Using this exemplar Assignment-3 Case Study This example of previous student work is designed to help you understand assessment expectations and be able to visualise what work at different achievement levels might look like. It is important to: Remember that while these examples are in response to a similar topic related to monetary policy, the assignment was different! Read the assignment sheet carefully so you know what the student was attempting to do in these examples and think about how your assignment is similar and different when modelling work off these tasks. Look carefully at the result the student achieved along with the feedback. This will help you understand what was strong and weak about the assignment. Comments have been placed in the margins to help you understand the task and identify particular strengths and weaknesses in the work. Use this as a guide only. Do not copy from an exemplar; your work must be your own. Marking Criteria Weight Mark Overall presentation Structure and organisation of the paper 1 1 Clarity of expression 1 1 Evidence of wide reading and research (in-text and end-text referencing) 1 1 Application of theory to practice 7 x5 Q 1 Q 2 Q 3 Q 4 Q 5 Define key terms, explain key issue and problem in the case 2 9.5 2 2 2 1.5 2 Identify and explain assumptions 1 5 1 1 1 1 1 Provide appropriately adapted graphical illustration/s, tables with explanation 1.5 6 1.5 1.5 1 1 1 Provide critical analysis of the question drawing theory from relevant chapter topics 2.5 8 2 1.5 1.5 1.5 1.5 Provide conclusions of the case, highlighting overarching economic issues 2 1.5 Late penalty (less 2 marks per day) Final mark for Assessment 3 40 33/40 Feedback This was a well-structured assignment which achieved a strong HD overall. It had particular strengths and weaknesses which are worth acknowledging: Strengths: The student consistently used the DADA model, providing clear definitions, identifying assumptions, sharing data (via graphs, charts, and tables), then analysing these. The students academic writing is clear and almost always grammatically accurate There is evidence of a wide range of research, almost all of which comes from appropriate academic sources (e.g., other text books, the ABS and RBA websites). Student has demonstrated the understanding of the functions of monetary policy, and its role in stabilising Aggregate demand and keeping inflation in check. Student has used some relevant graphs (current and over the period of time) from RBA/ABS data base, and demonstrated its application in context of the case. Weaknesses: The students introduction and conclusion could have been more developed; these are at a Credit rather than D standard. Few of the graphs needs application and explanation. More analysis, applying current data to the theory, would have strengthened each section of the case. Some referencing errors exist, particularly in relation to how websites are cited INTRODUCTION Monetary policy is when a central bank influences the monetary base by setting the interest rate on overnight loans in the money market. A case study on the background of the RBA and a monetary policy decision to lower the cash rate by 25 basis point in May 2016 will be discussed. This discussion will involve answering five questions to build the case study and a statement by Governor of RBA, MR Glenn Stevens, to explore the topic. To justify the answer for each question, the key objectives will be defined, assumptions outlined, diagrams illustrated and an indepth analysis conducted. Key Macroeconomic objectives Macroeconomics is the study of the inter relationship between economic aggregates, especially the total consumption, national income, money supply and investments (McTaggart, Findlay & Parkin, 2010). There are four main macroeconomic objectives which are: price stability, full employment, economic growth and balance of payments stability (Sloman, Norris & Garrett, 2014). Economists like to plan for future generations and create sustainable economic growth, which occurs if the growth rate can be managed without creating other compelling economic problems (Layton, Robinson & Tucker, 2016). The economy dictates prices for goods and services and the RBA attempts to control inflation (i.e., rise in prices alongside a decrease in the purchasing power of money, Sloman et al., 2014). Key considerations may include the exchange rate (how much one unit of a countrys currency is worth if traded for units from anothers) and unemployment rate (the number of people actively looking for work, but without current jobs) (McTaggart, Findlay & Parkin, 2013). The research shows that there is a high correlation between all macro variables; unemployment, economic growth, inflation and exchange rate. Is it assumed that unemployment is affected by economic growth and vice versa. This assumption means many consider the unemployment level of an economy as a good indicator of the state of economic growth. This is based on the assumption that high unemployment results in low economic growth because consumers, without income, are not able to consume and the economy cannot sustain itself without this input. Therefore, employment must not fall under a set level or it will negatively impact economic growth. This relationship is seen most strongly during periods of economic downturn as unemployment rates follow suit (Sloman, Norris and Garrett, 2014). Another key assumption is that changes in inflation strongly influence exchange rates. For example, a decrease in exchange rates often causes an increase in inflation rates, as exporting becomes cheaper and importing more expensive. With more exports, the balance of payments (i.e., a financial record of all of the countrys transactions compared to the rest of the world) is affected and national income increases. Consequently, economic growth is thought to be positively affected which causes unemployment rates to drop. High and sustainable economic growth Commented [A1]: This is just a part of its role.not just overnight loan. Commented [A2]: This introduction is at a Credit, not at a HD standard. Instead of describing the task, the student should have elaborated more, explained the background of the case (e.g., what is the RBA and why are its decisions important). Commented [A3]: In this section, the student is responding to the assignment prompt: What are the key macroeconomic objectives? What is the effect of change in money supply on interest rate? Commented [A4]: This paragraph provides clear definitions of key terms used in the discussion of macroeconomic objectives, the first step of the DADA model Commented [A5]: The student should have elaborated on each one- as to why they are important Commented [A6]: The next two paragraphs effectively identify key assumptions, the second step of the DADA model Commented [A7]: Provide the reference to research/ articles. Commented [A8]: As this has been cited before, it can now be shortened to Sloman et al. Commented [A9]: The student should have defined economic growth and explained its causes. Commented [A10]: The student now shares a range of useful charts, graphs, and figures to help provide data about key macroeconomic objectives. This is the third step of the DADA model. Figure 1.1 Three spheres of sustainability (MIRA,2016) Three spheres of sustainability show how everything is connected and how these relations affect each other. The relationship between supply of money and rate of interest is endogenous. Sloman states (page 267 to 268) using Figure 11.2(a) that the supply of money is exogenous and assumed to be determined by the central bank (RBA, 2016). Low unemployment Figure 1.2 Australian Unemployment Rate (Trading Economics, 2016) As reported by the Australian Bureau of Statistics, the unemployment rate in Australia averaged 6.93 percent from 1978 until 2016, reaching an all-time high of 11.10 percent in October of 1992 and a record low of 4 percent in February of 2008 (RBA,2016). Low inflation Commented [A11]: Each chart, figure, or graph is briefly explained in context. Figure 1.3 Components of Retail Inflation (ABS, 2016) According to RBA this graph shows that consumers are spending money in the retail industry, mainly on food and alcohol, generating jobs in this industry (RBA,2016). Exchange rate stability Commented [A12]: Explanation of the graphs has been effectively incorporated and well supported by appropriate data Figure 1.4 Australian Interest Rate & Exchange Rate Volatility (RBA, 2016) For Australia, prior to floating there was significant volatility in domestic monetary conditions. Floating the exchange rate addressed this problem. It meant that one of the final prerequisites for effective domestic monetary policy had been achieved (RBA,2016). Satisfactory balance of payments AUGUST KEY FIGURES Jul 2016 Aug 2016 Jul 16 to Aug 16 Aug 15 to Aug 16 Trend Employed persons (000) 11 955.3 11 965.1 9.9 1.6 % Unemployed persons (000) 721.4 721.0 -0.4 -5.6 % Unemployment rate (%) 5.7 5.7 0.0 pts -0.4 pts Participation rate (%) 64.8 64.8 0.0 pts -0.2 pts Seasonally Adjusted Employed persons (000) 11 967.6 11 963.7 -3.9 1.5 % Unemployed persons (000) 723.8 713.3 -10.5 -6.8 % Unemployment rate (%) 5.7 5.6 -0.1 pts -0.5 pts Participation rate (%) 64.9 64.7 -0.2 pts -0.3 pts Employed Persons Unemployment Rate Commented [A13]: In this paragraph, the argument is well supported by data and appropriate analysis Commented [A14]: The student has effectively incorporated the latest data. Figure 1.5 Comparison of trend and seasonally adjusted numbers for employed and unemployed persons (ABS, 2016). The table and graph above compare the trend and seasonally adjusted numbers for both employed and unemployed persons to illustrate the balance of payments. Money supply can have an effect on the interest rates. All money presently in the market is set at price that is changed according to supply and demand. Large introductions of money into the market lower the interest rates, whilst small supplies tend to raise the rate. The above figures demonstrate that when GDP is low, unemployment increases, inflation decreases, and so interest rates decrease. For example, when people or investors decide to buy a house they must usually borrow money or get a loan. When deciding if they can borrow, they examine the interest rates, which are controlled by RBA and the commercial banks. When the interest rates are low, consumers are incentivised to borrow money, increasing the money supply which then impacts the interest rate in the future (RBA,2016: Sloman, Norris & Garrett, 2014). [Student work which responds to Topics/questions 2-5 and the conclusion have been removed from this example as there is some overlap between these and the current assignment. This is NOT a complete assignment] Commented [A15]: In this paragraph, the student now analyses the data shared in the tables, graphs, and chart, allowing the reader to understand their significance in relation to macroeconomic monetary policy. This is the final step of the DADA model. Student provides some critique and justification supported by current data. The student could have improved this part of the response by discussing the reasons why the RBA has to look at all the macro economic data before making any decision regarding interest rate rise or cuts. Also the student should have explained, in context, the importance of the macroeconomic indicators illustrated within the graphs for making any monetary policy decisions. Commented [A16]: This student has been able to secure a high distinction because of the excellent range of vocabulary, structures, and expressions within the assignment. The assignment has used convincing arguments along with accurate and appropriate data and analysis to engage the audience. References Australian Bureau of Statistics. (2016). Statistics. Retrieved September 20, 2016, from http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0?opendocument&ref=HPKI Layton, A., Robinson, T., & Tucker, I. (2016). Economics for today. Melbourne, Victoria Cengage Learning Australia. McTaggart, D, Findlay, C, & Parkin, M 2010, Economics, Frenchs Forest, N.S.W.: Pearson Australia, 2010. MIRA (2016). Landscape, Ecology & Sustainability. Retrieved September 20, 2016, from http://www.miratechnologypark.com/ Reserve Bank of Australia, viewed 20 September, 2016, http://www.rba.gov.au/statistics/cash-rate/ Sloman, J, Norris, K, & Garrett, D 2014, Principles of economics, Frenchs Forest, New South Wales Pearson Education, c2014. Trading Economics, viewed 20 September, 2016 http://www.tradingeconomics.com/ Commented [A17]: This assignment would benefit from reference to additional journal articles, textbooks, and scholarly websites. Commented [A18]: Referencing needs improvement. APA style needs to be followed. Commented [A19]: Please make sure citations are formatted in APA style. Commented [A20]: Make sure you write out the full name, not just the acronym Commented [A21]: Please check carefully to make sure they are in APA style. Commented [A22]: This website needs to be cited in APA style.
This example of previous student work
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