Assessment 1:
Researching the contributions of Indigenous Australians
Word limit: 1000 (+/- 10%)
Assessment overview
The purpose of this assignment is to study the achievements of Indigenous role models and identify their contributions to Australian society.
Assessment details
To commence this task student should work in pairs to share research about the life stories of Indigenous people (one each) and the ways in which they have contributed to Australian society.
You will each write up a summary and evaluation of the findings from your research in regards to the individual Indigenous Australian that you chose to investigate and submit your research individually.
Please note: the collaborative elements of this assessment are to formulate ideas, encourage the development of your understandings from another perspective and begin to articulate your thoughts before the formal writing of your individual submission.
Assessment criteria
1. Summary and description of the history of the person, including background/upbringing, key event/experiences, motivations/setbacks (500 words).
2. Evaluation of how this person has contributed to Australian society, including examples of contributions, windows/barriers to success (500 words)
3. Composition of your summary including referencing.

Assessment 1:Note: In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted. The maximum possible points is 40.
Maximum points: 40 points
1. The following excerpt is from the case study “The Euro in crisis: Decision Time at the European Central Bank”. (distributed in the class)

“……a bailout for Greece would send a signal to other indebted member states that the ECB would step in if private lenders become nervous.”

Answer the following questions with appropriate diagram and using AD-AS model, Money market, aggregate expenditure model, and forex market (as required). For part a, b and c appropriate diagrams are MUST. Else points will be deducted.

a. When ECB went out for bail out then what was expected to happen to the interest rate in Greece? (10 points)

b. Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices. (10 points)
c. If government of Greece also increases (assume) the expenditure (expansionary fiscal policy) then what do you think can potentially happen to prices? Provide the relevant diagram and explain your answer.(10 points)
d. Overall do you think that bail out of Greece is healthy policy from the perspective of ECB? Answer this one in context of the Case study. ( 5 points)

e. Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case study. Page limit is one page. (5 points)

Assessment 2:
Note: In mentioned cases provide a neat diagram to explain your answer. Make sure to label axes properly. Else points will be deducted. The maximum possible points is 40.

1. The following information is from International Business Times (April 4, 2012)

“China has reacted to U.S. QE in the past by expressing dismay, primarily given the overweight U.S. dollar position in their foreign currency reserves.”

(Source: http://www.ibtimes.com/exnet/chinese-reaction-fed-qe3-not-happy-797141 )
Explain the dismay of Chinese government due to quantitative easing (QE) using the FOREX market model discussed in the class. Make sure that you consider the undervalued exchange rate of China while answering the question. Provide neat diagram (s) to explain your answer. (20 points)
2. Let’s assume the following information for an economy.

C=10000+0.6Y
I=2000
G=5000
X=600
M=400
[All the notations are standard as discussed in the class]

a. Find the size of the multiplier in this economy. (3 points)
b. Find the short run equilibrium output. (7 points)
3. The following news was issued in Bloomberg.

“Thailand’s baht fell for a second week to reach the lowest level since 2010 and the benchmark stock index led losses in Southeast Asia on concern worsening political unrest will spur further capital outflows”.

(http://www.bloomberg.com/news/2013-12-27/baht-falls-a-second-week-on-concern-protests-to-spur-outflows.html )

a. Why do you think that there is going to be capital outflow? (3 points)

b. If indeed there is going to be huge capital flight, what should be the policy taken up by Bank of Thailand to avoid a free fall of their exchange rate and how they can achieve it (explain at least one instrument)? (5+2=7 points)