MACROECONOMICS ASSIGNMENT QUESTION

 

Part I (50%)

 

PURPOSE

The purpose of this assignment is to enhance learners’ understanding on the application of macroeconomics concepts and theories.

 

REQUIREMENT                      

Answer all the questions.

 

QUESTION 1 (CLO2)

 

a).  Illustrate and explain the Gross Domestic Product (GDP) and unemployment rate for Malaysia for year 2017-2020 using graphs.                                   (6)

 

b).  Discuss the roles of Malaysian government and Bank Negara Malaysia in mitigating the impacts of COVID-19 on Malaysia’s economy using three macroeconomic indicators.                   (9)

 

(Total: 15 marks)

QUESTION 2 (CLO1)

Given that information for Country A are as below

Component	$ (million)
Household consumption	25
Net investment	15
Government expenditure	35
Export	35
Import	10
Indirect taxes	25
Subsidies	100
Capital depreciation	10

 

(a) Calculate the GDP market price for Country A               (3)

(b) Calculate the GDP factor cost for Country A                   (3)

(c) Discuss the purpose of calculating Gross Domestic Product (GDP) for a country    (9)                                                                                                                                                                                                                     

(Total: 15 marks)

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QUESTION 3 (CLO1)

 

Given:     C = 300 + 0.75Y                  I = 400           G = 300                  T=100 

a) Determine the equilibrium level of income using expenditure and injection-leakage approach  (6)

b) Calculate the value of multiplier for this economy                  (3)

c).  Calculate the  equilibrium  level  of  income  when  there  is  an increase in investment from 400 to 500 using expenditure and injection-leakage approach.  (6)

d).  Discuss how discretionary fiscal policy and automatic fiscal policy are used in the economy in different economic situation.    (5)

 

(Total: 20 marks)

PART II (10%)

ONLINE CLASS PARTICIPATION (10%)

 

Discuss the following topic(s) in the forum and submit proof of your participation in the online discussions:

 

1. Choose any ONE discretionary fiscal policy in Malaysia in year 2021.
2. Describe the chosen discretionary fiscal policy and provide your own views on the possible effects of the policy for Malaysia’s economy.

 

 

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