Question 1 Using data from the Australian Bureau of Statistics (ABS) http://www.abs.gov.au/ collect information on unemployment and inflation rates for Australia over the period 2001 to 2016,...

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Question 1


Using data from the Australian Bureau of Statistics (ABS) http://www.abs.gov.au/ collect information on unemployment and inflation rates for Australia over the period 2001 to 2016, inclusive. Employ annual data. Be explicit and define and provide sources for the data obtained.


Plot on a single diagram the relationship between inflation and unemployment, measuring inflation on the vertical axis and unemployment on the horizontal axis. Comment on whether any relationship exists between these variables and any implications of your findings.



Question 2


Employ the aggregate demand and supply model for the Australian economy, to analyse the consequences for real GDP and the general price level of the following scenarios. Confine your analysis to the use of short-run AD/AS curves. In your response clearly state your assumptions and illustrate your answers with diagrams.


(a) India has placed a 30% tariff on chickpea exports from Australia,
(b) The demand for Australian wine in China has substantially increased,
(c) The federal government plans to spend approximately $5 billion on Snowy Hydro 2.0 to generate more electricity power capacity,
(d) The price of oil, a product Australia primarily imports, fall substantially,
(e) An increase in the immigration intake substantially increases the Australian labour force.

Rationale

The question addresses the following learning outcome:



  • be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.


Marking criteria



Question 1


Learning outcome:be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives. This question requires the collection and analysis of data on unemployment and inflation and an outline of some potential policy implications.


























HighDistinction(85%+)Complete and perfectly accurate collection and analysis of data on unemployment and inflation. An excellent discussion of the resulting implications of the analysis of data. Highly developed skills in expression and presentation of ideas. Provides well-argued articulated statements with excellent supporting evidence.
Distinction(75%-84%)Complete and very accurate collection and analysis of data on unemployment and inflation. A very good discussion of the resulting implications of the analysis of data. Well-developed skills in expression and presentation of ideas. Provides well-argued and articulated statements with very good supporting evidence.
Credit (65%-74%)A mainly complete and accurate collection and analysis of data on unemployment and inflation. A good discussion of the resulting implications of the analysis of data. Some well-developed skills in expression and presentation of ideas. Provides some well-argued and articulated statements with some good supporting evidence.
Pass (50%-64%)A mainly complete and satisfactory collection and analysis of data on unemployment and inflation. A satisfactory discussion of the resulting implications of the analysis of data. Some inconsistency in sentence structure and some expression lapses. Arguments based on limited evidence.
Fail (Less than50%)A mainly incomplete and poor collection and analysis of data on unemployment and inflation. A poor discussion of the resulting implications of the analysis of data. Poor communication of ideas due to careless writing and lack of proof-reading. Little demonstrated evidence of ability to construct clear and coherent arguments.



Question 2
Learning outcome
: be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives. This question requires a thorough understanding of how the aggregate demand and supply model can be used to analyse major economic variables such as real GDP and the general price level in an economy.


























HighDistinction(85%+)An excellent use of the AD/AS model to analyse the provided scenarios.The use of excellent diagrams throughout. A clear and complete statement of assumptions employed in the analysis. Highly developed skills in expression and presentation of ideas. Provides well-argued articulated statements with excellent supporting evidence.
Distinction(75%-84%)A very good use of the AD/AS model to analyse the provided scenarios.The use of very good diagrams throughout. A clear and complete statement of assumptions employed in the analysis. Well-developed skills in expression and presentation of ideas. Provides well-argued and articulated statements with very good supporting evidence.
Credit (65%-74%)A mainly complete use of the AD/AS model to analyse the provided scenarios.The use of good diagrams throughout. A clear and mainly complete statement of assumptions employed in the analysis. Some well-developed skills in expression and presentation of ideas. Provides some well-argued and articulated statements with some good supporting evidence.
Pass (50%-64%)A satisfactory use of the AD/AS model to analyse the provided scenarios.The use of partially complete diagrams throughout. A mainly complete statement of assumptions employed in the analysis. Some inconsistency in sentence structure and some expression lapses. Arguments based on limited evidence.
Fail (Less than50%)A poor and mainly incomplete use of the AD/AS model to analyse the provided scenarios.The use of poor diagrams throughout. A poor and mainly incomplete statement of assumptions employed in the analysis. Poor communication of ideas due to careless writing and lack of proof-reading. Little demonstrated evidence of ability to construct clear and coherent arguments.

Presentation


Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. .


Requirements


APA referencing must be used when citing literature.


This assignment must be submitted through Turnitin.


It is recommended that your name, student ID and page number are included in the header or footer of every page of the assignment.
Further details about submission in Turnitin are provided in On-line submission.

Answered Same DayMay 12, 2020ECO511Charles Sturt University

Answer To: Question 1 Using data from the Australian Bureau of Statistics (ABS) http://www.abs.gov.au/ collect...

Abr Writing answered on May 13 2020
133 Votes
Assignment/Australia data.xlsx
Sheet1
        Year        Unemployement        Inflation
        2001        4.0100002289        4.7101025043
        2002        4.8499999046        2.8616231532
        2003        4.7800002098        3.1152456673
        2004        5.8299999237        3.2
822521416
        2005        5.6300001144        3.7090237628
        2006        5.2399997711        5.0645864184
        2007        4.8600001335        4.9756418408
        2008        4.1300001144        4.5363108542
        2009        5.3000001907        4.9252654731
        2010        4.8200001717        1.0095724323
        2011        4.5599999428        6.184351239
        2012        4.8699998856        2.0551410569
        2013        5.3299999237        -0.1665012661
        2014        5.6199998856        1.4387479491
        2015        5.7199997902        -0.7016616979
        2016        6.0100002289        -0.4137232141
Assignment/Solution 1.docx
Solution 1.
Firstly, conducting the correlation analysis to find the relation between unemployment and inflation in Australia, following is the correlation table-
        Correlations
        
        Unemployment
        Unemployment
        Pearson Correlation
        1
        
        Sig. (2-tailed)
        
        
        N
        16
        Inflation
        Pearson Correlation
        -.548*
        
        Sig. (2-tailed)
        .
028
        
        N
        16
        *. Correlation is significant at the 0.05 level (2-tailed).
Table 1: Correlation Analysis
It can be inferred from the table above that the relation between the two variables that is unemployment and inflation is statistically significant since the significance level (p=0.28) between unemployment and inflation is less than the permissible significance level that is 0.05.
For correlation analysis, Pearson correlation exists between -1 to +1. A value from -1 to 0 presents a negative correlation and a value between 0 to +1 presents a positive relation. A value close to 0 is considered to be weak correlation and close to an extreme that is -1 and +1 is considered to be of strong correlation.
Thus, it can be seen that a negative correlation exists between the two variables since a Pearson correlation value of -0.548 was found to exist. Thus as the value of inflation increases, unemployment decreases. But a value of 0.548 presents a weak correlation.
The Hypothesis considered in the study is as...
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