BUS700 Economics - Research Report

Assessment 3

Assessment Type: Research Report: 1500 - 2000 words report — Individual assessment

Purpose: To enable students to research, critically analyse and evaluate the macroeconomic performance of Australia. This assessment contributes to learning outcomes b, c, and d.

Value: 20%                                  Due Date: 11.59 pm, Friday Week 10

Submission: Student will upload only one soft col, to Moodle by the due date to Moodle Turnitin — Word .doc or .docx.

Topic: Evaluation of the effects of macroeconomic variables on the Australian and US economies.

Task details: Obtain data on key macroeconomic indicators of the Australian and the US economies: real GDP, unemployment rate, the budget balance (i.e., deficit/surplus), and inflation rate from 2004 — 2021 and use graphs, tables, and statistical summaries to answer the following questions:

1. Evaluate the movement of real GDP in Australia and the US, from 2004 to 2021. The analysis must include the relative size of the Australian economy relative to the US economy. In addition, identify the country that better withstood the negative impact of the COVID-19 pandemic.
2. Evaluate the movement of the budget balance (i.e., deficit/surplus) in Australia and the US, from 2004 to 2021. The analysis must include the relative size of Australia's budget balance relative to the budget balance in US.
3. Evaluate the relationship between the budget balance and unemployment rate in Australia and the US, from 2004 to 2021. In which country is the relationship between the budget balance and unemployment rate stronger?
4. Evaluate the relationship between the budget balance and inflation rate in Australia and the US. In which country is the relationship between the budget balance and inflation rate stronger and over which period (s)?
5. During the COVID-19 pandemic, both the Australian and US governments pursued expansionary fiscal policies to minimise the negative impact of the pandemic. Given the insights gained from (1) — (4), critically discuss and recommend the type of fiscal policy and monetary policy Australia and US should pursue to keep inflation and unemployment rates low.

Students need to support their analysis with a minimum of 10 academic journal articles plus the text. Students aiming for a Credit or higher grade will need to use more sources. Articles should be relevant and recent. Non-academic journal sources may also be used, but relevance and validity should be clarified with the lecturer/tutor.

Report format: 1500 — 2000 words report in Word.doc or .docx. Title page, executive summary, table of contents, appropriate headings and sub-headings, recommendations/findings/conclusions, in-text referencing and reference list (Harvard —Anglia style), attachments if relevant. Single spaced, font Calibri 11pt.