Macro Assignment 2 Template (2023 S2)

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Macroeconomics 1
ECON1010
Semester 2, 2023
Assignment 2
This is an official
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group’s assignment document is properly submitted through
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Copyright © 2023 RMIT University Page 1

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How to use this document
Carefully read the “Macro Assignment 2 Instructions” document that have been provided along
with this template. Write your responses to the instructions in the relevant part of this document.
The suggested word count or number of sentences has been provided as a guide for each section
of the report. You should not exceed the upper limits. Your word/sentence count does not include
the words in titles and headings, references, tables or graphs, or your groupwork contribution
statements.
Any further instructions in this template that have been written inside square brackets [ ] can be
deleted from your final document when you submit your assignment.
You can delete this page when you submit your final assignment.

Team Charter
As the first step of your assignment, all students are expected to read the Groupwork module in
the RMIT Learning Lab <https://emedia.rmit.edu.au/learninglab/content/group-work>
The module provides practical guidance to equip you to achieve your best as a group. The module
advises that groups begin by designing and collectively agreeing on your team charter. The charter
should outline the values, goals and expectations that all members agree to. The following team
charter is provided as your starting guide. Collectively your group should feel free to edit it to best
match your shared goals, values, circumstances and strategy for completing this task. You should
consult with all members and support all group members to provide their input towards your
team charter.
Our Team Charter

All members of this team agree to:
 respect all group members
 contribute our fair share to the task
 commit fully to the group task and take responsibility for our individual contribution as agreed
to by the group
 communicate regularly with our fellow team members
 participate in all group meetings unless unavoidably unable to do so
 give and receive constructive feedback to support each other’s learning and skill development
 collectively read and edit the final report
 work according to an agreed timeline
 alert our other team members to any delays or limitations on our capacity to fulfil our
individual task as soon as possible
 work collectively to resolve any problems or group conflict
 support each other to fulfil standards of academic integrity
 demonstrate sensitivity and encourage learning among each other
Agreed to by each team member (name and signature)

______________________________________
______________________________________
______________________________________
Date: ___________________
Academic integrity
Academic integrity means that teachers and students are expected to act with "the values of
honesty, trust, fairness, respect and responsibility" in all our learning, teaching and research
activities.
In undertaking and submitting your assignments, it is expected that every student will abide by the
conditions and values that are expected of all students in RMIT’s Assessment Declaration:
 I have not impersonated, or allowed myself to be impersonated by any person, for the
purposes of this assessment.
 This assessment is my/our original work and no part of it has been copied from any other
source except where due acknowledgement is made.
 No part of this assessment has been written for me/us by any other person except where such
collaboration has been authorised by the lecturer/teacher concerned.
 I have correctly acknowledged the re-use of any of my own previously submitted work within
this submission.
 I give permission for my assessment response to be reproduced, communicated compared and
archived for the purposes of detecting plagiarism.
 I give permission for a copy of my assessment to be retained by the university for review and
comparison, including review by external examiners.
I understand that:
 Plagiarism is the presentation of the work, idea or creation of another person as though it is
your own. It is a form of cheating and is a very serious academic offence that may lead to
exclusion from the University. Plagiarised material can be drawn from, and presented in,
written, graphic and visual form, including electronic data and oral presentations. Plagiarism
occurs when the origin of the material used is not appropriately cited.
 Plagiarism includes the act of assisting or allowing another person to plagiarise or to copy my
work.
Each student in this assignment group has declared that they fully understand and fully abide by
these conditions of academic integrity. Agreed to by each team member (name and signature):
______________________________________
______________________________________
______________________________________
Date: __________________

Academic integrity – Declaration of use of AI

In relation to academic integrity, this assessment pieces requires students to acknowledge all
sources of information, data and content that was used. It is anticipated that some students may
choose to make use of AI (artificial intelligence) technology when writing your assignments. The
use of AI is not prohibited or discouraged, but it is essential that any use of AI is declared as a
matter of professional best practice and academic integrity.
Did your team, or any members of your team, use AI (for example, Chat GPT) to generate any
content or ideas for your assignment? If yes, briefly explain the way in which you used AI and
what your reasons for using AI?
Please note that all assessment content that is submitted will be electronically screened for
plagiarism and failure to declare your use of AI may result in academic penalty.

Summary of news articles
News article 1
Title of article:
Name of author/reporter:
Name of website/publication:
Weblink:
Your summary (200-250 words):
News article 2
Title of article:
Weblink:
News article 3
Title of article:
Weblink:

Consultancy Report
Title of your report

Table of Contents
[After you have completed the content of your report, come back to this section and insert a Table
of Contents. A Table of Contents is a standard part of a professional report. It lists all the section
headings and sub-headings contained in your report. This helps the reader to navigate the
document and understand the overall structure of your report.]
Executive Summary
[Summarise the key points of your analysis. Usually we write the Executive Summary after we have
written the content of the report, once we know what the key points are. Further guidance on
how to write an Executive Summary will be provided Tips & FAQs] (3-4 sentences)
Introduction
[Explain the issues that your report will address and the information your report will offer. Clarify
which country does your analysis look at. Point out the ways that your report is useful and
informative for businesses and investors.] (3-4 sentences)
1. What was the state of the economy before the COVID-19 pandemic?
[Provide some brief insights into the overall state of the country’s economy before the COVID-19
pandemic was declared in March 2020. Refer to relevant macroeconomic indicators to support
your observations, including GDP, unemployment and inflation. Clarify the difference between
Nominal and Real GDP, and explain how GDP is connected to unemployment and inflation.
As part of your profile of this economy, identify what are the largest or most important industries
for this country’s economy.]
Be sure to cite all your data sources. Provide the full details of your sources in the References list
at the end of this template document.]
(200-250 words)

2. What has been the impact of the COVID-19 pandemic on the
economy?
[Identify two specific ways that the COVID-19 pandemic shocked the economy at some point
during the COVID-19 pandemic, applying your AD-AS model. The shock could have occurred at any
point of the pandemic.
When you think of your two shocks, you should think in terms of a shock that is related to either
Aggregate Demand (AD) or Short-Run Aggregate Supply (SR-AS). You should identify one shock
that relates to Aggregate Demand (that is, a demand-side shock), and one shock that relates to
Short-Run Aggregate Supply (that is, a supply-side shock). The shock can be either positive or
negative. Each shock be able to be represented by a shift in the AD or SR-AS function on an AD-AS
diagram. If the shock relates to AD, you must identify which component of AD was affected.
For each of the two shocks that you have identified, explain what caused it to occur during the
pandemic. Explain to your client in simple language how each shock caused a shift in AD or SR-AS,
and how this consequently affected economic output (Y) and price level (P) in this country’s
economy. If the shock is affecting the AD function, remember to specifically mention which
component of AD was being affected.
Illustrate each of these two shocks using an AD-AS diagram. You should create two separate
diagrams for each of your two shocks. Include all essential elements of your diagram, including
marking the initial and new macroeconomic equilibrium points, and including arrows to illustrate
what has changed on your diagram. In your discussion of each of these shocks, you should clearly
refer to your diagram when explaining what happened to AD or SR-AS, Output and Price Level.
For the purpose of this analysis, you can assume the economy begins at Potential Output (Y*) and
you only need to focus on short-run effects. Remember that each diagram should illustrate the
effect of one shock only and assume no other changes are occurring (that is, you are “holding
everything else constant”).
Tip: Remember to just focus on the effect of the two specific shocks that you have chosen, rather
than attempt to explain everything that has happened in the economy during the pandemic.]
(5-7 sentences for each of the two shocks in addition to diagrams)
2.1 Example of demand-side shock
[Explanation and diagram]
2.2 Example of supply-side shock
[Explanation and diagram]

3. Economic challenges arising from the pandemic
[Now consider how the COVID-19 pandemic has affected this country’s aggregate economy during
the pandemic with respect to the following broad challenges. For each challenge, write a brief
observation using your economic knowledge, and gather some data to support your observations.]
3.1 Unemployment
[What happened to unemployment and labour force participation rates in this country over the
course of the pandemic? In your explanation, briefly explain to your client why it is important to
monitor both of these labour market indicators.] (150-200 words)
3.2 Costs of living

[What happened to the Consumer Price Index and inflation/deflation? In your explanation, briefly
explain to your client the problems associated with high inflation, and why very low inflation or
deflation should also be considered a problem? Your client has borrowed heavily to invest in many
projects. Explain the problems that can occur when inflation ends up being different from
expectations and how your client might be affected as someone who has many loans.] (150-200
words)
3.3 Economic inequality

[Based on available data on the impacts of the pandemic, provide your assessment of whether
there a risk that economic inequality has worsened, or might worsen in the future, as a result of
the pandemic? Identify which cohorts of the population are most vulnerable to the negative
impacts of the pandemic in terms of economic opportunities, financial security and wellbeing?
Note which economic indicators would you advise using to monitor changes in economic
inequality within a country.] (150-200 words)
3.4 Consumer confidence and mental health

[Explain to your client the role of confidence in the economy. Briefly explain to your client what
happened to consumer confidence and business confidence throughout the pandemic? Looking at
the human side of the pandemic, source a relevant statistic to also explain what has happened to
the mental health of the population and your assessment of the implications for the economy?]
(150-200 words)

4. Longer-term outlook
4.1 Source for long-term economic prosperity

[Your client is seeking to be advised on this country’s economy’s long-term growth prospects for
the future. Using your economic knowledge on long-term growth, provide your brief insights into
the ingredients that an economy needs for achieving ongoing improvements in its productive
capacity and economic prosperity over the long-run. Share you knowledge with your client on
what are the most important ingredients for building a country’s potential output in the long-run.
Present a theoretical diagram to illustrate your explanation of long-term growth. (150-200 words)
4.2 Effects of the pandemic on the economy’s productive capacity

[Drawing on your economic knowledge of the drivers of long-run growth, identify one way that the
pandemic has potentially damaged the economy’s productive capacity and one way that the
pandemic has potentially resulted in changes that could improve a country’s productive capacity.
Describe how these effects would be illustrated with reference to the theoretical diagram that you
have presented in the previous point.] (150-200 words)
4.3 Predicted effects of climate change on economic prosperity

[As part of your consultancy advice to your client, provide some insight on the predicted risks of
climate change and the importance of natural resource sustainability for the economy. Provide
your assessment of the implications of climate change forecasts for the productive capacity of the
economy in the future. (150-200 words)
4.4 Broader measures of economic prosperity and wellbeing

[To end your report, advise your client on some other metrics of wellbeing that we need to pay
attention to when assessing a country’s overall improvement in quality of life over the long-term.
Explain to your client why it is important to consider additional indicators of wellbeing in addition
to the conventional economic indicators. Choose two alternative measures of economic prosperity
and wellbeing that are used internationally, and provide a brief explanation of what they measure.
Source data on these two measures for your country and note how your country compares to
other countries elsewhere in the world according to these measures.] (150-250 words)

References
[List all of the references that you have used in your assignment. If you used AI at any stage of
your assignment, you should include your specific AI as a source of information in your reference
list. Your list of references does not count towards your total word count.]

Contribution to groupwork
[The assignment required you to work collectively as a team. We expect that everyone contributes
their fair share of work to the overall task.
To reflect on your experience working together in a group, each member of the group is asked to
write a short statement (3-4 sentences) explaining your contribution to the group task and how
you were part of this team. If you faced any challenges working as group, this is your opportunity
to describe these challenges and how you overcame them.
To build your groupwork skills, it is expected that all students read the RMIT Learning Lab
Groupwork module. The link to this module is included in the Assignment page on Canvas. In your
statement of your contribution to groupwork, each student should specify what was the most
valuable piece of information that you gained from the RMIT Learning Lab Groupwork module.
Student 1 contribution to groupwork:


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NOT FOR REPRODUCTION OR DISSEMINATION

Copyright © 2023 RMIT University Page 1

Copyright © 2023 RMIT University Page 2

Our Team Charter

Agreed to by each team member (name and signature)

Copyright © 2023 RMIT University Page 4

Academic integrity – Declaration of use of AI

Copyright © 2023 RMIT University Page 5

Summary of news articles

Copyright © 2023 RMIT University Page 6

Title of your report

Copyright © 2023 RMIT University Page 7

Copyright © 2023 RMIT University Page 8

3.2 Costs of living

3.3 Economic inequality

3.4 Consumer confidence and mental health

Copyright © 2023 RMIT University Page 9

4.1 Source for long-term economic prosperity

4.2 Effects of the pandemic on the economy’s productive capacity

4.3 Predicted effects of climate change on economic prosperity

4.4 Broader measures of economic prosperity and wellbeing

Copyright © 2023 RMIT University Page 10

Copyright © 2023 RMIT University Page 11

Student 1 contribution to groupwork:

Student 2 contribution to groupwork:

Student 3 contribution to groupwork:

Copyright © 2023 RMIT University Page 12

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