Assignment: The Global Economy
The assignment has three parts. In Part A, the questions are related to data collection, preliminary analysis and presentation with narratives. Part B questions are short answer type questions which are going to test your analytical and explanatory skills. In Part C, the purpose of the career education aspect of this assignment is to help you understand employer expectations for economics graduates, track your development and understand the opportunities for economics graduates. Keep in mind that the graduate job application ‘season' opens February each year, and that the graduate job application process will occur throughout your final year. This assignment is designed as a continuation of the journey you started in MWL101.
Part A: Data collection, presentation and analysis.
Q1. Browse the Australian Bureau of Statistics webpage. Download and plot the seasonally adjusted nominal GDP (in levels) and real GDP (in levels) for the period 1990-2016 (in quarterly frequency) from ‘Table 1. Key National Account Aggregates'. Now using the same Table 1, download and plot the percentage changes of these two GDP series (use trends) for the same time period. From the plots, could you find any relationship between nominal and real GDP in levels and growth rates? Explain your answer. (Word limit: 200 words)
Q2. Go to the World Bank website and collect and present annual data for the following variables for Australia, China, South Korea, Japan and UK for the period 1991-2016. The variables are: (i) Inflation, consumer prices (annual %) (ii) Unemployment, total (% of total labor force) (iii) Gross capital formation (% of GDP) [Note: this is Investment as a % of GDP] and (iv) Expense (% of GDP) [Note: this is Government expenditure as a % of GDP]
Present the data in tables. You are free to decide how many tables to use, and which variables/countries to include in each table. Each table must be numbered and have a clear heading/title indicating its contents, and a reference for the source of the data under the table.
Use the data to construct the following graphs. Indicate under each graph which table(s) the data came from. Give your graph a title, and make sure to label each of the axis and the variable.
Figure 1. Inflation rate for all five countries.
Figures 2, 3, 4, 5 and 6: One figure for each country, with the Unemployment rate, Gross capital formation and Expense for that country.
Using Figures 2 - 6, analyse and explain any general relationship you see between the three variables in each of the countries. On the basis of the data collected, analyse any similarities and differences in the performance of economies. (Word limit: 300 words)
Q3. Now visit the Reserve Bank of Australia website and download the monthly exchange rates for China, Japan and UK from the webpage for the years 1991 to 2016.
Then, browse the Australian Bureau of Statistics data and download the monthly seasonally adjusted ‘Balance on Trade in Goods and Services' data from Table 1 for the period 1991 to 2016.
Use three different diagrams to plot the exchange rate and trade balance series together for the above three countries. Based on these diagrams, discuss the relationship between exchange rates fluctuations and trade balance in Australia.
Part B: Short Answer Questions
Q4. The Government is contemplating a tax cut of $20 billion to boost the economy which is experiencing some recessionary pressure. Use the aggregate expenditure model to analyse what will happen to the equilibrium GDP. If the marginal propensity to save is 0.2, how much would it influence the equilibrium GDP? Explain your answer. (Word limit: 300 words)
Q5. Starting from an initial long-run equilibrium, use the dynamic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is a decline in investment expenditure. What policy action would the central bank take in such circumstance? (Word limit: 300 words)
Part C
Before you start this section, it is recommended that you familiarise yourself with the Economics Learning Standards for Australian Higher Education (ELS). Understanding these will help you understand the expectations of an economics graduate and articulate the skill set gained in your economics studies. The ELS have been jointly created by academics and industry, with the aim of matching employer and educator expectations.
For this part of the assignment, you are required to research the role of a macroeconomist (or economist) in an institution, business or sector of your choosing. You can think of this as a potential position which would be linked to your role when you apply for jobs after finishing your degree. Write a report of no more than 700 words that includes:
1. A brief introduction on the organisation you have chosen, and the industry or sector they operate in (recommend 100 words).
2. A summary of the role you have chosen, including the skills required for the role. Use the Economics Learning Standards for Australian Higher Education to aid your reflection. Break down where you meet these expectations, and your areas for improvement. How would you show a recruiter that you have the required skills and experiences for your chosen economics position? (recommend 200 words)
3. Describe what drew you to your selected position. Link the chosen position to your VIPS (values, interests, personality and skills) and how the chosen position is relevant to your long-term career plan (recommend 100 words):
o If you have completed MWL101 - refer to your self-awareness test results. You may also want to consider re-taking the tests to track any changes since you took MWL101
o Other students - you can take self-awareness tests in DeakinTALENT's Career Decisions module
o Include your test results as appendix items in your report
4. Reflect on the economist informational interview video. This video will be posted in the assessment resources folder. Reflect on (recommend 200 words):
o What were some of the most interesting aspects of the interview, and how may this be relevant to your own future career?
o Did the interview raise any areas of concern for you? (e.g. skill or experience gaps, job/industry suitability)
o Has the interview left you with any unanswered questions? Who could you discuss these questions with?
5. Review the action plan you developed in MWL101. Based on your learning with unpacking a graduate job position, and watching the interview; list the actions you've completed or are working on, and what you still have to do. Did you learn anything that influences your career decision-making? (recommend: 100 words)
o Students who haven't completed MWL101, the Career Decisions module linked above will help you develop a career action plan. Your discussion here instead should focus on what you can do to address the gaps you have identified in this assignment.
NOTES:
Presentation and Referencing:
Assignments must be typed. Answers should be in full sentences, which have been checked for grammar and spelling. Marks will be deducted if your ideas are expressed poorly or are confused, and cannot be awarded if your expression is ambiguous. Data should be neatly presented in table and graph format where requested, with sources correctly documented. The tables and graphs should have a relevant title and each axis on the graphs should be correctly labelled. Sources of data should be acknowledged under each table and chart and fully documented using a reference list presented at the end of the assignment.
Word limit:
You are limited to no more than 2,000 words in total. The words in any graphs/diagrams, tables, equations, and the references do not count toward the word limit.
Extensions:
Extensions can only be approved by the Unit Chair. They are rarely granted and rarely for more than a few days, so do not depend on an extension. Extensions can be granted for documented serious illness (not just on the day the assignment is due!) or for compassionate reasons. Work or holiday reasons are NOT grounds for an extension - you are expected to manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of any length.
Note that CloudDeakin may not accept some file formats. You should try to upload one file only in either Word or (preferably) PDF format. If this is too big, then upload multiple files as attachments with the assignment word document or pdf document file.
Other Information:
Read carefully the University policy on ‘ACADEMIC HONESTY AND MISCONDUCT' before you start working on your assignment.
Individual work is required!
You may study with other students, however you must write this assignment on your own. On occasions students submit assignments that are very similar and clearly close copies of each other, using identical or very close diagrams and examples. This is called collusion. Plagiarism is if you use ideas that are not your own without appropriate reference. Software will check each assignment for plagiarism and collusion, which are explained further in our Unit Guide and the reference above. We do catch students, and they then have to appear before the Academic Misconduct Committee and receive a penalty - penalties can be severe and even include exclusion from the university. The whole process is traumatic for everyone.
Most students do the work in good faith and submit their own words and diagrams. They understand the importance of this for learning, maintaining the quality and integrity of the degree they will ultimately get, and preparing for the exam.
To avoid any suspicion of collusion if you do work together, go away to write up your own version separately. If you use ideas from other sources (for example the text or articles) then reference them. All directly or indirectly sourced material must be referenced and an alphabetical list of references should be included at the end of your assignment. If you quote directly from the textbook you must reference your quotation (including a page number), however you are strongly encouraged to express your ideas in your own words. Economic concepts from the textbook do not need to be referenced if stated in your own words. Economic (or other) ideas or concepts from any other sources, including on-line sources, must be referenced. Figures in tables must be referenced. Use the Harvard (Author, date) style of referencing.