1. General information
Assessment Type: Critical Review – 1500 words report
To enable students to research, critically analyse and evaluate the macroeconomic performance of Australia. This assessment contributes to Learning Outcomes (a) and (c).
Evaluation of Macroeconomic performance of Australia and USA.
Students will complete a research-based analysis and evaluation of the macroeconomic performance of Australia and USA from 1985 to 2015/16.
Students will answer two questions by the following procedures:
Question Word Limit: 1500 words
Some financial market commentators often assert that changes in USA’s real GDP have the tendency of causing recessions and expansions in Australia, because Australia trades with the USA and its economy is small relative to the economy of USA. Do you agree or disagree with this assertion? Critically discuss.
2.1 To answer the question, obtain Australian and USA data from 1985 – 2015/16 on real GDP growth rates, yearly exchange rate movement, net exports (NX) growth rates, interest rates (i.e. Australia’s Cash rate and US’ Fed funds rate).
2.2 Produce appropriate statistical tables and pair-wise graphs of each series (e.g. cash rate vs Fed funds rate) and critically analyse and discuss their relationships to reach your conclusion.
2.3 In your discussion, provide plausible economic explanations, including the impact of fiscal and monetary policy in both countries, for the relationships among the series.
Research requirements, presentation and source of data
3.1 Research requirements: student need to support their analysis with a minimum of 10 academic journal articles plus the text. Articles should be relevant and recent. Non-academic journal
sources may also be used, but relevant and validity should be clarified with the lecturer/tutor.
3.2 Presentation: Report format – 1500 words report – in Word.doc or .docx format
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 Times New Roman 12pt, Calibri 11pt or Arial 10pt.
3.3 Source of Data: Data may be obtained many credible sources, including: (1) abs.gov.au; (2) rba.gov.au; (3) imf.org; (4) http://databank.worldbank.org/data/reports.aspx?source=world- development-indicators
4.3 You must follow an appropriate format explained below. Not following appropriate format will cause a loss of some marks.
All analytical contents must be clearly typed and printed. Hand-written report will NOT be accepted.
Appropriate heading or sub-title of each section must be typed and used.
You must analyse, explain and show how and why you draw your conclusion.
You must also draw and include appropriate and relevant graphs and tables together in your explanation. Draw them using Microsoft Power Point/Word/Excel, NOT hand- drawn.