ECON5006 Macroeconomics 2 coursework 2020-21

The coursework for this module counts for 30% of the total module marks.
Problem set questions
1. The United Kingdom and the 2007-2009 financial crisis (max 150-200 words)
In 2007, higher oil demand from rapidly growing developing countries like China and India and the slowing of oil production in places like Mexico, Russia, and Nigeria, drove up oil prices sharply from around the $60 per barrel level. By the end of 2007, oil prices had risen to $100 per barrel and they reached a peak of over $140 per barrel in July 2008. The run up of oil prices led to a negative supply shock. However, after July 2008 and by the end of 2008, oil prices fell sharply to their previous $60 per barrel level.
Although the financial crisis did not at first have a large impact on UK spending, it did eventually hit the economy sometime after the Lehman Brothers bankruptcy in September 2008 causing a great negative demand shock that lasted through 2009. Please note that the demand shock was almost double in terms of size-effect compared to the supply shock from the rise of oil prices.
AD-AS analysis can help us understand business cycle episodes. Use the AD-AS model to present graphically and briefly discuss the macroeconomic effects described above as these are predicted by macroeconomic theory. Following next, use the GDP growth (%) and inflation (%) 2006-2009 UK data found in the Excel file ‘ECON5006 coursework data’ and discuss whether their behaviour/evolution agrees with your AD-AS analysis.
2. China and the 2007-2009 financial crisis (max 150 words)
The financial crisis at first had very little impact on China but with the collapse of Lehman Brothers all this changed. China’s economy had been driven by extremely strong export growth but starting in October 2008 exports collapsed, falling at around a 20% annual rate through August 2009. The collapse of exports caused a strong negative demand shock.
Instead of relying solely on the economy’s self-correcting mechanism, the Chinese government implemented a massive fiscal stimulus package in 2008, which was three times larger than the US fiscal stimulus package relative to GDP. In addition, the People’s Bank of China (the central bank), took measures to autonomously ease monetary policy.
AD-AS analysis can help us understand business cycle episodes. Use the AD-AS model to present graphically and briefly discuss the macroeconomic effects described above as these are predicted by macroeconomic theory. Following next, use the GDP growth (%) and inflation (%) 2006-2009 Chinese data found in the Excel file ‘ECON5006 coursework data’ and discuss whether their behaviour/evolution agrees with your AD-AS analysis.
3. The Bank of England interest rate increase in August 2018 (max 300-350 words)
On August 2018, the Monetary Policy Committee of the Bank of England decided to raise interest rates by a quarter percent, from 0.50% to 0.75%. This was the highest interest rate level since March 2009. Use the closed (small) economy IS-LM and AD-AS models
Page 2 of 6
(equations; variables; graphs; discussion) to
present graphically and briefly discuss the short- and long-run macroeconomic effects of the interest rate change as these are predicted by macroeconomic theory. Additionally, can you research and identify the economic rationale behind the BoE interest rate increase? Use the UK quarterly data found in the Excel file ‘ECON5006 coursework data’ and discuss whether their behaviour/evolution agrees with your macroeconomic analysis.
Remember (for all exercises): You are required to examine the effects as those are predicted by macroeconomic theory and adopt an evaluative approach. In your analysis you must use the macroeconomics models of the economy that we cover in this module. You should investigate which macroeconomic variables are affected and discuss short- and the long-run macroeconomic effects. Please also note that this is a module about macroeconomics and you should concentrate on these when writing your assignment – do not get diverted into financial markets questions about specific financial policies or business policies or similar questions.
Learning outcomes
• The ability to apply theoretical understanding to the analysis of key policy events and questions within macroeconomics
• The ability to appreciate the main issues involved in testing macroeconomic hypotheses and to recognise the limitations of different macroeconomic frameworks
• The ability to understand the role of key assumptions in structuring a variety of macroeconomic models and determining their conclusions
• The ability to assess the impact of macroeconomic shocks and institutions in determining key economic variables in a variety of models
• The ability to use a range of data sources to evaluate competing explanations of macroeconomic phenomena to support your discussion
Assessment criteria
The assignment will be marked against the following assessment criteria:
1. The United Kingdom and the 2007-2009 financial crisis (25%)
• Knowledge, understanding and presentation (properly constructed model graphs and equations) of the AD-AS model; appropriate terminology; ability to use the model to conduct a coherent analysis (15%)
• Quality of the analysis based on the use of real macroeconomic data and statistics; presentation of all relevant supporting material such as properly constructed tables and figures of data (10%)
2. China and the 2007-2009 financial crisis (25%)
• Knowledge, understanding and presentation (properly constructed model graphs and equations) of the AD-AS model; appropriate terminology; ability to use the model to conduct a coherent analysis (15%)
• Quality of the analysis based on the use of real macroeconomic data and statistics;
Page 3 of 6
presentation of all relevant supporting material such as properly constructed tables and figures of data (10%)
3. The Bank of England interest rate increase in August 2018 (50%)
• Knowledge, understanding and presentation (properly constructed model graphs and equations) of the IS-LM and AD-AS models; appropriate terminology; ability to use the models together to conduct a coherent analysis (25%)
• Quality of the analysis based on available relevant academic literature; the use of real macroeconomic data and statistics; presentation of all relevant supporting material such as properly constructed tables and figures of data (20%)
• Appropriate academic referencing following the Harvard system (5%)
Reading and sources
You should cite academic publications only (academic journal articles, books, working papers/publications from institutions such as the NBER, World Bank, OECD or IMF). Please avoid using and citing press articles, newspapers, magazines (such as The Economist). Blogs or internet sources such as Wikipedia or Investopedia are not accepted as legitimate references and will result in loss of marks. Your references should be academic journal articles.
Assignment length
There is a combined word limit of 700 words for your essay (no 10% margin). It is expected that an important part of your time and effort will be devoted to developing graphical and model analysis. You need to think carefully about how to write your essay within the permitted number of words, using an appropriate mix of text, figures, graphs and tables. Words that exceed the maximum allowed will not be marked.
The specified word count includes everything except section titles, tables and their captions, graphs and their captions, and the list of references.
Avoid appendices as they will not be marked.
Assignment format
You need to download and use the Word template provided on Moodle (‘ECON5006 coursework template’).
Assignments not complying with this, will be returned to students unmarked.
• Assignments must be word-processed, and all pages numbered. Font must be Arial size 12, 1.5 spaced and aligned left.
• References must comply with the Harvard system (see the Oxford Brookes University library guide). Do not provide a second list, e.g. Bibliography.
Page 4 of 6
• Equations and notations should be written using Microsoft’s Word equation editor or similar software (e.g. MathType or MathMagic or MathCast). Screenshots of equations from lecture slides or books or other sources are not accepted and will be marked down.
• Scanned hand-drawn graphs are accepted but camera photos are not accepted and will be marked down.
• Screenshots of tables or graphs from lecture slides or books or other sources are not accepted and will be marked down. You need to construct your own tables and graphs with original data.
Hand-in date and instructions
The assignment must be submitted in PDF format through Turnitin (available on Moodle for this module) by Wednesday 25 November 2020 13:00 (UK time).
You need to submit one file where the submission title on the Moodle system should be your student number e.g. ‘123456789’ and the PDF file name should include your student number e.g. ‘ECON5006-123456789.pdf’.
Your name should not appear anywhere on the assignment that you submit as a result of anonymous marking that is being introduced across the University for the Start of 2015/16 academic year. If you would like to read the full and formal regulations on anonymous marking you can find them in the University Regulations, section A3.6: http://www.brookes.ac.uk/regulations/
General rules
• Your essay must comply with rules governing academic integrity.
• You should avoid plagiarism by citing all the papers that you have used.
• If you quote what others have said, you should place these within quotation marks (“ ”) and cite the source and page number. Do not lift sentences from original sources and insert them into your writing without enclosing them in double-quotation marks. Doing so is tantamount to plagiarism, and your essay will be submitted to the Academic Conduct Officers for review.
• Use direct quotes very sparingly, if at all, only when it is necessary. In most cases, essays in economics do not need direct quotes, since we are mostly referring to information such as facts, figures, theories, etc. (i.e., you are not referring to artistic or literary works, famous historical remarks or speeches, etc.). This means that you must paraphrase original sentences, rather than depending on direct quotes (paraphrased sentences must be accompanied by parenthetical in-text references).
• Limit references to works that are publicly available and in English only.
• Do not cite / refer to “lectures” (this module or otherwise). Refer instead to available sources (mostly books and journal articles) that contain the relevant information.
• Please note that any form of cheating will not be tolerated. The module leader reserves the right to ask you to provide evidence that the essay submitted is your own work. This may require that you attend a viva (oral exam) on the coursework. In particular, you are
Page 5 of 6
strongly advised not to copy material from papers which are available on the internet and present this as your own work. This can be easily detected, and appropriate disciplinary action will be taken.
Indicative marking grid for questions 1 and 2
Criteria
1-39%
40-49%
50-59%
60-69%
70%+
Knowledge, understanding and presentation (properly constructed model graphs and equations) of the AD-AS model; appropriate terminology; ability to use the model to conduct a coherent analysis
No use of the requested models or wrong models used. No description of model variables, equations. Poor discussion.
Some use of the requested models but major mistakes found. Some description of model variables, equations. Some attempt to provide an adequate discussion but few or no linkages to the topic.
Some use of the requested models but mistakes found. Description of model variables, equations, provided. Provides an adequate discussion but few or no linkages to the topic.
Good use of the requested models with minor mistakes found. Good description of model variables, equations, provided. Good discussion provided with linkages to the topic.
Comprehensive use of the requested models. Comprehensive description of model variables, equations, provided. Comprehensive discussion provided with clear and robust linkages to the topic.
Quality of the analysis based on the use of real macroeconomic data and statistics; presentation of all relevant supporting material such as properly constructed tables and figures of data
Weak discussion. Inappropriate data presentation. Inadequate or very limited data analysis. Data, rather than ‘findings’, are communicated.
Adequate discussion. Some use of economic concepts, limited use of graphs/tables in support of the discussion.
Inappropriate data presentation. Inadequate or limited data analysis. Acceptable communication of findings.
Adequate discussion. Use of economic concepts and examples and graphs/tables in support of the discussion. Acceptable data
presentation. Adequate data analysis. Acceptable communication of findings.
Good discussion. Different viewpoints considered, good use of economic concepts and examples, graphs/tables in support of the discussion. Clear data presentation. Sound data analysis. Clear communication of findings.
Comprehensive discussion. Different viewpoints considered, comprehensive use of economic concepts and examples, substantial graphs/tables in support of the discussion. Meaningful and clear presentation of collected data. Insightful data analysis. Meaningful and clear communication of findings.
Indicative marking grid for question 3
Criteria
1-39%
40-49%
50-59%
60-69%
70%+
Knowledge, understanding and presentation (properly constructed model graphs and equations) of the IS-LM and AD-AS models; appropriate terminology; ability to use the model to conduct a coherent analysis
No use of the requested models or wrong models used. No description of model variables, equations. Poor discussion.
Some use of the requested models but major mistakes found. Some description of model variables, equations. Some attempt to provide an adequate discussion but few or no linkages to the topic.
Some use of the requested models but mistakes found. Description of model variables, equations, provided. Provides an adequate discussion but few or no linkages to the topic.
Good use of the requested models with minor mistakes found. Good description of model variables, equations, provided. Good discussion provided with linkages to the topic.
Comprehensive use of the requested models. Comprehensive description of model variables, equations, provided. Comprehensive discussion provided with clear and robust linkages to the topic.
Quality of the analysis based on available relevant academic literature; the use of real macroeconomic data and statistics; presentation of all relevant supporting material such as properly constructed tables and figures of data
Weak discussion, no journal papers used, little or no use of economic concepts displayed. Inappropriate data presentation. Inadequate or very limited data analysis. Data, rather than ‘findings’, are communicated.
Adequate discussion of a few journal papers, some use of economic concepts, limited reading of the literature and/or graphs/tables in support of the discussion. Inappropriate data presentation. Inadequate or limited data analysis. Acceptable communication of
Adequate discussion of journal papers, different viewpoints considered, use of economic concepts and examples, limited reading of the literature and/or graphs/tables in support of the discussion. Acceptable data
presentation. Adequate data analysis.
Good discussion of journal papers, several different viewpoints considered, good use of economic concepts and examples, moderate reading of the literature and/or graphs/tables in support of the discussion. Clear data presentation. Sound data analysis. Clear communication of findings.
Comprehensive discussion of journal papers, several different viewpoints considered, comprehensive use of economic concepts and examples, substantial reading of the literature and/or graphs/tables in support of the discussion. Meaningful and clear presentation of collected data. Insightful data analysis. Meaningful and clear
Page 6 of 6
findings.
Acceptable communication of findings.
communication of findings.
Appropriate academic referencing following the Harvard system
Little or no attempt at paraphrasing and/or referencing. The essay does not use template and does not follow the guidelines described in the assignment brief.
Some attempt at paraphrasing and referencing. Referencing not according to the Harvard system. Typos found. Some statements are rather vague. The essay does not use template fully and does not follow the guidelines described in the assignment brief.
Adequately paraphrased and referenced. Referencing mostly correct but not according to the Harvard system. Some typos found. Some statements are rather vague. Correct use of the template.
Comprehensively paraphrased and referenced.
Referencing mostly correct but not all according to the Harvard system. Vague statements found. Correct use of the template.
Comprehensively paraphrased and referenced. Clear writing. Correct use of the template.
Order Now

Calculate a fair price for your paper

Such a cheap price for your free time and healthy sleep

1650 words
-
-
Place an order within a couple of minutes.
Get guaranteed assistance and 100% confidentiality.
Total price: $78
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?