You are an independent business economist. The Reserve Bank of Australia and the Commonwealth Government of Australia have approached you for your recommendations on whether the various grants from the federal government as economic responses to COVID-19 would help revive the Australian economy.
Assess in detail four federal government grants. Compare these with similar grants offered in another country (which you may choose). You can obtain the information from official or academic sources; a few of them are mentioned below. You should obtain information from other sources in addition to the ones stated below.
(a) Australian Bureau of Statistics
(b) Reserve Bank of Australia
(c) Multinational agencies (e.g. the World Bank, the United Nations, the International Monetary
Fund, or the OECD).
(Note – I strongly recommend to visit Treasury.gov.au to find four federal government grants)
Before you start writing, you should send me the four grants you choose, then I will approve them.
Note- You must draw your own diagrams. Do not copy and paste other’s work from websites
1.0 Explain the current state of the Australian economy. 250 words
(I found following figures and hope these help)
1) Unemployment : 6.9% approx
2) Inflation: 0.7% approx
3) cash rate: 0.1%
4) GDP: -7% approx
Data has been gathered from: www.rba.gov.au and www.abs.gov.au
1.1 Analyse how the growth of the Australian economy has been affected by COVID-19 using macroeconomic concepts with aggregate demand and supply in short and long term. You must draw aggregate demand and supply diagrams. 250 words
2.0 Analyse the impact of the four federal grants (you have chosen) on the performance of the Australian economy. You must use relevant statistical data, graphs and draw diagrams to support your arguments.
Note – you have to analyse each grant’s effect on aggregate income, inflation, employment, investments, GDP, export, import and other macroeconomics concepts which are relevant to that grant. You must find some statistical data and graphs, diagrams for this part. 600 words
2.1 Explain briefly whether your chosen country has similar grants. 100 words
2.2 Compare and contrast whether Australia and your chosen country have benefitted from grants. 250 words
Note – Hint - maybe other county has few or none, if they have, so mention them briefly and compare their grants help them to revive their economy and compare that country’s or Australia’s grant are more effective to revive the economy from covid-19 such as are we doing here is better than other country. etc. you must draw diagrams and show statistics.
2.3 Explain whether or not the grants have affected aggregate demand and aggregate supply in Australia.
You must use relevant statistical data, graphs and you must show all of those Australian grant’s effect on Australia’s aggregate demand and aggregate supply in diagrams for long term and short term. 300 words
3.0 Recommendations (750 words): (10 marks)
What further recommendations would improve Australian economic growth, using the macroeconomic concepts covered in this course? You must discuss key macroeconomics concepts of GDP( which include consumption, investments, government purchases and net exports), inflation, unemployment, income and output using the government’s fiscal policy - (taxes and government expenditure) and monetary policy- (Cash rate and open market operations-(buying and selling government securities)) to improve Australian economics growth. These recommendations should be in addition to What has been discussed and should demonstrate your understanding of macroeconomic concepts.
(my Note - To answer recommendations, use your creative ideas using macroeconomics concepts such as inflation, employment, GDP, investments, etc. using expansionary monitory policy( Cash rate and open market operations-(buying and selling government securities) and expansionary fiscal policy - (taxes and government expenditure) to improve Australian economic growth and you must draw graphs for each recommendations. You should give minimum of five recommendations)
(for example. To revive the current situation, particularly, there is a deflation in Australia (inflation is 0.7),so what expansionary monetary and fiscal policy can do and its impact on aggregate demand and supply or income etc.)
(20 references required)