BUECO5903 Business Economics Assignment

Assignment Help Macroeconomics

Reference no: EM132423556

BUECO5903 Business Economics - Macroeconomics Assignment - Federation University, Australia

Choose any five (5) of the following eight (8) questions. All diagrams and direct quotations must be referenced as per the course description specified method.

Question 1 -

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

(a) The imposition of a carbon tax upon local big polluting companies.

(b) An appreciation in the foreign exchange rate value of the economy's currency.

(d) The country's main exports fall in price while the goods the country imports from abroad rise in price.

Question 2 -

2a. State the difference (IN YOUR OWN WORDS) between:

- Absolute advantage and comparative advantage.

- The terms of trade and the exchange rate.

- A demand side shock and a supply side shock.

- A trade surplus and a budget surplus.

2b. State the difference between:

- Uncertainty and risk.

- Between the interest rate and the exchange rate.

- Between a supply side shock and a demand side shock.

- Between a trade deficit and net foreign debt.

Question 3 -

Use the Australian Bureau of Statistics website and perhaps the Reserve Bank of Australia website to answer the following questions: What are the current levels of the following economic indicators in the Australian economy? (Remember these should be expressed in annual terms)

Inflation

Unemployment

Economic growth rate

The cash rate

The Australian dollar exchange rate.

Question 4 -

Use the aggregate demand- aggregate supply diagram model to explain the consequences in terms of price level and real GDP of a decline in aggregate demand as shown by:

(a) Classical economics

(b) Keynesian economics

Why did the classical economists believe the economy would always find equilibrium at full employment and the Keynesians did not?

Question 5 -

Assume an economy operates on the middle part of its aggregate supply curve. State the direction of effect on aggregate demand or aggregate supply for each of the following changes in conditions. What is the effect on the price level, real GDP and employment? Use diagrams in your answer.

(a) The price of crude oil rises significantly.

(b) Spending on welfare and aged pensions doubles.

(d) The Government halves the goods and services tax (GST) on all consumer goods.

(e) The Government announces rises in company tax.

Question 6 -

If you wanted to increase aggregate demand how would you do it for the following:

Consumption demand

Investment demand

Net exports

Which of the three components also has an impact upon the Aggregate supply side of the economy?

Question 7 -

Consider a macroeconomy 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 consequences of the following events upon an economy:

(a) The Central Bank within the economy lifts interest rates.

(b) There is an increase in private domestic investment spending.

(d) An appreciation or rise in the foreign exchange rate value of the economy's currency.

(e) A fall in real estate prices in the capital cities of the country (hint: think of the effect upon people's wealth level).

Question 8 -

Why are quarterly movements in a country's GDP measure so important? What is it called when a country has two successive negative quarters of economic growth? When the economy is heading into a recession what economic policy instruments can the government and the central bank use to prevent this from occurring? Will these instruments work to prevent the onset of recession?

Reference no: EM132423556

Questions Cloud

Describe instance of plagiarism : On the discussion forum, describe an instance of plagiarism or other use of another's intellectual property with which you are familiar.

Analyze which marketing strategies are most prominent : Analyze which marketing strategies are most prominent in specific industries and see how they are useful for the purpose they seek to achieve?

Why holistic attribution is such a challenge for businesses : Give me two examples of things you can do to overcome these challengesWrite a compelling statement to the CEO or CFO of the organization

Blue sky clothing assignment : Blue Sky Clothing Assignment help and solutions:-Project on " Blue Sky Clothing " subject marketing management

BUECO5903 Business Economics Assignment : BUECO5903 Business Economics - Macroeconomics Assignment Help and Solution, Federation University, Australia. Why are quarterly movements so important

Design a software solution to a problem in life : Using tools and concepts learned this week to design a software solution to a problem in your life.flow chart or mind map that documents your solution

Determining income for medicare levy surcharge purposes : Describe how investment losses are treated in determining income for medicare levy surcharge purposes, and income to which the medicare levy surcharge applies

Why its not easily duplicable by the competition : Explain how these core competencies dovetail with your new product or service offering. Upon which competency or competencies will the new business offering

Compute frame check sequence using Cyclic Redundancy Check : Compute the frame check sequence using Cyclic Redundancy Check (CRC) for the following information: Message = 111010110, Pattern = 101110

User Account

All Pages