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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)
1.       This assignment contributes to 20% of the overall marks for the course.
2.       Only a single submissionpermitted (hence, please ensure to attach the file version of the assignment)
3.       Use and Submit this template onlyfor your submission (i.e., write down your answers in the space provided in each question and submit) – any other form of the file is NOT accepted (Failing to do so will automatically mean zero mark for this task).
4.       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
5.       The recommended browsers when uploading the file areChrome, Firefox or Explorer (some have suggested that Safari might not work well).
6.       The font size has to be at least 12.
7.       Explain your answers, but be succinct.
8.       Label each axis and explain thediagram that you use carefully (if any).
9.       Show all of your working in order to get partial credits.
10.    After the due dateany 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.
11.   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).
12.    Make sure you have included your student ID and name in the front page of the assignment
13.    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:
14.    http://www1.rmit.edu.au/browse;ID=sg4yfqzod48g1
 
 
 

 
 
Short Answer Questions:
 
 
1.      Compute various indicators of the state of the labour market using the following information. Please show all of your working. If you do not, you will receive zero marks for the question(s).
 

Demographic Group	Number of Residents
Full-time workers	7,000
Part-time workers	2,000
Unemployed and looking for work	600
Unemployed and not looking for work due to     discouragement over job prospects	500
Not working due to disability	300
Not working due to retirement	900
Under the age of 15	3,000
Total Population	14,300

 
a)      (1 mark) What is the size of the labour force in this economy?
 
 
b)      (1 mark) Calculate the Labour Force Participation Rate for this economy. Report as a percentage to two decimal places.
 
c)      (1 mark) Calculate the Unemployment Rate for this economy. Report as a percentage to two decimal places.
 
d)      (1 mark) Suppose that the natural rate of unemployment is considered to be 5%. What is the rate of cyclical unemployment? Report as a percentage to two decimal places.
 
 
 

 
 
2.      Analyse the effects of the following events using the loanable fund market diagram where we have (real) interest rate on the vertical axis and the quantity of loanable fund on the horizontal axis. Please ensure to explain what happens to saving, investment and (real) interest rate.
 
a)      Consumers decide to save more to prepare themselves for the future (at any given interest rate).Assume the government budget balance is zero.(3 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)      A reduction of income tax rate by noting that the source of the supply of loanable funds coming from both private as well as public saving (3 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. Watch the 10 minute video at www.gapminder.org/videos/what-stops-population-growth

Summarize the video in minimum of 5 sentences (Not in the bullet points, please!). What were the most interesting or surprising facts you learned?(3 marks)
 
 
(Answer)
 
 

 
 
 
 
4.      Over the next 100 years real GDP per capita in Neverland is expected to grow at an average annual rate of 2.0%. Gotham (yes, where Batman lives!) is expected to growth at an average annual rate of 1.5%. If both have a real GDP per capita today of $20,000, compare their real GDP per-capita in 100 years. Please show all of your working. If you do not, you will receive zero marks for the question(s).(2 marks)
 
(Answer)
 
 
 
MACRO1(ECON1010) Assignment 1 宏观经济学 代写
 
 

5. 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 debt and deficit for the Turnbull government.

 
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 Scott Morrison implementsin order to balance the budget and why. The summary should be at least half a page in length(again,please do not write in the form of the bullet points).No need to list the reference, but please do not copy and paste from whatever you found on the web. We can easily detect this in our system!(5 marks)
 

• MACRO1(ECON1010) Assignment 1 宏观经济学 代写