Macroeconomics questions
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Macrore-sit.docxCOURSE CODE BCO124 COURSE NAME MACROECONOMICS Resit Task brief & rubrics Resit
Task: Individual final assignment
Each question = 40 %
Last question = 20 &
1. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Year 1 is the base year.
a. What is nominal GDP for each of these three years?
b. What is real GDP for each of these years?
c. What is the GDP deflator for each of these years?
d. What is the percentage growth rate of real GDP from year 2 to year 3?
e. What is the inflation rate as measured by the GDP deflator from year 2 to year 3?
f. In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?
2. Suppose the economy is in a long-run equilibrium.
a. Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run aggregate supply, and long-run
aggregate supply.
b. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram
to show what happens to output and the Price level in the short run. What happens to the
unemployment rate?
c. Use the sticky-wage theory of aggregate supply to explain what will happen to output and the
price level in the long run (assuming no change in policy). What role does the expected price level play in this adjustment? Be sure to illustrate your analysis in a graph.
3a. What is the current account balance of a nation with a government budget deficit of 128 € billion, private saving of 80 € billion, and domestic capital formation of 77 € billion?
3b. “A country is better off running a current account surplus rather than a current account deficit.” Do you agree or disagree? Explain.
Formalities:
· Wordcount: -
· Font: Arial 12 pts.
· Text alignment: Justified.
· The in-text References and the Bibliography have to be in Harvard’s citation style.
· Final timed-assignment – 100% of the total weighting
Submission: before 30/03/2023 at 23:59
Weight: This task is a 100% of your total grade for this subject. Resits are capped at 70%
It assesses the following learning outcomes:
· Outcome 1: Introduce the students to the basic principles of Macroeconomics
· Outcome 2: Improve students analytical abilities, discussion skills and presentation techniques
· Outcome 3: Solve macroeconomic exercises supported by theoretical inputs.
Rubrics
|
Presentation |
Exceptional 90-100 |
Good 80-89 |
Fair 70-79 |
Marginal Fail 60-69 |
Fail <60 |
|
Knowledge & understanding (30%) |
Student demonstrates superior understanding of the main concepts and principles pertaining to the theory delivered in class and awareness of current areas of debate |
Student demonstrates good understanding of the theory delivered in class, applying some relevant knowledge to the question (some minor details might be missing) |
Student demonstrates some understanding of the theory delivered in class, applying some knowledge to the question (key details might be missing and there may be some irrelevance) |
Student demonstrates little understanding of the theory delivered in class, applying very little key knowledge to the question. Key details are missing and irrelevance is present. |
Student demonstrates an insufficient understanding of the theory delivered in class. Key knowledge is not applied to the in question and information is of little or no relevance. |
|
Application (25%) |
Student selects appropriate support from data, real life case studies or literature to support their argument. |
Student selects mostly appropriate support from data, real life case studies or literature to support their argument. |
Student makes acceptable effort to select appropriate support from data, real life case studies, or literature to support their argument. |
Student makes little effort to select appropriate support from data, real life case studies, or literature to support their argument. |
Appropriate support from data, real life case studies, or literature to support arguments is insufficient or absent. |
|
Critical evaluation (25%) |
Student relates concepts and principles to underlying theoretical frameworks and approaches well. Some attempt may be made to engage critically with these frameworks. |
Student sufficiently relates concepts and principles to underlying theoretical frameworks and approaches. |
Student makes some effort to relate concepts and principles to underlying theoretical frameworks and approaches. Some connections and relationships may be weak. |
Student makes little effort to relate concepts and principles to underlying theoretical frameworks and approaches. Some connections may be weak or inappropriate. |
Student does not relate concepts and principles to underlying theoretical frameworks and approaches. |
|
Communication (20%) |
Student communicates their ideas very clearly and concisely, making excellent use of visuals to support their message. |
Student communicates their ideas clearly and concisely, making good use of visuals to support their message. |
Student communicates their ideas with some clarity and concision. Visuals are used to support their message successfully at times. |
Student communicates their ideas with limited clarity and concision. Visuals support their message with limited success. |
Student fails to communicate their ideas clearly and concisely. Visuals are poor and do not support the message. |
