ECON7001 Foundations in Macroeconomics Assessment - Impact Report
Assessment Task: Impact Report
Group or Individual: Individual
Weighting: 30% (100 marks reweighted to 30%)
Word Limit: 1500 ± 100 words
CONTEXT
The Impact Report follows the Country Report, and you are required to work on the same country that you are assigned for the Country Report. You are required to use economic models and theories covered in this course to explain how the COVID-19 pandemic has impacted the macroeconomy of your assigned country, taking into consideration the key policy responses by the government and central bank to the crisis.
TASK
As an independent economic consultant, you are hired by a consultancy firm to provide an assessment of:
a)the impacts of the COVID-19 pandemic on the country’s economy; and
b)the key policy responses by the government and central bank to the crisis.
In doing so, you will deliver a structured Impact Report, which includes the following illustrative features:
🗹🗹 Up to three (3) figures (diagrams, graphs, or tables) in total. Here, you can use a mixture of diagrams, graphs and tables provided the total number is no more than 3. That is, you can use up to 1 additional figure on top of the 2 AD-AS diagrams required in Section 1(b) & 2(c). 🗹🗹 You can include more than one variable in a graph or table. 🗹🗹 You must produce your own figures, rather than cut and paste from other sources. 🗹🗹 You can use direct quotes provided the total number of quoted words sums to 20 words or less in the whole of the report. This rule is intended to prevent students from over relying on direct quotes without critically analysing the content of the source.
COUNTRY ALLOCATION
The country you must use for this report is based on the last digit of your student number: For example, if your student number is 44194356, then you need to work on country number 6 –Slovakia.
Last digit Country
0 or 1 Estonia
2 or 3 Latvia
4 or 5 Lithuania
6 or 7 Slovakia
8 or 9 Slovenia
1. The Macroeconomic Impacts of the COVID-19 Pandemic (~700 words)
Explain the impact of the COVID-19 pandemic on the economy of your assigned country in
2020. In doing so, you are required to:
a. Drawn an AD-AS diagram that illustrates the impact on your country. On the diagram, label the x-axis as “Real GDP of [country name]” and the y-axis as “Price level of [country name]”.
b. Refer to major economic indicators such as GDP, GDP per capita, inflation rate and unemployment rate.
c. Make use of relevant theory taught in this course in your explanation.
2.Policy Responses (~750 words)
a.Outline the key fiscal policy actions of your country against the COVID-19 shocksduring 2020. Use appropriate macroeconomic theory covered in this course to explainthe expected impacts, and empirical data – if available – to explain any observedimpacts. Discuss what factors may affect the effectiveness of the policy actions.
b.Outline the key monetary policy actions of your country against the COVID-19 shocksduring 2020. Use appropriate macroeconomic theory covered in this course to explainthe expected impacts, and empirical data – if available – to explain any observedimpacts. Discuss what factors may affect the effectiveness of the policy actions.
c.In answering (a) and (b), draw a new AD-AS diagram to illustrate and explain theeffects of the policy responses. On the diagram, label the x-axis as “Real GDP of[country name]” and the y-axis as “Price level of [country name]”.
3.References
References and citations must be in either APA 7th or UQ Harvard style.