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This assignment covers the following topics:
·         Unemployment (Chapter 28)
·         Productivity and Growth (Chapter 26)
·         Saving, Investment and Financial System (Chapter 27)
READ THE FOLLOWING FIRST (Very Important)
·         This assignment contributes to 20% of the overall marks for the course.
·         Only a single attempt of submission is permitted (please ensure to attach the file version of the assignment)
 
·         Use this Word template only for your submission (i.e., write down your answers in the space provided in each question) – any other form of the file is NOT accepted for online submission (Failing to do so will automatically mean zero mark for this task).
·         If you do not have a word processor installed in your home computer, follow this link and in “APPS” you can use a Microsoft word processor;  http://www1.rmit.edu.au/students/mydesktop
 
·         The recommended browsers for submission are Chrome, Firefox or Explorer (some have suggested that Safari might not work well).
·         The font size has to be at least 12.
·         Explain your answers, but be succinct.
·         Label each axis and explain the diagram that you use carefully.
·         Show all of your working in order to get partial credits.
·         Please ensure to attach the final version of the assignment.
·         After the due date any late submission will be marked as ‘late’. A penalty of 10% of the allocated marks (i.e., 2 marks) per day will apply for late submissions.
·         A failure of your home computer (or any kind of the IT problem) cannot be a reason for the late submission (all requests for an extension of this nature will be rejected immediately).
·         Make sure you have included your student ID and name in the front page of the assignment
·         Working with other fellow students is strongly encouraged. However, you cannot just copy your friend’s answers. If we find out this, you will be harshly punished for the academic plagiarism. See　‘students responsibilities’ at RMIT’s policy on this:
·         http://www1.rmit.edu.au/browse;ID=sg4yfqzod48g1
 

 
 
Short Answer Questions:
 
1.      Go to;
http://www.nationmaster.com/country-info/stats/Economy/GDP-per-capita/PPP/Constant-2000-international-%24
a.       This displays real (constant 2000 international) GDP per capita for 2005. Go through the country rankings report anything that YOU personally find interesting or surprising. (1 mark)
 
 
 
 
 
 
b.      Write down the top three countries and their GDP per capita values in 2005, and the three countries with the lowest GDP per capita values. (1 mark)
 
 
 
 
 
 
c.       Now in the ‘Select year’ box choose year 1975 and write down the GDP per capita values for the same six countries. (1 mark)
 
 
 
 
 
 
 
d.      For each of these six countries compare the figures for 1975 and 2005. In which of the countries did GDP per capita grow the most and in which the least? Put forward reasons for the differences in the growth experiences between the two countries. (2 marks)
 
 
 代写 MACRO1 (ECON1010) assignment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
2.      Analyse the effects of the following events in the loanable fund market diagram where we have (real) interest rate (r) on the vertical axis and the quantity of loanable fund (Q) on the horizontal axis. Please ensure to explain what happens to private saving, private investment spending, and (real) interest rate, and demonstrate it changing a figure below.
 
a)      An increase in government purchases (2 marks).
 
Answer here (Tips: to create new lines, simply copy the existing curves and move to the new location)
 

Real Interest Rate (r)

E1

Quantity of Loanable Funds (Q)

Q1

Supply1

Demand1

r1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 

b)      Australian business becomes very optimistic about the future course of the economy and this increases the prospect of their profitability at any given (real) interest rate. Assume the government budget balance is zero. (2 marks)
 
 
Answer here (Tips: to create new lines, simply copy the existing curves and move to the new location)
 

Real Interest Rate (r)

E1

Quantity of Loanable Funds (Q)

Q1

Supply1

Demand1

r1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

c)      A decrease in the income tax rate (2 marks)
 
Answer here (Tips: to create new lines, simply copy the existing curves and move to the new location)
 

Real Interest Rate (r)

E1

Quantity of Loanable Funds (Q)

Q1

Supply1

Demand1

r1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

3.      Answer the following questions:
 
a)      Write down the national account identify for a closed economy. Then, show the identity between national savings (i.e. the sum of private savings and government savings) and investment. You must show all of the steps. (2 marks)
 
 
 
 
 
 
 
b)      Write down the national account identity for an open economy. Again, show the identity between national savings (i.e. the sum of private savings and government savings) and investment. Show all of your steps. (2 marks)
 
 
 
 
 
 
 
 
c)      Based on the saving and investment relationship in the closed economy in Part a), explain how an increase in government purchases (G) can affect growth in output per worker. We assume that the taxes that the government collects remain unchanged. (2 marks)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
4.      The level of government debt is a growing concern for the current Australian Treasurer who has the responsibility of managing the government budget. Summarise the key arguments on the debate around Australian government deficit. Your summary must address the following;
 
·  What is the major concern of running government deficits?
·  What is the economic reasoning to have a balanced budget? and
·  When might a budget deficit/surplus be OK?
 
Conclude by briefly discussing what policies you would suggest to the Treasurer in order to balance the budget and why. The summary should be at least half a page in length (3 marks).
 
(Answer here)
 
 代写 MACRO1 (ECON1010) assignment