexible way of critical thinking
(reflection, analysis, synthesis)
exercised in identifying key
issues. Demonstrated a fair
degree of arguments for and
against with expected level of
substance. Above-average
understanding of different
evaluation methods with
application and comparison of at
least two of them for evaluation.
Strengths and limitations of the
arguments discussed to support
for the analysis required.
Extends journal articles and/or
eadings beyond a summary of
other’s views.
A great flexibility in critical thinking
(reflection, analysis, synthesis)
exercised in identifying key issues.
Demonstrated own interpretation
and critics in establishing arguments
for and against at a considerable
degree. Sufficient understanding of
different evaluation methods with
application and comparison of them
for evaluation of more complicated
issues and problems. Discussion of
strengths and limitations of the
arguments leading to different
finding and implications. Extends
journal articles and/or readings
eyond a summary of other’s views.
Excellent, creative and flexible way
of critical thinking exercised in
identifying key issues. Demonstrated
a great degree of own interpretation
and critics in establishing arguments
for and against in a more
sophisticated manner. Sufficient
understanding of different evaluation
methods and ability to creatively
apply and compare the differences
in evaluating more complicated and
oader issues and problems.
Discussion of strengths and
limitations of the arguments leading
to different finding and implications
in greater details. Extends journal
articles and/or readings beyond a
summary of other’s views.
Reading and Research

(20 marks)
Poor ability to incorporate
theories and principles and a
ange of recent research and
published academic writing
on the topic. No analytical
tools or method employed.

Demonstrates average
ability to incorporate theories
and principles and a range
of recent research and
published academic writing
on the topic. Basic analytical
and methodological tools
employed.
Good ability to incorporate
theories and principles and a
ange of recent research and
published academic writing on
the topic. Clear understanding of
analytical and methodological
tools. Clearly demonstrated
solution approach using graphs,
tables and quantitative method.
Advanced level of ability to
incorporate more detailed theories
and principles and a range of recent
esearch and published academic
writing on the topic. More articulated
methodological and analytical tools
to apply with higher standard of
solution approach substantiated with
more appropriate graphs, tables and
quantitative method.

Outstanding ability to incorporate
more detailed theories and principles
and a range of recent research and
published academic writing on the
topic and seemingly disparate areas.
More sophisticated, structured, clear
and succinct analytical and
methodological tools for analysis.
Originality and creativity of in-depth
analysis
Answered Same Day May 19, 2020 BUS700

Solution

Shivagya answered on May 23 2020
145 Votes
Evaluation of Macroeconomic performance of Australia and USA
Executive summary
The report proceeds to try and understand the cu
ent economic environment in Australia by taking into account various metrics and drawing in comparisons such as the nation’s GDP growth rate, compared to the Unemployment and inflation rates or the net exports from Australia, checking it against the exchange rate of the US dollar.
The key economic factors of the nation are discussed along with their historic movements to be able to identify trends and cyclical behaviours which are indicative of the Business Cycle of Bust and Boom, these are analysed to give recommendations & draw conclusions from the economic conditions on the RBA (Reserve Bank of Australia).
The cash rates of Australia are discussed against the Federal Reserve Rates of the United States, these also take into consideration the recent and historical factors such as the recent lead taken by the United States Federal Reserve System in its Federal Reserve Fund Rates which overtook the Reserve Bank of Australia’s Cash rates which have been maintained constant for nearly 19 months in a row.
The recommendations given and conclusions drawn are strictly the opinions of the researcher and they are to be used only for academic understanding purposes.
Table of Contents
Executive summary    1
Australia’s Real GDP growth rate compared to Unemployment Rate & Inflation Rate    3
Comparing & contrasting the Net Exports of Australia with the Exchange Rates ($)    6
A parallel between Australian Cash rates and the United States Federal Reserve Fund Rates    8
Recommendations & Conclusions    10
References    12
Australia’s Real GDP growth rate compared to Unemployment Rate & Inflation Rate
    
To begin to understand our analysis we start with the comparison of the real GDP growth rate and the unemployment rate. Shared with this report are certain statistics on the real GDP growth rate of Australia and also statistics which pertain to the Australian unemployment rate. From a prima facie glance one can tell the relationship between them. Such as the fall in the growth rate of the GDP in 2009 also mi
ors a spike in the unemployment rate in the same year. A spike in the GDP growth rate as in 2007 is reflective of the lowering unemployment rates in the same and the coming year which also tells us about the duration of the effect of a spike in the growth rate (real GDP). The stabilization of the Australian real GDP growth rate after 2013 is also reflected in the stability of the unemployment rates after 2013. Thus a conclusion can be drawn between the Gross Domestic Product of Australia, which is the net sum of value of all the good and services produced in Australia in a specific time period. (Rateinflation.com. 2018)
    Australia’s GDP-real growth rate (%)
    Unemployment rate (%)
    Yea
    4.3
    7.5
    1999
    4.7
    6.4
    2000
    3.6
    6.3
    2002
    3
    6
    2003
    3.5
    5.1
    2004
    2.7
    5.1
    2005
    2.7
    4.9
    2006
    4.3
    4.4
    2007
    2.3
    4.2
    2008
    1.2
    5.6
    2009
    2.7
    5.1
    2010
    2
    5.1
    2011
    3.6
    5.2
    2012
    2.5
    5.7
    2013
    2.9
    5.8
    2016
    2.2
    5.6
    2017
    Yea
    Historical Consumer Price Index (CPI) - Australia (1999 to 2018)
    Inflation Rate (%)
    1999
    68.4
    1.5
    2000
    71.5
    4.5
    2001
    74.6
    4.3
    2002
    76.9
    3.1
    2003
    79
    2.7
    2004
    80.8
    2.3
    2005
    83
    2.7
    2006
    85.9
    3.5
    2007
    87.9
    2.3
    2008
    91.8
    4.4
    2009
    93.4
    1.7
    2010
    96.1
    2.9
    2011
    99.3
    3.3
    2012
    101
    1.7
    2013
    103.5
    2.5
    2014
    106
    2.5
    2015
    107.6
    1.5
    2016
    109
    1.3
    2017
    111.1
    1.9
As we compare and contrast the real GDP growth rate with the unemployement trends in the same time frame, we see that there are some quite significant mi
ored facts in both graphs such as spike and the drop right before the 2009 depression, which points to the the rise and fall on interest rates with respect to the real GDP rate of growth. The Australian economy should really be bouyed by the stronger and more volumous exports done, adtionally to this the non-mining investment is predicted to grow at a good enough pace which will surely be supported by the slightly loose monetary poicy, growth and growth rate of population, along with the dynamic global enconomy activity. This is despite the point that meager work emplyoyment with needs and the high level of house-hold debt which might continue to pull downt the economy by burdening it. The expected GDP growth rates for the coming two years have been forecasted to be about 2.7 % in 2018 and 2.7 % again in the year 2019. As we monitor the figures closely we see the emeregence of a pattern based on the business cycle between the 2 comparisons drawn. The unemployment rate can be seen to continously fall over the specifiec period with there being smaller spikes or fluctuations which are reflective of the ecoomic conditions in Australia with respect to the US and its own history. The pattern is less consistent yet observable when it comes to the Consumer Price Index fluctutations and the Interest Rates. (Rateinflation.com. 2018)
The understanding one derives from the above data is that the higher unemployment and the Exports and Imports between US and Australia is that the unemployment rates trigger fluctuations in the national output of the country and the effect is partially visibly by the changes in the GDP growth rate (real) and this in turn puts pressure on the government to alter the interest rates to recover or manage these fluctuations to a better degree. The business cycle following the bust & boom with malinvestment in various sectors in federal spending and businesses led to these fluctuations.
(Argy, V.E. and Nevile, J. eds., 2016)
Comparing & contrasting the Net Exports of Australia with the Exchange Rates ($)
    Yea
    Exports ($ billion)
    Imports ($ billion)
    Net exports ($...
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