economics assignment

This assignment is intended to enable you to demonstrate effective use of some of the fundamental methods and tools of macroeconomics and to apply elementary principles and models in the respective context of the questions. You are expected to communicate effectively using appropriate economics terminology and models, in the form of diagrams which should be incorporated into your discussion.

Although you can discuss answers with your class mates, the answers provided to the assignment must be your individual work. Plagiarism and copying off other students will be heavily penalised.

The total marks in the assignment are 20 marks. This will be reduced to 10 marks for the purpose of this assessment component.

When submitting the assignment, please ensure that the feedback form is attached with your final work. Also when submitting the assignment please SAVE THE FILE AS YOUR FIRST NAME AND LAST NAME. For example if your name is JOE

Question 1 (10 Marks) – Please illustrate answers with diagrams

1. Consider a macro economy was initially at equilibrium level of real GDP. Using an aggregate demand and aggregate supply diagram or model of the economy, graphically illustrate and discuss the short-run and long-run effects of the following events upon the economy:

(a) A political election campaign is held.

(b) There is an increase in spending on infrastructure.

(c) An increase in international economic turbulence.

(d) Depreciation in the foreign exchange rate value of the economy’s currency.

(e) A fall of business confidence within the economy

Question 2 (10 Marks) – Please illustrate answers with diagrams

Collect an article from an Australian newspaper that relates to the current Australian macro economy. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a description of what the article is actually about and drawing particular attention to relevant macroeconomic theories.

Evner: Forretnings Analyse, Økonomisk Research

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