ECON802 Macroeconomics: Theory, Data and Policy Assignment 1 | AUT

ECON802 Assignment 1

POINTS to NOTE:

1. There are 100 marks for this assignment which is 40% of the final course grade.
2. The word limit for this assignment is 4,000 words (+/-10%), including references, figures, tables, and appendixes.
3. Use Arial or Times New Roman font size 12 and 1.5 line spacing.
4. Ensure you follow academic citation and referencing requirements, as failure to do so may invoke penalties. Use APA (7th). A reference list is required.
5. You are also required to reference the use of any tools / software / application used. This includes the use of artificial intelligence (AI) to paraphrase or proofread, which requires a statement where applicable.
6. Upon submission your assignment will be checked for copied materials as well as the use of AI (artificial intelligence), with penalties to be applied where appropriate and if not appropriately referenced.
7. You may submit your assignment as a draft submission (Moodle/Turnitin) to check similarity prior to making your final submission.
8. Late submissions incur a 5% penalty (5 marks) for each 24-hour period up to 96 hours (after that time, your mark will be recorded as zero).
9. An extension may be granted if, within the prescribed timeframe, you submit an ‘Assignment Extension Application’ form with supporting documentation (e.g., a medical certificate) to the Programme Administration Unit.

As set out in your Course Outline, this assignment requires you to:

• Analyse market structures and determine appropriate strategies for different market situations; and
• Apply key economic principles to appraise the impacts of economic policies and analyse the relationship between varying economic conditions and corporate performance.

Section A

Analyse the following three situations, considering the relevant economic concepts and appropriate demand-supply diagrams to graphically illustrate the impacts of each of the following events and determine appropriate strategies. The diagrams should be neatly drawn and correctly labelled and contain illustrations of the initial situation, changes that occurred as a result of each scenario below, and the final situation. You need to support your arguments with appropriate research.

1. The impact of the Russia-Ukraine war on global wheat prices.
2. One recent topic in New Zealand was the cost-of-living crisis. What might be the impact of setting a maximum price on the price of petrol and diesel? What could be a better solution to control prices in the fuel market?
3. The Swiftie Economy: the impact of Taylor Swift’s concerts on the concert ticket and the economy in Australia.
   20 marks for each of the three market situations;
   60 marks in total for Section A.

Section B

The annual inflation rate in New Zealand was at a high of 7.2 percent in September 2022 but has since decreased to 2.2 percent as of September 2024 (Consumers Price Index: September 2024 Quarter | Stats NZ, n.d.). With the benefit of using key macroeconomic principles covered in class and research done in this area, critically evaluate how the impact of monetary and fiscal policy measures implemented in the years up to 2022 contributed to the high rate of inflation. Then discuss how the subsequent monetary and/or fiscal policy adjustments have contributed to the significant reduction in inflation by 2024.

As part of your response, include an appraisal of the current impact and likely long-term impact on the economic and corporate performance of potential economic policies. Ensure that you also refer to the current policies that are being implemented and discuss the potential future impacts of such policies.

You need to support your arguments with research and appropriate AD-AS diagrams. They should be neatly drawn and correctly labelled and contain illustrations of the initial situation, changes that occurred as a result of the macroeconomic policies, and final situation. You may draw one single diagram or multiple diagrams to illustrate the situations.

40 marks

Consumers price index: September 2024 quarter | Stats NZ. (n.d.).

Consumers price index (CPI)