Assessment Overview

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ECON11026 Assessment 3 Take Home Essay
Term 1, 2020

Due date: Friday of Week 12 (5 June 2020) ASSESSMENT
Weighting: 40% 3
Length: Approximately 2500 -3000 words
The essay is based on topics covering week’s 7-11

Objectives
This assessment item relates to Unit Learning Outcomes 6 to 7 as listed in the unit profile.
Assessment Overview
This assessment task requires you to write an essay that demonstrates your theoretical and applied knowledge relating
to the macro economy and stabilisation policy. It focuses on the macroeconomic section of the unit and builds on the
economic fundamentals that you learnt in the first half of the term. You will need a sound understanding of GDP,
economic growth, unemployment, inflation, macroeconomic stabilisation polices, particularly, fiscal policy. In this
essay, you will refer to the chapters outlined in the prescribed text book, relevant journal articles, various reports of the
Australian government websites including the Treasury. The purpose of this assessment is to develop skills in
interpreting current macroeconomic indicators, analysing macroeconomic policies and their implications for the wider
economy.
Assessment Topic
Coronavirus (COVID-19) has taken the world like a storm.
“This is an economic tsunami,” Mark Zandi, chief economist at Moody’s Analytics, told me. Social
distancing is economic distancing. We are telling people to cease going to stores, to restaurants, to
workplaces. We are insisting they stop supplying their labour, making their goods. To slow a pandemic, we
are forcing a
recession, perhaps a depression. [Source: Ezra Klein, Vox, 23 Mar 2020]
Discuss the likely economic impact of COVID-19 pandemic on the Australian economy by using
recent macroeconomic indicators whilst critically evaluating the role of fiscal policy as a stabilisation
tool in a crisis like this.
Background Information
Australia has experienced an unprecedented economic growth, achieving the longest economic expansion on
record (28 years) without a recession. It also escaped the Global Financial Crisis at the end of the mining
boom relatively unscathed. This unprecedented economic story is about to topple by an unprecedented health
crisis that could drag the Australian economy into a recession for the first time in 28 years. Or will it extend
to a depression, as the economist, Mark Zandi is alerting? Australian economy has been facing several
structural issues such as the stagnant wage growth rate, a sluggish economy, housing affordability, rising
household debt, a rapidly declining manufacturing sector, and concerns of job security caused by mass
automation. How does a pandemic impact the households, businesses, government spending and foreign
trade? What does this impact mean for GDP, unemployment rate, and the budget balance? In this economic
environment, the role of macroeconomic policy cannot be ignored. Particularly, the role of recent stimulus
packages to combat the effects of Coronavirus pandemic. In this essay, you will discuss the impact of the
pandemic on the economy by assessing macroeconomic indicators and critically evaluating the role of fiscal
policy as a stabilisation tool of a modern economy.

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Detailed Instructions on the Structure of the Essay
1. Introduction
The introductory paragraph(s) should broadly outline the topic that will be discussed, explain why it is
important and a brief outline of the main sections that you will discuss in the remainder of the essay.
2. Body
The body of the essay contains the main sections. Please do not include the title ‘Body’ in your essay. You
may divide the body section into sub-sections by including sub-headings. As a minimum, you should:
Provide an overview of the current macroeconomic environment in Australia by using a range of
macroeconomic indicators such as GDP growth, unemployment rate, inflation rate, lending indicators,
building approvals, etc. and how these indicators have been affected by the COVID-19 emergency;
Assess the economic performance of the last four quarters and identify the stage of business cycle
based on the latest data available. Please note that 2020 March quarter GDP figures may not be
available till 3 June;
Define fiscal policy and its objectives. Identify various types of fiscal policy and with appropriate
diagrams, explain how they influence aggregate demand;
Explain how the multiplier process works with respect to the proposed COVID-19 stimulus spending
in Australia;
Evaluate the impact of the fiscal stimulus initiatives taken by the government on the previously
forecasted budget balance of the Federal Government and its influence on the macroeconomy; and
Discuss the limitations of using fiscal policy to stabilise the economy.
You must define key terms before analysing them. In any economic analysis, it is good practice to follow the
DADA principle – Definitions, Assumptions, Diagrams and Analysis (Please do not include these as subheadings).
All diagrams must be labelled and discussed in the text. Embedded JPEG files of hand-drawn diagrams are
acceptable and you must cite them as “Source: Adapted from Author, date, p. number”. All definitions and
ideas obtained from published material must be appropriately referenced.
3. Conclusion
Conclusion should be an integrated summary of your main points. It should include a final statement that
reflects the research you conducted and your overall understanding of the topic. New material should not be
introduced into the concluding section.
4. References
All references should follow the APA style and reference list should include all the references that you have
cited in an alphabetical order.
Submission Details
All submissions must be via the Turnitin plagiarism detection system. Please tick the terms and conditions
box in order to submit your work properly. If your similarity index is too high, please make changes with
appropriate references and paraphrasing and resubmit. However, subsequent submissions take longer time to
display the similarity index, therefore submit your work early.

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Assessment Criteria
ECON11026 – ASSIGNMENT 3
ASSESSMENT CRITERIA AND MARKING RUBRIC
Enter student’s name

Criteria Max Mark % Fail
(0-49%)
Pass
(50-65%)
Credit
(65-74%)
Distinction
(75-84%)
High Distinction
(85-100%)
1. Overview of the
current economic
environment with
reference to
COVID-19 and the
state of economy
with regard to the
business cycle
10.0 25 0 12.5 16.25 18.75 21.25 25
The response is
poor or irrelevant
and there are
major
omissions/errors.
The response is
sufficient but
incomplete. Some
parts of the question
are unanswered and/or
have errors.
The response is good
and the description of
current economic
environment is clear
and complete.
The response is
excellent and paints a
clear and concise
picture of the current
economic
environment.
The response is
outstanding and it
provides an excellent
and comprehensive
overview of the current
economic environment.
2. Fiscal policy, its
intended
objectives, the
types of fiscal
policy; and the
impact on AD
6.0 15 0 7.5 9.75 11.25 12.75 15
The response
reflects a poor
and/or inadequate
understanding of
the economic
concepts involved.
Demonstrates a basic
understanding of the
economic concepts
involved.
Demonstrates good
understanding of the
economic concepts
involved.
Demonstrates an
excellent
understanding and
purpose of the
economic concepts
involved.
Demonstrates
exceptional
understanding and
purpose of the economic
concepts involved.
3. Multiplier process
with respect to
stimulus spending
6.0 15 0 7.5 9.75 11.25 12.75 15
The response
reflects a poor
and/or inadequate
understanding of
the economic
concepts involved.
Demonstrates a basic
understanding of the
economic concepts
involved.
Demonstrates good
understanding of the
economic concepts
involved.
Demonstrates an
excellent
understanding and
purpose of the
economic concepts
involved.
Demonstrates
exceptional
understanding and
purpose of the economic
concepts involved.
4. The impact of
COVID-19 and
economic stimulus
on the budget
balance and the
macroeconomy
10.0 25 0 12.5 16.25 18.75 21.25 25
Evaluates issues
and related policy
inadequately.
Evaluates issues and
related policy
sufficiently.
A good critical
evaluation of issues
and related policy.
An excellent critical
evaluation of issues
and related policy.
An exceptional critical
evaluation of issues and
related policy.
5. Limitations of
fiscal policy as a
stabilisation tool
4.0 10 0 5.0 6.5 7.5 8.5 10
Evaluates the
limitations of FP
inadequately.
Evaluates the
limitations of FP
sufficiently.
A good critical
evaluation of the
limitations of FP.
An excellent critical
evaluation of the
limitations of FP.
An exceptional critical
evaluation of the
limitations of FP.
6. Standard of
writing,
explanations,
referencing,
diagrams and the
use of DADA
framework
4.0 10 0 5.0 6.5 7.5 8.5 10
Standard of
writing,
explanations, the
use of DADA and
referencing are
poor.
Standard of writing,
explanations, the use
of DADA and
referencing are of
satisfactory quality.
Effectively
communicates ideas.
Standard of writing,
explanations, the use
of DADA and
referencing are of
good quality.
Convincingly
communicates ideas.
Standard of writing,
explanations, the use
of DADA and
referencing are of
excellent quality. Very
convincingly
communicates ideas.
Standard of writing,
explanations, the use of
DADA and referencing
are of outstanding
quality. A superior
communication of ideas.
Total Mark 40 100 Additional comments:
Grade

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Useful tips:
Get a good understanding of macroeconomic objectives, unemployment, inflation, the role of fiscal policy
on the economy and economic growth. Refer to learning material and relevant chapters from the set
textbook or any other economics textbook.
Conduct research relevant to the Australian economy. For example, the Australian Bureau of Statistics
(ABS), the Treasury website. You will come across additional information related to the essay topic. Pick
and choose what and how you present this information (citation, tables, graphs etc.) as you must adhere to
the word limit.
The focus of your task for this assignment is to apply macroeconomic concepts and theory to the role of
fiscal policy, the multiplier effect, fiscal stimuluses and the budget balance in particular.
Apply the DADA framework (Definitions, Assumption, Diagram and Analysis) when answering the
questions. Both On-campus and Distance students attempt weekly activities using DADA framework.
These exercises will help and guide you how to analyse an economic problem.
Read the ‘Assessment Criteria and Marking Rubric’ provided on p.3 of this document.
Browse the assessment resources including the ‘Assessment Guidance and Sample Responses’ folder in
the ‘Useful Resources’ block of the Moodle.
Read the ‘How to write essays in economics’ guide available on the unit Moodle page.
Read the ‘Assignment Submission Tips’ document provided on Moodle.
Plagiarism and contract cheating are punishable offences. Make sure you include in-text references and
provide a reference list. Seek help from the Academic Learning Centre on how to paraphrase and reference
material.