闪电代写 -代写CS作业_CS代写_Finance代写_Economic代写_Statistics代写_代码代做_IT代写_加急帮助

Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

ECON7021

Policy Response

Context

We can use both the IS-LM (or IS*-LM* in the case of small open economies) and AD-AS models to illustrate short-run economic fluctuations and the movement to long-run equilibrium.

This assessment task, consisting of Part 1 and Part 2, is detailed on the following pages. For Part 1, the relevant topics are Topics 9 and 10. For Part 2, the relevant topics are Topics 10 and 11.

Part 1: Mundell-Fleming and AD-AS Models (Around 400 words)

You must complete this part of the assessment task for your allocated country, with the country allocation indicated in Table 1 below.

Table 1

Country Allocation

*Last* *digit* *ofyour* *eight-digit* *student* ID	*Country*
0 or 1	Sweden
2 or 3	Norway
4 or 5	Netherlands
6 or 7	Finland
8 or 9	Belgium

PLEASE NOTE:

• The countries you must use for Part 1 of the research report are based on the last digit of your complete student ID. So, for example, if your student ID is 44194358, then your allocated country for Part 1 is Belgium.

• The number in your student email address (e.g., S4419435) is not your student ID; it misses the last digit (i.e. 8 in this example). A 10-mark penalty (out of 100 marks) will be applied if you fail to follow the country allocation rules.

In the Impact Comparison research report, you already identified your allocated country’s overall fiscal and monetary policy mix2 in 2022. List that policy mix in Part 1 of this Policy Response research report, and then illustrate and fully explain the short-run and long-run effects of the fiscal and monetary policy mix, ceteris paribus (holding other things equal), using the Mundell-Fleming (IS*-LM*) and AD-AS modelling frameworks. Assume the economy was initially in long-run equilibrium.

On the next page are a few tips to consider when writing Part 1.

TIPS:

• Part 1 does not require collecting data for economic indicators.

• Revise Topics 9 and 10 before completing this assessment task.

• Do not provide details of the implemented policies. Instead, you only need to state whether the overall fiscal policy ofyour allocated country was expansionary or contractionary in 2022 and whether the overall monetary policy ofyour allocated country was looser (expansionary) or tighter (contractionary) in 2022.

• To illustrate the short-run and long-run economic impacts, you must include the Mundell-Fleming (IS*-LM*) and AD-AS model graphs. The graphs should clearly show the relevant movements of the curves and equilibrium variables. Ensure your graphs align with the appropriate IS*-LM* and AD-AS modelling frameworks of Topics 9 and 10. All allocated countries have floating exchange rates, so use the relevant IS*-LM* model.

• To explain the economic effects, you must refer to your IS*-LM* and AD-AS graphs.

Part 2: AD-AS Model (Around 800 words)

Suppose a small open economy with floating exchange rates faces an exogenous shock in the form of a financial crisis. The country’s government aims to stabilise output, while its central bank strives to stabilise prices. Assume the country is initially in long-run equilibrium at its full-employment output level.

• First, illustrate and explain the short-run and long-run effects of the financial crisis without policy intervention, ceteris paribus, using the AD-AS model framework of Topics 10 and 11.

• Second, consult peer-review journal articles to suggest an appropriate fiscal and monetary policy mix that the government and the central bank should implement in response to the financial crisis, ceteris paribus.

• Finally, illustrate and explain the short-run and long-run effects of your suggested fiscal and monetary policy mix using the AD-AS model framework of Topics 10 and 11. Your analysis should demonstrate how the policies will alleviate the adverse effects of the financial crisis.

On the next page are a few tips to consider when writing Part 2.

TIPS:

• Part 2 does not require collecting data for economic indicators.

• Revise Topics 10 and 11 before completing this assessment task.

• The scenario relates to a hypothetical small open economy with a floating exchange rate; thus, you are not required to consult country-specific sources.

• You need to recommend one fiscal policy and one monetary policy. The fiscal policy could be expansionary, contractionary or unchanged (that is, no policy action). And the monetary policy could be looser (expansionary), tighter (contractionary) or unchanged (no policy action).

• To motivate your recommended policies, you should cite peer-reviewed journal articles and include the full reference details of those sources in the reference list at the end of your document.

• To illustrate the short-run and long-run economic impacts, you must use the AD-AS modelling framework of Topics 10 and 11. Your graphs should clearly show the relevant movements of the curves and equilibrium variables.

• To explain the economic effects, you must refer to your AD-AS graphs.

References

References and citations must be inAPA 7threferencing style.

TIPS:

• Consult theAPA 7th referencing styleguide.

• If you directly quote the original content word for word, it must be in quotation marks.

• Only use sources written in English.

• You must cite and reference sources even when paraphrasing the original content.

• Having more in-text citations and references will reduce the number of words for the main body. But having too few in-text citations and references will lessen the report’s credibility. Therefore, you need to balance the two.

• Accessing peer-reviewed journal articles: You can access peer-reviewed journal articles through the UQ Library. Refer to the following guides to help you search for and identify relevant resources.