BU1003 Principles of Economics Assignment Answers

  • Identify and apply the characteristics of economic thought and theory
  • Examine the practical relevance of economics and apply to current microeconomic and macroeconomic contexts

The aim of this assessment is for you to apply foundational macroeconomic concepts and theory learned in weeks 6-10 and analyse macroeconomic data to make an informed judgement on the future actions of the Reserve Bank of Australia’s (RBA) Monetary Policy.
You have been invited as an guest expert to write a commentary column for The Weekend Australian – Business Review (https://www.theaustralian.com.au/commentary). As the author of this media article, you are to write from the point of view of an economist, communicating the contents included within the article to the general Australian public. This will include households and businesses.
Step 1: Explore readings related to macroeconomic concepts covered within weeks 6 to 10 of our subject.

Step 2: Research real data on economic indicators such as those identified below. Display these indicators within a summary table. The word content within this table will not be included. A good starting resource to locate such data is the Australian Bureau of Statistics (ABS). For further ABS information see https://www.abs.gov.au/statistics/economy/key-indicators.
Gross Domestic Product growth rate
Consumer/business confidence measures (e.g. Lending indicators, retail activity)
Unemployment Rate
Inflation Rate
Currency Exchange rate

Step 3: There is speculation that the RBA will be increasing the Cash Rate due to increased economic activity within Australia. Analyse the transmission effects from this monetary policy action on the cash rate. Analytical frameworks which examine these effects are desirable and are to be included within an appendix. Please ensure these are clearly labelled with headings and referred to within the body of the Media Article.

Step 4:
Based on your analysis from step 3 and the current economic climate revealed within step 2 , evaluate whether the RBA should increase, decrease or leave the same Cash Rate, given its mandate of 1) low and stable inflation; (2) Full Employment and (3) Welfare of Australians. Please explain why for your opinion based on your evaluatations.
Step 5: Present your findings from steps 2, 3 and 4 into a Media Article of 1000 words maximum including intext citations (see Tips for writing a press release for some guidance). Include a reference list and an appendix which presents your analytical frameworks (word count excluded).

Provide a title of the Media Article in Bold which captures the essence of the article along with a date.
Write a concise summary paragraph. This should be no more than four sentences (approximately 100 words) to give the audience an overview of what is included within the press release.
Introduction to hook in the reader (approx. 50 words)
Develop the body of the article (approx. 600 words). There should be three main sections which include:
Anticipated effects of an increase of the Cash Rate based on the economic indicators observed within step 2.
A statement based on your evaluation whether the RBA should increase, decrease or leave the same Cash Rate. Clearly justify why, drawing connections from your summary table of economic indicators. Further, link your commentary to RBA’s mandate of (1) low and stable inflation; (2) Full Employment and (3) Welfare of Australians.
Write a succinct closing paragraph. This should be no more than four sentences (approximately 50 words).
Provide a reference list in APA format. These will not contribute towards word count. For help on how to reference go to https://libguides.jcu.edu.au/apa

Step 6: You are to submit a single file which includes: (1) A Media Article with a reference list and (2) An appendix which presents any graphs and analytical demand and supply frameworks. Please ensure these are labelled and referred to where relevant within the body of the Media Article.