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Assessment Description

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Assignment 3 consists of two problems worth 5 marks each. Text material which may be relevant to the question may be drawn from any of text chapters 12, 13 and 14.


Question 1


Using data from the Australian Bureau of Statistics (ABS) collect information on the consumer price index (CPI) and average weekly earnings for the period 2005 to 2015 inclusive. Employ annual figures.  Define and provide sources for the data obtained including the ABS catalogue number.


Calculate the rate of inflation based on the CPI and the rate of average weekly earnings growth and plot the inflation rate and weekly earnings growth on a single diagram using time on the horizontal axis.  Provide an economic interpretation of these time series plots.


Question 2


Employ the aggregate demand and supply model for the Australian economy, to analyse the consequences for real GDP and the general price level of the following scenarios. Confine your analysis to the short-run. In your response clearly state your assumptions and illustrate your answers with diagrams.


(a)   the price of iron ore, a major export product, increases substantially,


(b)   a favourable set of weather conditions leads to a substantial rise in Australian agricultural output,


(c)   the government spends significant money in developing a broadband internet network across the country,


(d)   the price of oil, a product Australia primarily imports, fall substantially.





The question addresses the following learning outcome:

  • be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.


Marking criteria

Learning objective: Academic writing.


High Distinction(85%+)

Highly developed skills in expression and presentation of ideas. Fluent writing style. No major grammatical and spelling errors. All references, including recent literature, cited and used accurately.

Distinction (75%-84%)

Well-developed skills in expression and presentation of ideas. Fluent writing style. No spelling errors, minor grammatical errors. Relevant references cited and used accurately.

Credit (65%-74%)

A satisfactory standard of expression. Relatively clear and concise in expression of ideas. Few spelling and/or grammar errors. Majority of references are presented and used accurately.

Pass (50%-64%)

Some inconsistency in sentence structure. Clarity of expression could be enhanced by some revision. Several spelling errors and/or poor grammar. Very limited references cited and used.

Fail (Less than 50%)

Poor communication of ideas due to careless writing and lack of proof-reading. Too many spelling and/or grammar errors. References not included or inappropriately applied


Learning objective: Research, content & knowledge related to learning outcomes.


High Distinction(85%+)                

Skilful use of data, theoretical knowledge and ongoing debate on the issue, and they are well integrated Contains insights and awareness of deeper and more subtle aspects of the relevant theory. There is clear evidence of researched/read more widely beyond the core materials

Distinction (75%-84%)

Skilful use of data, theory and recent debate, but they are not well integrated. Presents issues in the broader context and demonstrates breadth and depth of understanding of most aspects of the essay topic. There is evidence of having read beyond the core materials.

Credit (65%-74%)

Demonstrates knowledge of principles and concepts. Demonstrates good understanding of the relevant theory presented in the texts and readings.

Pass (50%-64%)

Contains limited use of theoretical knowledge. Fails to demonstrate awareness of market trends. While some literature is presented they purely descriptive and they are not well integrated.

Fail (Less than 50%)

Fails to demonstrate knowledge of key principles and concepts. There is very little evidence of having read material presented in core texts and readings. Contains only a few ideas and they are presented uncritically in a purely descriptive manner.



 Learning objective: Quality of arguments & analytical skills related to learning outcomes.


High Distinction (85%)                       

Provides well-argued articulated statements with supporting evidence. Evidence of originality and independent thought. Has highly developed analytical skills and consistently demonstrates high levels of critical analysis. Demonstrates ability to reflect on conclusions and their policy implications.

Distinction (75%-84%)

Provides well-argued and articulated statements, but the use of supporting evidence is not very recent. Evidence of independent thought. Has good analytical skills and is capable of good levels of critical analysis. Able to justify conclusions. Able to synthesise and draw conclusions from multiple perspectives.

Credit (65%-74%)

Well-reasoned arguments based on broad evidence from theory and practice. Demonstrates some evidence of critical analysis and evaluation. Able to apply fundamental concepts and to draw and justify conclusions.

Pass (50%-64%)

Arguments based on limited evidence. Demonstrates some evidence of analytical and evaluative skills but development of arguments is limited. Able to apply fundamental concepts and to draw and justify conclusions.

Fail (Less than 50%)

Little demonstrated evidence of ability to construct clear and coherent arguments. Little (or no) evidence of analytical and evaluative skills. Fails to draw on fundamental concepts and to justify conclusions.



Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. .



APA referencing must be used when citing literature. Assignments must be submitted through Turnitin.

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