Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: THEend8_
ECON7021
Policy Response
Assessment Task Policy Response
Assessment Type Research Report
Group or Individual Individual
Weighting 30% of course (100 marks reweighted to 30%)
Word Limit 1,200 words1
Due Date 6 June, 4 pm
Marking Rubric Blackboard > Assessment > Policy Response > Marking Rubric
Submission Submit your assessment as a Word document on Turnitin via the course
Blackboard site. (See submission details on page 6 of this document.)
Academic Integrity UQ has strict rules against academic misconduct, including cheating,
plagiarism, colluding and solicitation. You are responsible for preserving
the highest standards of academic integrity in your work. Note that you
are not permitted to use generative Artificial Intelligence (AI) tools for
this assessment task. Please read and familiarise yourself with these rules:
PPL 3.60.01 Student Code of Conduct and PPL 3.60.04 Student Integrity
and Misconduct.
Context
We can use both the IS-LM (or IS*-LM* in the case of small open economies) and AD-AS models to
illustrate short-run economic fluctuations and the movement to long-run equilibrium.
This assessment task, consisting of Part 1 and Part 2, is detailed on the following pages. For Part
1, the relevant topics are Topics 9 and 10. For Part 2, the relevant topics are Topics 10 and 11.
1 The word count excludes the cover sheet, title, section headings, short tables, figures, table and figure
headings, figure notes, and the reference list.
The word count includes your writing and in-text citations.
2
Part 1: Mundell-Fleming and AD-AS Models (Around 400 words)
You must complete this part of the assessment task for your allocated country, with the country
allocation indicated in Table 1 below.
Table 1
Country Allocation
Last digit of your eight-digit student ID Country
0 or 1 Sweden
2 or 3 Norway
4 or 5 Netherlands
6 or 7 Finland
8 or 9 Belgium
PLEASE NOTE:
• The countries you must use for Part 1 of the research report are based on the last digit of
your complete student ID. So, for example, if your student ID is 44194358, then your
allocated country for Part 1 is Belgium.
• The number in your student email address (e.g., S4419435) is not your student ID; it
misses the last digit (i.e. 8 in this example). A 10-mark penalty (out of 100 marks) will
be applied if you fail to follow the country allocation rules.
In the Impact Comparison research report, you already identified your allocated country’s overall
fiscal and monetary policy mix2 in 2022. List that policy mix in Part 1 of this Policy Response
research report, and then illustrate and fully explain the short-run and long-run effects of the fiscal
and monetary policy mix, ceteris paribus (holding other things equal), using the Mundell-Fleming
(IS*-LM*) and AD-AS modelling frameworks. Assume the economy was initially in long-run
equilibrium.
On the next page are a few tips to consider when writing Part 1.
2 What is a fiscal and monetary policy mix? It is the fiscal and monetary policy stance in a specific period.
For example, the country could have implemented expansionary fiscal policy and tighter (contractionary)
monetary policy.
3
TIPS:
• Part 1 does not require collecting data for economic indicators.
• Revise Topics 9 and 10 before completing this assessment task.
• Do not provide details of the implemented policies. Instead, you only need to state
whether the overall fiscal policy of your allocated country was expansionary or
contractionary in 2022 and whether the overall monetary policy of your allocated
country was looser (expansionary) or tighter (contractionary) in 2022.
• To illustrate the short-run and long-run economic impacts, you must include the
Mundell-Fleming (IS*-LM*) and AD-AS model graphs. The graphs should clearly
show the relevant movements of the curves and equilibrium variables. Ensure your
graphs align with the appropriate IS*-LM* and AD-AS modelling frameworks of
Topics 9 and 10. All allocated countries have floating exchange rates, so use the
relevant IS*-LM* model.
• To explain the economic effects, you must refer to your IS*-LM* and AD-AS graphs.
Part 2: AD-AS Model (Around 800 words)
Suppose a small open economy with floating exchange rates faces an exogenous shock in the form
of a financial crisis. The country’s government aims to stabilise output, while its central bank
strives to stabilise prices. Assume the country is initially in long-run equilibrium at its full-
employment output level.
• First, illustrate and explain the short-run and long-run effects of the financial crisis without
policy intervention, ceteris paribus, using the AD-AS model framework of Topics 10 and 11.
• Second, consult peer-review journal articles to suggest an appropriate fiscal and monetary
policy mix that the government and the central bank should implement in response to the
financial crisis, ceteris paribus.
• Finally, illustrate and explain the short-run and long-run effects of your suggested fiscal and
monetary policy mix using the AD-AS model framework of Topics 10 and 11. Your analysis
should demonstrate how the policies will alleviate the adverse effects of the financial crisis.
On the next page are a few tips to consider when writing Part 2.
4
TIPS:
• Part 2 does not require collecting data for economic indicators.
• Revise Topics 10 and 11 before completing this assessment task.
• The scenario relates to a hypothetical small open economy with a floating exchange
rate; thus, you are not required to consult country-specific sources.
• You need to recommend one fiscal policy and one monetary policy. The fiscal
policy could be expansionary, contractionary or unchanged (that is, no policy action).
And the monetary policy could be looser (expansionary), tighter (contractionary) or
unchanged (no policy action).
• To motivate your recommended policies, you should cite peer-reviewed journal
articles and include the full reference details of those sources in the reference list at
the end of your document.
• To illustrate the short-run and long-run economic impacts, you must use the AD-AS
modelling framework of Topics 10 and 11. Your graphs should clearly show the
relevant movements of the curves and equilibrium variables.
• To explain the economic effects, you must refer to your AD-AS graphs.
References
References and citations must be in APA 7th referencing style.
TIPS:
• Consult the APA 7th referencing style guide.
• If you directly quote the original content word for word, it must be in quotation marks.
• Only use sources written in English.
• You must cite and reference sources even when paraphrasing the original content.
• Having more in-text citations and references will reduce the number of words for the
main body. But having too few in-text citations and references will lessen the report’s
credibility. Therefore, you need to balance the two.
• Accessing peer-reviewed journal articles: You can access peer-reviewed journal
articles through the UQ Library. Refer to the following guides to help you search for and
identify relevant resources.
o Subject guide for Economics: https://guides.library.uq.edu.au/economics
5
o Library search: https://web.library.uq.edu.au/research-tools-techniques/library-
search
o Search techniques: https://web.library.uq.edu.au/research-tools-
techniques/search-techniques
Additional Requirements
Please adhere to the following requirements when compiling your Policy Response research report.
Penalties will apply, in line with the marking rubric, if you fail to follow these instructions.
PLEASE NOTE: You must use the research report template on Blackboard > Assessment >
Policy Response > Template. The template includes a cover sheet. Complete and include this
cover sheet with your submission. Do not start your research report on the cover page. Instead,
the first page of your research report should be the page after the coversheet (as it is in the
template).
• Formatting requirements:
o Word document
o Font type and size: Arial 11
o Line space: 1.5
o Word limit: Maximum of 1,200 words
• Referencing style: APA 7th
o You can use direct quotes, provided the total number of quoted words is 20 or less
in the research report.
• Word count:
o The word count excludes the cover sheet, title, section headings, short tables,
figures, table and figure headings, figure notes, and the reference list.
o The word count includes your writing and in-text citations.
• Tables and graphs:
o Your research report (Part 1 and 2 combined) may include a maximum of four (4)
figures (graphs). No tables are required.
o Figures may contain more than one graph as long as the included graphs are
interconnected, e.g. adding the IS*-LM* and AD-AS models in a figure’s top and
bottom panels, with the interconnected variable being output (Y) on the horizontal
axes of both graphs.
6
o You must produce your own graphs rather than cut and paste them from other
sources.
• General:
o Do not use footnotes or endnotes.
o Use the marking rubric to guide your assessment planning and writing.
• Turnitin:
o The Turnitin similarity percentage of your report must be below 15%.
Submitting Your Assessment
• Your research report must be submitted as a Microsoft Word document through Turnitin
on Blackboard.
• While most instances of plagiarism are unintentional (for example, forgetting to close a
quotation mark), the Turnitin originality report will reveal any form of plagiarism
(intentional or unintentional) and the use of Artificial Intelligence tools. Your research
report should have a Turnitin similarity index value of 15% or less. From the originality
report, the marker will check whether any part of your research report is potentially
plagiarised from other sources, which could result in mark penalties, as shown in the
marking rubric. Therefore, you should carefully review the originality report before your
final submission.
• You can resubmit your research report multiple times until the due time. However, after
three (3) resubmissions, Turnitin will only release the Similarity Report 24 hours after your
resubmission.
• After uploading your research report, click the Submit to Turnitin button. Then, download
your digital receipt in your Assignment inbox to confirm successful submission (refer to
the Turnitin student guide)—UQ ITS rule: No digital receipt, no submission.
• The deadline for submission is based on the time your assessment has been successfully
uploaded on Turnitin, as recorded by Turnitin, not the time you tried to upload it.
• Many students fail to meet the deadline because they have internet connection problems on
their side, but they mistake it as an IT problem of UQ. If UQ has any internet connection
problems, it will keep a record of it.
• The only way to guarantee meeting the deadline is to submit your research report well
before the deadline.