ECO511 Assignment 3 Scaffold – economics assignment writings

Task

Answer the following question ensuring that you apply economic principles or theory related to understanding the health of the economy and the need for government intervention to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling, and writing style and support your answer with diagrams and examples as necessary.

Question 1 (10 marks)

Using data from the Australian Bureau of Statistics (ABS) http://www.abs.gov.au/ collect information on the four expenditure components of Gross Domestic Product:  consumption, investment, government, and net exports.  Develop measures for these four components using annual data for the period 1987/8 to 2017/18 inclusive, in real per capita terms. Plot these values over time. Be explicit and define the data employed and provide sources for the data obtained, cite the ABS catalog and table numbers.   Provide economic explanations of any observed time patterns in these series.

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Question 2 (10 marks)

Using appropriate diagrams, explain the likely impact of a period of low real wage growth on macroeconomic equilibrium in Australia. Use evidence drawn from media and other reports to illustrate your answer. How might government policy responses to mitigate any undesirable consequences of prolonged periods of low real wage growth?

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