INTRODUCTORY MACROECONOMICS Structured Essay Test

 

Question

Use the stimulus material provided to assist you in writing the essay. The essay should have an introduction, a main body, and conclusion. You should use your own drawn graphs (either by hand or using software) to support your arguments.

In writing this essay in your own words and using an economic model discussed in class, answer the following questions.

The stimulus material provides evidence of the IMF forecasts in April and October for the evolution of GDP growth for several countries. Some of the countries have seen an improvement in their forecasts, while for others, their forecasts have deteriorated. The second page of the stimulus package provides a broad picture of different experiences across the globe due to government public health and economic policy decisions.

Stimulus page 1 and page 2

  1. (35 points) Covid-19 has had a direct impact on the economy and an indirect effect via government decisions on lockdowns, social distancing, regulation of services such as restaurants, hotels and transportation. How might Covid-19 affect the economy in both the short-run (including medium-run, i.e. 1 to 3 years) and the long-run? Explain your answer and use a graph from an economic model seen in class to evaluate the impact in the short (1 to 3 years) and long-run.
  2. (20 points) Discuss, providing evidence, the policies being implemented in Australia to overcome the economic costs related to Covid-19 and evaluate their likely impact using an economic model seen in class.
  3. (30 points) As the stimulus package describes, the experience with Covid-19 differs across different countries. Provide evidence on how different economic and public health policies implemented by different countries have impacted their economies differently.

Instructions

  • Essay has to be typed, 1.5 spaced and 12point font
  • Maximum 1000 words (excluding graphs and list of references)
  • Remember to label all your own graphs and insert them in the essay.
  • Turnitin only accepts pdf or doc and docx files
  • The exam will close at 8pm sharpso if you cannot upload as you ran out of time or some other technical difficulty, unfortunately there is nothing that can be done. No tests will be accepted via emails

Marking criteria

  • 15 points for evidence of research and structure of the essay
  • Was your argument logically developed and coherent?
  • Is your argument well grounded in economic theories/models?
  • Have you addressed the question being asked? That is, have you answered it in a direct, succinct way without including unnecessary or irrelevant information?
  • Is your writing readable and persuasive?
  • Has your essay made use, where relevant, of the tools an economist uses to make an argument clearly (e.g. diagrams, equations, references, statistical and other evidence to support statements and conclusions)?
  • Does your essay demonstrate significant research undertaken?