University : Others UniLearnO is not sponsored or endorsed by this college or university.
Country : Australia

Economics Assessment Task

Question 1 

A successful government campaign aimed at advertising South Africa as an excellent holiday destination for American travellers leads to an influx of tourists from America. Graphically illustrate and explain the impact of this increase in tourists on the rand/dollar exchange rate.

Question 2 

2.1 The economy of Country A is in a boom and the inflationary gap is large.

2.1.1 Explain the fiscal policy actions that might be taken by the government to correct this.

2.1.2 Use the AD-AS model to indicate the impact of these policy actions.

2.2 There is a decrease in the oil price and you are asked to report on the supply side effects.

2.21 Use the AD-AS model for your report.

(5) 2.2.2 Graphically illustrate the analysis.

Use the information provided to answer the following questions:

3.1 Clearly explain the difference between comparative advantage and absolute advantage.

3.2 Which country has absolute advantage? Explain your answer.

3.3 Which country has comparative advantage in car production and which country has comparative advantage in cotton production?

CASE Study:

Global economy: why central bankers blinked Central banks worldwide have often been criticised for reacting too slowly to a change in interest rates in the wake of changing economic conditions. The reason for their slow reaction is uncertainty about the future state of inflation, economic growth and asset prices. An update from the IMF last month bemoaned the “backdrop of weakening financial market sentiment, trade policy uncertainty, and concerns about China’s outlook”.

Growth in advanced economies will slow from an estimated 2.3% in 2018 to 2% in 2019 and 1.7% in 2020, it said. Global manufacturing activity is at a two-and-a-half-year low. “You are getting a much more sober assessment of global growth,” says Mohamed El-Erian, chief economic adviser at Allianz. What has gone wrong?

The sea change reflects, in part, a realisation that policymakers became overly bullish last year, says Mr El-Erian. The Fed, in particular, over-reached by signalling four increases in interest rates for 2018 when the global economy was still fragile, he says. Its new-found caution is providing ‘air cover’ for other central banks to mark down their own rate expectations. This in part explains why central banks have been slow to react in recent times.

Question 1 

1.1 If the unemployment rate rises, what effect will the Reserve Bank’s decision not to change the repo rate have on the South African economy? (5) 1.2 If the inflation rate rises, what effect will the Reserve Bank’s decision not to change the repo rate have on the South African economy?

1.3 If the inflation rate falls, what effect will the Reserve Bank’s decision not to change the repo rate have on the South African economy?

This Economics Assessment has been solved by our Economics experts at UniLearnO. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Keith
  • Posted on : November 18th, 2018

Whatsapp Tap to ChatGet instant assistance