MAE203 - The Global Economy Interpret Macroeconomic Data

Assignment Task

Purpose

After completing the assignment, you will learn how to interpret macroeconomic data with the concepts covered in this unit which are often used in real world policy making decisions. Also, you will apply the analytical knowledge in answering the questions which will reveal your understanding of the subject materials.

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 Now for each country, calculate the real GDP growth rate. Then plot the real GDP growth rate and the inflation rate series together for all the years in each country separately. Discuss and explain if you find any pattern and relationship between these two data series in each country.

B. Now plot the real GDP growth rate and unemployment series together for all the years in each country separately. Discuss and explain any pattern and relationship between these two data series for all the six countries.

C. Now plot the real GDP series, exports series and imports series together for all the years in each country separately. Then, 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.

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

Using the static AD-AS model discussed in the unit, show and explain how the decision to increase the interest rates from May 2022 till 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 RBA’s policy stance on the long-run equilibrium in the economy.

3. Now 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 illustration of the Aggregate Expenditure model and show how the budgetary actions would impact the economy.

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