Reference no: EM132363329

Article - Weak jobs situation calls for more RBA, government action to lift economy

Qu. 1(a) Use the aggregate expenditure (AE) model to outline the potential effects of "recently delivered income tax cuts and reduction in interest" on economic output and (un)employment. In your answer, make sure to discuss the linkages in stimulating change and the equilibrating process of moving to a new macroeconomic equilibrium output.

Qu. 2(a) What is meant by the term ‘full employment' in the statement, "the budget stimulus rolled out thus far needs to be tripled if full employment is to be reached". In your answer, explain whether this means zero unemployment.

Qu. 2(b) Use the static AD-AS model to describe the situation where the budget stimulus is triple the amount as advocated by the chief economist of Goldman Sachs on macroeconomic equilibrium output and (un)employment. In your answer outline your assumptions.

Qu. 3 Use the dynamic AD-AS model to describe a longer run scenario where the government is trying to achieve full-employment through a variety of stimulus measures but were incorrect in their estimation of the major parameters determining long run full employment equilibrium.

In your analysis, discuss the implications of an incorrect prediction by the government in effecting their policy on equilibrium output and (un)employment.

AIMS AND OBJECTIVES OF MACROECONOMICS ASSIGNMENT

The assessment is primarily designed to advance your understanding and application of economic theory to real world situations. Particular attention is given to using particular models (i.e. AE model and static/dynamic AD/AS models) to analyse real world scenarios.

ASSESSMENT CRITERIA

Judging the quality of submitted material requires some judgment by academic staff. Rather than a simple formulaic approach, markers combine a number of elements to judge the quality of an assignment. In broad terms, assessment of your assignments will take into account: Relevance of your answer to the question (Did you answer the question?)

Did you use a model and graphical representation to analyse the question? Clarity of expression (Is it written well?)

Logical planning and sequence (Does the argument make sense?) Did you provide theoretical support for the arguments used?

Was the question answered fully or only in part?

Where appropriate, were sources properly cited and referenced?

Overall presentation, including correct grammar, spelling and punctuation (Is the presentation of professional quality?)

Attachment:- Macroeconomics Assignment.rar