ECO10004: Economic Principles - Unemployment & Inflation - Economic Principles Assignment Help

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Economic Principles Assignment Help

TASK1 Calculate the year-end (or annual) inflation rate for the March 2018 quarter. Show all workings including the formula used. Using excel calculate the year-end inflation rate for each quarter for the period March 2010 to March 2018. Paste your spreadsheet with the answers into the assignment. Using Excel, prepare a graph of the year-end inflation rate for each quarter for the period March 2010 to March 2018. Paste your graph into the assignment. Make sure you carefully label your graph including an appropriate title, axis labels and legend. Explain, using economic concepts, how the impact of Cyclone Larry would cause an increase in CPI. Would you expect that impact would lead to an overestimation or underestimation of CPI and inflation TASK2 Starting from long-run equilibrium, use the basic (static) aggregate demand and aggregate supply diagram to show what happens in both the short run and the long run when there is a reduction in consumer confidence. Explain your diagram. Explain how each of the following events in questions 2 and 3 would affect the aggregate demand curve. No graph required Domestic prices increase, which raises interest rates. Slower income growth in other countries. Suppose you are an advisor to the federal government. You are asked to look at macroeconomic data to evaluate whether the economy has entered an economic contraction this year. Which data do you look at? How does the economy behave at the onset of an economic contraction? Explain your answer.