Assignment Task

Purpose After completing the assignment, you will learn how to interpret macroeconomic data using the concepts covered in this unit, which are often applied in real-world policy-making decisions. Additionally, you will apply your analytical knowledge in answering the questions, demonstrating your understanding of the subject material.

This task provides you with opportunities to obtain, present graphically, and interpret macroeconomic data (GLO1 and GLO3 & ULO2). You will be able to describe and apply key macroeconomic concepts in a global context (GLO1 and GLO4 & ULO1). By completing this task, you will develop your skills in researching, understanding, applying, evaluating, and presenting information required of business professionals.

Questions

1. A. For each country, calculate the real GDP growth rate. Plot the real GDP growth rate and the inflation rate series together for all the years in each country separately. Discuss and explain any patterns and relationships between these two data series in each country.

   B. Plot the real GDP growth rate and unemployment series together for all the years in each country separately. Discuss and explain any patterns and relationships between these two data series for all six countries.

   C. Plot the real GDP series, exports series, and imports series together for all the years in each country separately. Analyze and explain any general relationships you observe between the three variables in each country. Based on the data collected, analyze any similarities and differences in the performance of the economies.

2. Refer to the latest monetary policy decision statement by the Governor of the Reserve Bank of Australia (RBA), Mr. Philip Lowe, issued on April 4th, 2023.

Using the static AD-AS model discussed in the unit, show and explain how the decision to increase interest rates from May 2022 to March 2023 would have achieved the goal for the RBA. What is the goal here? Using the static AD-AS model, illustrate and explain the effect of the RBA’s policy stance on the long-run equilibrium in the economy.

3. Refer to the following budget speech by the Treasurer, Mr. Jim Chalmers.

Based on your understanding of the Aggregate Expenditure model, explain how the policy measures documented in the budget would affect the Australian economy in the short run. Provide adequate illustrations of the Aggregate Expenditure model and show how the budgetary actions would impact the economy.