Reference no: EM131482466

Assignment: Australian Mining Boom

In the 21st century, Australia witnessed an extraordinary mining boom. Explain the impact of the mining boom on the Australian economy.

Here are some things you may consider in your essay:

I. What effect did this have on the economy?

1. Explain how it affected the components of GDP and why.

2. What happened to other macroeconomic variables? Eg interest rates,

Australian dollar (exchange rates), etc.

3. Apply to any appropriate macroeconomic models we cover in this course (in particular, use diagrams):

i. Keynesian Cross model
ii. IS-LM model
iii. Budget line (Government Deficit/Surplus)
iv. Aggregate Demand-Aggregate Supply (AD-AS) model

II. How did the government respond?

1. Fiscal policy
2. Monetary policy
3. Show using diagrams from one of the macroeconomic models.

III. How did this affect the government deficit and debt?

1. Cyclical deficit versus Structural (NED) deficit
2. Apply to Budget line diagram

IV. Independent research: references

In your research assignment, you must clearly but succinctly address each specific point mentioned in the essay topic.

Please use the material available on how to write a good essay on the university website.

Word limit: Maximum 1,500 but shorter is good.