Bachelor of Applied Management Assignment PDF
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Added on 2021-04-21
Bachelor of Applied Management Assignment PDF
Added on 2021-04-21
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Bachelor of Applied ManagementECONOMICSJanuary 2018 delivery Course assessment- Assessment Three Individual Assignment 40 % LO’s covered Weighting Marks Section A: LO5- Macroeconomic concepts and models(10%)Section B: LO6- Impact of Government on the macroeconomic(15%)Section C: LO7- International trade and global economy(15%)Due date week 8- Sunday 11.59pm (Turnitin)
You are expected to submit professionally presented word-processed assignments. This includes:Official OPAIC cover sheet with all relevant details filled outCorrect spelling and appropriate use of grammar.Pages numbered including a contents page. Questions correctly labelled and numbered with clear and consistent headings Line spacing no less than 1.5 and no greater than double.Main text using 12pt font size. A complete reference list included at the back of the assignment on APA (6th edition format)In text references where appropriateAll assessments must be submitted to turnitin on the due date (Sundayweek 8, 11.59pm)Answer all questions and ensure all graphs are clearly labelled. The preparation of assessments must comply with all OPAIC academic policy and procedures.Learning Outcomes which are assessed in this assignment areLearning outcome five, six and seven
Section A: LO5- Macroeconomic concepts and models (15 marks)Q1) CPIExplain what CPI measures and how it is calculated in NZ. (3 marks)Consumer Price Index (CPI) can be referred to as a dimension that scrutinizes overall weightedaverage of specific prices assigned to the entire basket of consumer goods as well as services. Thisis a measure that replicates overall alteration in the mean accounts of consumers for different goodsalong with services on the earnings. Fundamentally, the alteration in the overall percentage of priceindex can be referred to as the inflation rate (Baumol & Blinder, 2015). In that way, CPI can beconsidered as a macro-economic pointer replicating the alteration in the level of prices of differentconsumer goods bought by households and this CPI can be regarded as the percentage of theincrease in prices of commodity in the entire market. Essentially, the fluctuations in the prices ofvarious goods as well as services, namely gasoline, clothing, food and cars among many others areenumerated. In essence, consumers purchase the prices index for the enumeration of the changes inthe levels of prices (Iossa & Martimort, 2015). Imagine in year 1 the CPI index was 1080 and in year 2 it was 1119, calculate the rate of inflation (1 mark)The consumer price index abbreviated as CPI is enumerated by the central bank of New Zealand using the following way:CPI (at year 2) – CPI (at year 1) / CPI (at year 1)=1199−10801080=3.61%
Q2) GDPa)Use the data to calculate the value of Gross Domestic Product (GDP). Show your working (2 marks)Solution to Question 2 (a):Compensation of employees + Gross Operating Surplus + (Taxes on production and imports– Subsidies) =18900+15700+3900=38500Final Government Consumption Expenditure+ Final Household Consumption Expenditure+Changes on inventories+ Gross Fixed Capital Formation + (Exports – Imports) + Statistical Discrepancy = 6200+23100+1300+9500−1800+200=38500Gross Domestic Product (GDP) is therefore equal to $38500 million. Solution to 2 (b):Specific SituationIncluded or Excluded(in the process of calculationof Gross Domestic Product)( Situation i) This situation is excludedfrom the calculation of GDP( Situation ii) This situation is excludedfrom the calculation of GDP( Situation iii) This situation is includedfrom the calculation of GDP( Situation iv) This situation is includedfrom the calculation of GDP( Situation v) This situation is excludedfrom the calculation of GDP( Situation vi) This situation is includedfrom the calculation of GDP( Situation vii) This situation is excludedfrom the calculation of GDP( Situation viii) This situation is excludedfrom the calculation of GDP
( Situation ix) This situation is includedfrom the calculation of GDP( Situation x) This situation is excludedfrom the calculation of GDP( Situation xi) This situation is includedfrom the calculation of GDP( Situation xii) This situation is includedfrom the calculation of GDPSolution to Question 2 (c):Two specific reasons why recorded official figures for national income (gross domestic product) might possibly understate the overall level of economic action include the following:--Operations under the world (underground economy)
-Operating from home (payment not disbursed) (Nicholson & Snyder, 2014).d) Why is GDP calculated in both real and nominal terms? (1 mark)Solution to Question 2 (d):Nominal GDP is necessarily the real monetary count unit of the gross domestic product in thatspecific year and this is the way the entire calculation is undertaken in that particular year. Again,Real GDP can be considered as the way in which GDP can be adjusted so that it can be comparedbetween different years. In particular, this is the way purchasing power can be compared and not onlythe monetary units. The adjustment for the purpose of inflation is mainly owing to the actual GDP as astandard GDP and that is adjusted by the alteration of the level of price (Rader, 2014). Essentially,this permits in comprehending whether the actual level of quantity of various goods as well asservices manufactured has augmented. e) What does Real GDP per capita show? (1 mark)Solution to Question 2 (e): Real GDP per capita is necessarily a dimension of the overall economic output of a nation that isdivided by the total number of individuals and that is adjusted for inflation (Elsner et al., 2014). Thisis necessarily utilized to compare the overall living standard between nations and over a specific timeperiod (Cowen & Tabarrok, 2015). Therefore, this is a primary yardstick of material living standardof particularly gross national income (per capita). f) Explain two limitations of Real GDP per capita as a measure of a country’s economic well-being. (2 marks)Solution to Question 2 (f):Limitations of Real Gross Domestic Product per capita include the following:-This does not necessarily enumerate standards of living along with quality of life of individuals -This dimension does not help in the process of enumeration of expectancy of life, measurement of environment and measurement of happiness (Varian, 2014).Section B: ADAS model and economic growth (36 marks)1)Use your knowledge of the AD determinants to indicate the direction the aggregate demand curvewill shift for the situations given in the table below. If the aggregate demand curve does not shift place a cross (X) in the space provided (7.5 marks)SituationDirection that ADshifts inward orAD curve does notshift place a cross (X)
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