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ECON1102 economic growth
economic growth
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Short Answer Question Assignment
ECON1102
Details
• Value: 10% of final mark
• Submission date: 1 August by 4pm
Submission Procedure
You should submit your short answer question response electronically via the course
Moodle website by the submission due date (Turnitin link will be available).
Write your surname and student ID in the file name.
Write up your responses to questions in a Word document (or other word processing
software). Paste the graphs from Excel to the Word file (Excel workbooks will not be
accepted).
Short answer question responses submitted after the deadline will be penalized at a rate of
5% per day. An assessment will not be accepted after 5 days from the deadline unless
special consideration has been approved. Special consideration will only be granted in the
case of serious illness and will require full and convincing documentation of that illness.
Further Instructions
Length of submission: Not more than 5 pages, this should include all plots and answers. Do
not exceed the 50 or 100 words limit per answer, as indicated. If words count limit is not
indicated, it means that no verbal explanation is expected, the plots will provide a sufficient
answer.
Write up: Clearly label which question you are answering by using the question numbers. Do
not copy the questions in your submission. (This creates needless clutter and will cause
Turnitin to subject your paper to added scrutiny for plagiarism.)
Figures: It should be clear what the figure is showing (i.e., title, axes, lines, etc. well labelled)
without the reader needing to refer to the text. Marks will be deducted if figures are not
properly labelled.
Research: You should be able to answer the questions using the lecture and textbook
material. You can also conduct independent research (this is optional and not a
requirement) using articles from the news media.
Total marks available: 25, marks are as stated per question.
Plagiarism: All answers will be checked for plagiarism using the Turnitin system into which
they are uploaded. Plagiarism is a serious matter, and cases discovered will be dealt with
accordingly.
Q 1: (7 marks) GDP Data
a. (1 mark) Use “Table 1. Key National Accounts Aggregates” to plot quarterly nominal
GDP, quarterly real GDP, quarterly real GDP per capita, for 1980-2024. Title each
graph and state the relevant information in notes: source, etc.
(Note: use the “Original” or “Seasonally Adjusted” series. Clarify what series you
have used in the notes of your figure.).
b. (1 mark) Real GDP is adjusted for inflation and is used to measure changes in
economic output. It is an indicator of economic growth. The overall trend is that real
GDP has been increasing in Australia. However, there are periods during which real
GDP declined. When real GDP declined for more than 2 consecutive quarters (i.e. 6
months), we say that the economy is going through a recession. Identify the
approximate years of one or more recessions in the plot you reported in your answer
for part (a). (Clearly state which plot you are referring to.)
c. (1 mark) Use the ABS data on National Income Account (Table 11. National Income
Account, Current prices) to create a measure of the labour share of total income by
dividing compensation of employees by national income for each year. Similarly,
create a measure of capital income share by dividing gross operating surplus by gross
national income. Plot both measures of income shares for 1959-2024. (Note: use the
“original” series).
d. (2 marks) Briefly describe the patterns and trends in labour and capital income
shares. (Maximum of 100 words).
e. (2 marks) Use “Table 1. Key National Accounts Aggregates” to plot the Household
Savings Ratio for the period December 2007 to March 2024. (Note: use the “original”
series). Summarise developments in Australia’s household savings over the period.
(Use the plot and maximum of 50 words to answer)
Q 2: (12 marks) Labour Force Data
Scroll down on the ABS webpage to access data downloads.
Clearly state what data release you are using, for example, the May data released on
13/06/2024.
Part I: Using the ABS data in “Table 1. Labour force status by Sex, Australia - Trend,
Seasonally adjusted and Original”:
a. (1 mark) Plot unemployment rate (for all persons) for 1980-2024.
b. (1 mark) Plot participation rate (for all persons) for 1980-2024.
(Note: use “trend” series for your plots).
c. (2 mark) Summarise the trends in unemployment and participation rates.
Report average rates in your answer. (maximum of 100 words)
d. (2 marks) Recall your answer to 1(b): summarise unemployment rate trends
during a recession. (Report using a table or maximum of 50 words)
Part II: Use data in “Table 22. Underutilised persons by Age and Sex - Trend, Seasonally
adjusted and Original”, to:
e. (3 marks) Show how unemployment rate has evolved since 1980s for
different age groups. (To simplify presentation, use the following age groups:
15-19; 20-24; 35-44).
(Note: use “Original” or “Seasonally Adjusted” series for your plots. Clarify what
series you have used in the notes of your figure.).
Briefly summarise your main findings. (maximum of 50 words)
f. (3 marks) Explain how differences in structural unemployment can explain the
differences in unemployment rates between the age groups. (maximum of 100
words)
Q 3: (6 marks) Labour force participation over the life cycle.
In Chapter 3, we learned how individual consumption and saving vary over the life
cycle. Figure 3.7 describes how consumption, income and saving evolve over the life
cycle.
g. (3 marks) Use ABS data in “Table 01. Labour force status by age, social marital
status and sex” to plot participation rate over the life cycle. Explain if it is
consistent with the income patterns in Figure 3.7 in the textbook. Use May
2024 data to produce the plot. (Use plots and maximum of 100 words).
h. (3 marks) Using the ABS data in “Table 01. Labour force status by age, social
marital status and sex”, generate plots to show how labour force participation
rate over the life cycle has changed over time for men and women, by
comparing participation rates patterns in May 1980 and May 2024. Briefly
summarise your main findings (Use plots and maximum of 100 words).