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Economics - Assignment Sample

   

Added on  2021-06-14

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Running head: ECONOMICS ASSIGNMENT Economics AssignmentName of the StudentName of the UniversityAuthor Note

ECONOMICS ASSIGNMENT 1Table of ContentsAnswer 1....................................................................................................................................2Answer 2....................................................................................................................................4a. Tariff of 30% on Australian chickpeas in India.................................................................5b. Increase in demand for Australian wine in China..............................................................6c. Increase in government expenditure...................................................................................6d. Fall in price of imported oil...............................................................................................7e. Increase in immigration......................................................................................................9References................................................................................................................................11

ECONOMICS ASSIGNMENT 2Answer 1 In the theoretical and conceptual framework of economics, there are severalmacroeconomic indicators like that of growth of the Gross Domestic Product, rate ofinflation, unemployment rate and others, the performance and dynamics in which haveconsiderable impacts on the economic performance of the concerned countries (Mankiw,2014). The rate of inflation in a country at a particular point of time shows the average levelof prices of the commodities and services in the country at that point of time. A very highinflation, thus, implies that the goods and services are quite costly in the country, which inturn indicates towards higher sufferings for the population of the country. On the other hand,a very low inflation rate indicates towards low prices of commodities which in turn indicateslack of encouragement for productivity and may lead to economic stagnation in the country(Goodwin et al., 2015). Thus, maintaining a moderate and balanced level of inflation is animportant task of the monetary authority of the countries. On the other hand, high rate ofunemployment is heavily detrimental for the economies as it signifies lack of economicwelfare among the population in the country, which in turn indicates towards lack ofproductivity and sluggish economic growth of the country. Keeping the significance of these two macroeconomic indicators into account, thedynamics of the same and the relationship between the dynamics of the two indicators, for theglobally dominant, highly developed and one of the most stable economies of Australia canbe seen from the following figure:

ECONOMICS ASSIGNMENT 344.555.566.5700.511.522.533.544.55Rate of Unemployment and Inflation (2001-2016) Unemployment Rate InflationrateFigure 1: Rate of Unemployment and Rate of Inflation in Australia (2001-2016)(Source: Abs.gov.au, 2018)As is evident from the above figure, there has been considerable fluctuations in theinflation and unemployment rates of the country in the period of 2001 and 2016. But whenthe trend of the relationship between these two variables is observed over the same period, itcan be seen that there exists a visibly negative relation between the rate of inflation andunemployment rate of the country as can be seen from the negatively sloped trend line(Corden, 2012). This can be theoretically augmented with the concept of Phillip’s curve ineconomics. Phillip’s Curve The Phillip’s Curve shows the relationship between the inflation and unemploymentrate of a country and is generally negatively slopes as can be seen from the following figure:

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