Assessment 3 Assessment Type: Research Report: XXXXXXXXXXwords report – Individual assessment Purpose: To enable students to research, critically analyse and evaluate the macroeconomic performance of...

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Assessment 3





Assessment Type: Research Report: 1500 - 2000 words report – Individual assessment




Purpose: To enable students to research, critically analyse and evaluate the macroeconomic performance of Australia. This assessment contributes to learning outcomes a, c.




Value: 20% Due Date: Friday Week 10



Submission: One soft copy of the report to be uploaded to Moodle Turnitin – Word .doc or .docx. Topic: Evaluation of the effects of macroeconomic variables on the Australian economy


Task details: Obtain the following macroeconomic data for Australia for the period 1990-2018: real GDP growth rates, unemployment rates, inflation rates, interest rates (cash rates), exchange rates (US$ per A$) and net exports growth rates.





(1) Using the graphs and statistical summaries of the data collected, discuss the relationships between the following variables:



(i) The growth rates of real GDP, inflation rates, and unemployment rates, and


(ii) The growth rates of net exports (exports – imports), interest rates and exchange rates.




(2) Conduct a simple regression analysis to investigate how these macroeconomic variables are likely to influence the growth rates of real GDP in Australia. Discuss the estimated effects.



(3) Given the insights gained from (1)-(2) above, discuss how monetary policies would contribute to the growth of real GDP in Australia? Support your discussion with plausible economic reasons.



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 be used, but relevance and validity should be clarified with the lecturer/tutor.




Report format: 1500 – 2000 words report in Word.doc or .docx. Title page, executive summary, table of contents, appropriate headings and sub-headings, recommendations/findings/conclusions, in-text referencing and reference list (Harvard – Anglia style), attachments if relevant. Single spaced, font Calibri 11pt.



Recommended sources of data are:


o
www.abs.gov.au


o
www.rba.gov.au


o
www.imf.org


o
www.worldbank.org.


o
http://datatopics.worldbank.org/world-development-indicators/





However, data may also be obtained from other credible sources. Also, recommended readings for government policies include:


o Statement on Monetary Policy of the Reserve Bank of Australia for insights of monetary policies in Australia. https://www.rba.gov.au/publications/smp/


o Budget documents for insights of fiscal policies in Australia.


o https://www.budget.gov.au/2018-19/content/documents.html



1. This assignment is individual assessment.


2. Name and ID number of students must be clearly printed on the Assignment Cover Sheet.


3. Students must follow an appropriate format explained below.
Not following appropriate format will cause a loss of some marks.


o All analytical contents must be clearly typed and printed. Hand-written report will NOT be accepted.


o Appropriate heading or sub-title of each section must be typed and used.


o You must analyse, explain and show how and why you draw your conclusion.


o 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.
Plagiarism
(copying the paper from other person) is a serious violation of copy right. It will be penalised and attract a very heavy loss of marks – “Fail”. Make sure you do not show your work to other person(s).
Both who show the work and who copy the work will lose their marks heavily and fail in the assessment.


5. Only ONE COPY of the research paper is required to be submitted.


6. Make sure that you read and check everything in the research paper before submission, once completed.





Marking Guide:




Knowledge and understanding of topic 20%


Critical thinking, analysis and evaluation 20%


Reading and Research 20%


Written presentation 20%


Identify examples, both historical and current,


and make policy recommendations for improvement 20%




Total mark will be scaled to a mark out of 20. A full Marking Rubric is provided below and also available in Moodle.

Answered Same DayAug 25, 2021BUS700

Answer To: Assessment 3 Assessment Type: Research Report: XXXXXXXXXXwords report – Individual assessment...

Komalavalli answered on Sep 12 2021
129 Votes
Evaluation of the effects of Macroeconomic variables on Australian economy
                            Name
                            Student ID
    
Contents
Summary    4
Introduction:    5
Review of literature    5
Macroeconomic Performance of Australian Economy    6
Real GDP growth rate    6
Unemployment Rate    7
Inflation Rate    8
Growth rate of Net Exports    9
Interest rate    10
Exchange rate    11
Multiple Regression analysis    11
Interpretation    12
Monetary policy and Australia economic growth rate    13
Conclusion    14
References    15
Summary
The report focused on evaluating the e
ffects of Macroeconomic variables such as exchange rate, real interest rate, inflation rate, net export, unemployment rate on Australian economic growth through graphical and empirical analysis for the period 1990 to 2018.Emprical analysis is conducted by conducting multiple regression for evaluating the effect of exchange rate, real interest rate, inflation rate, net export, unemployment rate on real GDP growth rate. The result suggests that there is a significant negative relationship between rate of Unemployment, and Net export on Australia’s growth rate.
Introduction:
Performance of Australian economy is identified by the analysing the variables such as Real GDP, unemployment rate and inflation rate. Real Gross domestic product (GDP) tells us about the value of final good and services produced in Australia. Unemployment rate tell us the percent of labor of who are jobless in the nation. High unemployment rate indicates that the nation economic condition is weak while low unemployment rate indicates the nation economic condition is strong. Inflation rate is indicated by consumer price index of an economy. If consumer price index is rising over the period of time indicates that there is inflation in the economy. If consumer price index is falling over the period of time indicates that there is deflation in the economy. Let us evaluate effects of the above Macroeconomic variables on Australian economy for the period 1990 to 2018
Review of literature
Henry and summers (2007) This paper examines the extent to which fluctuation in economic growth of Australia are affected by the domestic and overseas economic performance. Through regression model analysis they found the mechanism which spreads the business cycle to Australian economy was non linear. They also found that large negative shocks are most persistent which led to greater uncertainty in the economy and have large impact on growth rate of Australia’s economy.
Jha and Dang (2011) this paper analyzed the effect of inflation variability and economic growth of developed and developing nation by using secondary data. They conducted the analyzing by using data sets of 182 developing nation and 31 developed nations. Result of econometric model indicates that there was a significant evidence for developing countries and for developed nation there was no significant influence of inflation variability on growth. They found that there is a negative effect of inflation variability on growth when the inflation rate is high; particularly, when the inflation is higher than 10 percent, an increase in inflation is followed by a decrease in growth only when the rate of inflation was stable.
Bhar and Mallik (2012) This study examines the relationship between economic growth, inflation , uncertainty of inflation and growth. They obtained data on Australia from International financial statistics of the international monetary fund for the year 1957 to 2009 and employed multivariate EGARCH model for the analysis. They found that the uncertainty of inflation has significant and negative effect on output growth and inflation and they identified that oil price has significant effect on increase in inflation uncertainty in the nation.
Pandya and Sisombat (2017) paper examines the impact of foreign direct investment (FDI) inflows on economic growth of Australia. They employed time series data of thirteen years which is from 2001 to 2013 for the analysis. Multiple regression were conducted by using those data to determine the relationship between Australia’s economic growth and foreign direct investment flow. The result indicates that the inflow of FDI has positive impact on Australian economy which includes growth in export performance, employment and GDP. They also found that the sector of Mining and quarrying attracts large amount of FDI and contributes to 7 percent of Australia’s GDP.
Hsing (2019) the study analyzed whether expansionary monetary and fiscal policy has impact of on output in Australia. Annual data for the period 1990 to 2018 were used for the analysis .They applied IS LM model in the analysis and included real effective exchange rate and real stock price for analyzing substitution or wealth effect .This study found that expansionary monetary policy increases output and expansionary fiscal policy has negative effect on Australia GDP growth .Output increases when there is a lower expected inflation, a higher real stock price, a lower U.S. interest rate, real appreciation of the Australian dollar.
Macroeconomic Performance of Australian Economy
Real GDP growth rate
From above growth rate of real gross domestic product graph we can say that Australia growth rate decreases from 4 per cent to 0.5 per cent during 1990 to 1993, after that the growth rate of real GDP started to rise till 1999.In...
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