Microsoft Word - SIM Macro Assessment 2 - Task instructions.docx Copyright RMIT University 2022 1 This is an official university assessment document. Dissemination, circulation or sharing in any form...

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Please kindly refer to the attached file and do accordance with the requirement. You only need to do the unemployment portion. The country should be with reference to ***Singapore***!


Microsoft Word - SIM Macro Assessment 2 - Task instructions.docx Copyright RMIT University 2022 1 This is an official university assessment document. Dissemination, circulation or sharing in any form (including uploading this document onto online platforms) has not been authorized and is strictly prohibited. Detection of the availability and usage of online versions of this document will be investigated as a matter of a breach of academic integrity. ECON1016 Macroeconomics 1 Assessment 2 Policy Brief “Analysing the impacts of economic crises” The purpose of this assignment is to demonstrate your understanding of the key concepts we have learnt in class and apply it to real world scenarios. Please follow the steps of the tasks below. 1) Task It is useful to look at fluctuations in macroeconomic indicators during major crisis events so that we learn from the past and design appropriate policy responses in future crises. This task requires you, as a group, to analyse the fluctuations of macroeconomic indicators for a country during the Global Financial Crisis (GFC) and during the COVID-19 Pandemic, and to compare the two events. To prepare for this task, you will need to clarify the time period that is under analysis. Within your group, you should clarify your understanding of when the GFC began and ended. You will need to collect data for several years preceding the start of the GFC, so that you can show the impact of this crisis event. To achieve this, we advise that you start your data series from the year 2000, up to the most recent time period available. You can ask your Lecturer/Tutor for guidance on this during your class sessions. 1) Choose one country: Australia or Singapore 2) Confirm the years of data that you will need to gather so that you can discuss the impacts of the GFC and the COVID-19 pandemic. 3) Source macroeconomic data for your country for the following indicators. You should ensure that you are sourcing your data from a credible statistical authority and cite your data source in your report. a) Real GDP growth rate b) Inflation rate c) Unemployment rate 4) Once you have sourced your data for each of the three macroeconomic indicators, convert This is an official university assessment document. Dissemination, circulation or sharing in any form (including uploading this document onto online platforms) has not been authorized and is strictly prohibited. Detection of the availability and usage of online versions of this document will be investigated as a matter of a breach of academic integrity. Copyright RMIT University 2022 2 the data into a graph using the Excel chart function. You should produce 3 graphs in total. You should be sure to include all necessary elements on your chart: o chart title o horizontal and vertical axis titles o units of measurement o country of analysis o time period under analysis o data source Your choice of chart type should be appropriate to the data that you are illustrating. After you create your chart in Excel, you should copy and paste it into your Word template. You can copy it as an Excel chart or as an image. Be sure to retain a copy of your Excel spreadsheets for reference. You may be asked to provide evidence that you have sourced the data and created these graphs yourself. Do not be concerned if the data gets updated after you have downloaded your data. You can include the “date accessed” when you cite your data source. 5) Written analysis – To accompany your graphs, provide a clear written explanation that addresses the following topics and questions below. Follow the headings of each section, which are also provided in your template document Here are the questions and specific tasks that you need to answer for the content of your Policy Brief: Executive Summary (350-400 words) Provide a bullet list of 5 key sentences that sum up the most useful insights of your policy brief: • What useful information does your Policy Brief offer your readers? • Which country’s economy and what crisis events are you analysing? • What are the key findings of your analysis: Which crisis event had a more profound impact on your country’s economy? • Why should policymakers be concerned about unemployment and inflation? • What is your assessment of the country’s prospect for economic recovery from the COVID- 19 pandemic? 1. Business cycle (250 words) This is an official university assessment document. Dissemination, circulation or sharing in any form (including uploading this document onto online platforms) has not been authorized and is strictly prohibited. Detection of the availability and usage of online versions of this document will be investigated as a matter of a breach of academic integrity. Copyright RMIT University 2022 3 a) To equip your reader with necessary background information, provide a brief explanation of the macroeconomic concept of the business cycle and explain the four phases of the business cycle. Clearly mention which macroeconomic indicator is used to track the phases of the business cycle. b) Provide a simple diagram that illustrates these four phases. For illustrative purposes, this conceptual diagram can be stylized and simplified (that is, it does not need to be based on real data). c) According to macroeconomic theory, explain what is expected to happen to the macroeconomic indicators of unemployment and inflation at these different stages of the business cycle. 2. Real GDP growth rate (400-450 words) a) Provide a clear definition of Real GDP and the formula that economists use to calculate the Real GDP growth rate. Provide a brief comment on why economists use Real GDP as a measure of economic activity. b) Acknowledge what are some of the limitations of using GDP as a measure of economic prosperity and wellbeing. c) Using data on the Real GDP growth rate for your country of analysis, present your graph for this data and look for the ways that this indicator has fluctuated over time. d) Referring to your graph, describe the impact of the GFC and the COVID-19 pandemic on the country’s economic growth rate. You should aim to identify the different stages of the business cycle as they occur in your graph. When identifying the contraction phase of the business cycle, provide the technical definition of a recession (as per the standard definition that we have learnt in class) and note whether any of the contraction periods that have occurred in your country since 2000 would be classified as a recession. e) Consider the contractionary periods that occurred during the GFC and at the COVID-19 pandemic in your country. Based on the Real GDP growth rate, describe how these two crises compare in terms of severity and duration of the contractions that occurred. Which crisis was more severe (a steeper rate of decline)? Which crisis was longer in duration (a longer amount of time to restore the economy to positive growth rates again)? 3. Unemployment (400-450 words) a) Provide a clear definition of the unemployment rate and the formula that economists use to calculate the unemployment rate. b) Provide a brief comment on why unemployment is a concern for policymakers. In your answer, think about the implications of unemployment for people’s wellbeing. c) Using data on the unemployment rate for your country of analysis, present your graph for this data and look for the ways that this indicator has fluctuated over time. d) Referring to your graph, identify what happened to the unemployment rate in your This is an official university assessment document. Dissemination, circulation or sharing in any form (including uploading this document onto online platforms) has not been authorized and is strictly prohibited. Detection of the availability and usage of online versions of this document will be investigated as a matter of a breach of academic integrity. Copyright RMIT University 2022 4 country of analysis during the GFC and the COVID-19 pandemic. Describe how two crises compare in terms of the impact on the unemployment rate? Consider the severity of fluctuations in the unemployment rate (that is, the steepness of these fluctuations and how high the unemployment rate reached) and the duration of these fluctuations (how long did it take for the unemployment rate to be restored to pre-crisis levels?). e) Explain what happens to the unemployment rate if discouraged jobseekers give up looking for work or if workers can no longer work because they need to look after their children and other family members? To account for these types of labour force dynamics, what is another macroeconomic indicator that you would recommend that economists should also closely monitor alongside the unemployment rate? 4. Inflation (400-450 words) a) Provide a clear definition of what is meant by inflation and the formula that economists use to calculate the inflation rate? Within your answer, explain what index is used to calculate the inflation rate. b) Provide a brief comment on why inflation is a concern for policymakers. In your answer, think about the implications of inflation for people’s wellbeing. c) Using data on the inflation rate for your country of analysis, present your graph for this data and look for the ways that this indicator has fluctuated over time. d) Referring to your graph, identify what happened to the inflation rate in your country of analysis during the GFC and the COVID-19 pandemic. Describe how two crises compare in terms of the impact on the inflation rate? Consider the severity of fluctuations in the inflation rate (that is, the steepness of these fluctuations and how high the inflation rate reached) and the duration of these fluctuations (how long did it take for the inflation rate to be restored to pre-crisis levels?). e) Explain whether there are any situations where people might benefit from unexpectedly high inflation? Explain whether policymakers should be aiming for deflation instead of inflation? 5. Economic policy challenges (450-500 words including bullet points) Use your knowledge of the Aggregate Demand (AD) and Short-Run Aggregate Supply (SR-AS) Model to analyse the macroeconomic changes that occurred in the country’s economy during these major economic crises. You need to think about the factors that cause either the AD or the SR-AS function to shift. For each of the following scenarios, provide a clear AD-AS diagram that illustrates the effect of this macroeconomic change. For simplicity, you should assume that your economy begins at long-run equilibrium
Answered 1 days AfterMar 23, 2022RMIT University

Answer To: Microsoft Word - SIM Macro Assessment 2 - Task instructions.docx Copyright RMIT University 2022 1...

Komalavalli answered on Mar 24 2022
97 Votes
a)
The unemployment rate is the proportion of the labor force that is out of work. It is a lagging indicator, which means
that it rises and falls in response to changes in economic conditions rather than forecasting them. Unemployment is likely to grow when the economy is in poor health and jobs are scarce. When the economy is growing at a good rate and employments are plentiful, it is more likely to contract.
Uneemployment rate = unemployed /civilian labor force
b)
Unemployment produces stress, which has long-term physiological repercussions on health and can have a detrimental impact on people's mental health, including depression, anxiety, and poor self-esteem.
Unemployment issues generate poverty issues. The government is undergoing an additional borrowing burden because unemployment leads to reducing the production and consumption of people's goods and services. Unemployed people can easily be seduced by social-opposition factors.
c)
d)
During the Global financial crisis the unemployment rate peaked to near 6% in 2009, then it came down back to pre crisis level during 2012 .During covid crisis the unemployment rate is 4.1% and it is taking time to lower the rate.
e)
The unemployment rate...
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