ECONOMIC PRINCIPLES

Submission method    Electronically or Via Moodle Submission
INSTRUCTIONS:
This assignment is intended to enable you to demonstrate effective use of some of the fundamental methods and tools of microeconomics and to apply elementary principles and models in the respective context of the questions. You are expected to communicate effectively using appropriate economics terminology and models, in the form of diagrams which should be incorporated into your discussion.
Although you can discuss answers with your class mates, the answers provided to the assignment must be your individual work. Plagiarism and copying off other students will be heavily penalised.
The total marks in the assignment are 10 marks.
When submitting the assignment, please ensure that the feedback form is attached with your final work. Also when submitting the assignment please SAVE THE FILE AS YOUR FIRST NAME AND LAST NAME. For example if your name is JOE BLOGGS SAVE THE FILE AS: JoeBloggsEconomicsAssignment1.doc.
Darren Poinen
Unit Coordinator
School of Business
Melbourne Institute of Technology

Question 1 (10 Marks) – Please illustrate answers with diagram
1.    What do you understand by the term “the business cycle”? Draw a business cycle diagram and explain its various phases.
(1 marks)
Business cycle is a cycle for the business, have expansion and contraction. If the company know that

2.    Define and explain the meaning of Real Gross Domestic Product, inflation and unemployment.
(2 marks)

3.    How would you expect these economic variables to behave over the business cycle?
(1 marks)

4.    Collect and graph the quarterly Australian economic statistics of GDP growth rate, inflation and unemployment rates over the last 5 years starting from 2004.
(2 marks)

5.    Using the information gained in question 4, what conclusion can you draw as to what stage(s) the Australian business cycle has experienced?

(2 marks)

Referencing and presentation                        (2 marks)