BUS700 Economics Term 1 2025 – Individual Assessment 3 Brief

Task details of BUS700: 

Obtain the following macroeconomic data for Australia for the period 2002-2024: real GDP and real GDP growth rates, unemployment rates, inflation rates, interest rates (cash rates), exchange rates (US$ per A$), exports and imports.

(1) Using the graphs and statistical summaries of the data collected,

1. Discuss how the growth rates of real GDP are related to inflation and unemployment rates, and
   
2. Discuss how the movements of Australia’s exports and imports are related to interest rates and exchange rates.

(2) Conduct a simple regression analysis to investigate how these macroeconomic variables (unemployment rates, inflation rates, interest rates (cash rates), exchange rates (US$ per A$), exports and imports) are likely to influence the growth rates of real GDP in Australia. Discuss the estimated effects.

(3) Given the insights gained from (1)-(2) above, discuss how monetary policies would contribute to the growth of real GDP in Australia? Support your discussion with plausible economic reasons.

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: 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.

Recommended sources of data are:

• www.abs.gov.au
• www.rba.gov.au
• www.federalreserve.gov
• www.imf.org
• www.worldbank.org.

World Development Indicators (WDI)

However, data may also be obtained from other credible sources. Also, recommended readings for government policies include:

• Statement on Monetary Policy of the Reserve Bank of Australia for insights of monetary policies in Australia.
  RESERVE BANK OF AUSTRALIA
• Budget documents for insights of fiscal policies in Australia.
  Budget 2025-26

1. This assignment is individual assessment.
   
2. Name and ID number of student must be clearly printed on the Assignment Cover Sheet.
3. Students 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.

4. Plagiarism (copying the paper from other person) is a serious violation of copy right. It will be penalised and attract a very
heavy loss of marks – “Fail”. Make sure you do not show your work to other person(s). Both who show the work and who
copy the work will lose their marks heavily and fail in the assessment.

5. Make sure that you read and check everything in the research paper before submission, once completed.

• Knowledge and understanding of topic 20%
• Critical thinking, analysis and evaluation 20%
• Reading and Research 20%
• Written presentation 20%
• Identifying examples, both historical and current, and make policy recommendations improvement 20%

Total mark will be scaled to a mark out of 20. A full Marking Rubric is provided below and also available in Moodle.