BUS700: Kangaroo Republic- Macroeconomic Data- Economics Report Writing Assignment Help

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Economics Report Writing Assignment Help:
Task:
Question 1
(a) The table lists some macroeconomic data for Kangaroo Republic. Calculate the country’s GDP, using expenditure side approach. Explain and show your calculation.
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(b) Citrus Republic produces only three commodities – apple, orange and bread. The base year is 2015, and the table gives the quantities produced and the prices. Calculate Citrus Republic’s real GDP in 2016 in terms of the base-year prices and the real GDP growth rate between 2015 and 2016. Explain what it means.
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(c) The table provides information about the economy of a country.
(i) Calculate the marginal propensity to consume (MPC). Show your calculation and interpret what the MPC you calculated mean.
(ii) Assuming there is no change in net taxes and imports, calculate the expenditure multiplier using the information you obtained in (i). Interpret what the multiplier you calculated mean.
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Question 2
Australian Bureau of Statistics reported the following data for 2015: Labour force participation rate: 65.6 per cent
Working-age population (in thousand people): 18,429,726
(a) Calculate the labour force.
In New South Wales in October 2015, the labour force was 3,803,200 and 200,500 people were unemployed. In November 2015, the labour force decreased by 300 and the number employed increased by 2,900.
(b) Calculate the unemployment rate of NSW in November 2015.
The data given below is expenditure date for a typical family on a Pacific Island.meco4
Question 3
Aggregate Expenditure and Fiscal Policy
Suppose that the Australian economy is at its equilibrium, and the Australian government has decided to reduce its spending on welfare supports.
(a) Discuss the short-run effects of the spending cuts on macroeconomic variables – particularly on equilibrium output, inflation and unemployment rates. In your discussion, draw and use aggregate expenditure (AE) and AD-AS model together to explain the process that moves the economy to its new equilibrium output.
The Australian economy is at full employment long-run equilibrium and the inflation is consistent with RBA’s target rate. Suppose that the Australian government increases spending on social infrastructure and education. Assume that the RBA maintains a stable monetary policy and everything else remains unchanged.
(b) Draw and use AD-AS model to analyse and explain how the increase in government spending would affect real GDP, inflation rate and unemployment rate in the short-run and in the long-run (the long-run adjustment process).
Assume that an economy is at full employment long-run equilibrium.
(c) Using the AD-AS graph, discuss how a sudden supply side shock would affect the equilibrium output, price level and the unemployment rate in the short-run first. Then discuss what type of fiscal policy would you advise the government to implement to return the economy to its long-run equilibrium.
Explain the long-run adjustment process.
(d) Briefly explain the key role of Automatic stabilisers operating in fiscal policy. Then explain how the two automatic stabilisers would work in an economic expansion.
Question 4
Monetary Policy and Exchange Rates
In December 2012, Japan commenced quantity expansion of money, Yen, as one of the key monetary policies. The Bank of Japan (BOJ) increased the quantity of money by 80 trillion Japanese Yen every year through open market operation in an attempt to support the troubled Japanese economy. The large increase in the quantity of money was expected to have significant impacts on a range of economic sectors in Japan and global financial markets.
(a) Analyse and discuss how the quantity expansion of Japanese Yen would have affected interest rate, investment and consumption, aggregate demand, real GDP and price level in Japan. Draw AD-AS model to explain your analysis.
(b) Explain, in the short run, how and why the expansionary monetary policy in Japan would likely to change the flow of funds between Japan and Australia, if Australian interest rates were on hold.
(c) Given such an expansionary monetary policy in Japan, answer the following three questions.
(i) Draw the exchange rate graph showing the movement of Japanese Yen against Australian dollar (hint: use demand for and supply of Japanese Yen, with A$/Yen).
(ii) Discuss how such an expansionary monetary policy would likely to affect the value of Japanese Yen and the exchange rate (depreciation or appreciation) against Australian dollar.
(iii) Discuss how the change in exchange rate would likely to influence Japanese exports and imports, the current account balance (improve or worsen) and the competitiveness of the Japanese economy in the global market.

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