In: Economics
Technical requirements:
Maximum length: 12 A4 pages, 12-pt font, 1,5 spacing (excluding
appendices). Kindly note
that markers will only review the first 12 pages.
Referencing: Harvard method
Please note that this assignment is relatively time intensive.
Your group is therefore
advised to study the relevant material and commence working on the
assignment as
early as possible.
1. As a macroeconomic analyst, you have
been tasked to present some insights into the
impact
of macroeconomic variables
on business performance to
a business forum.
Using relevant examples from
an organization or sector of your choice, discuss how the
following macroeconomic
variables affect the growth and/or decline of businesses:
a. A fall in interest
rate
b. High government
spending
c. High unemployment
rate
d. High Inflation
e. Increasing GDP
[25 Marks]
2. Use the AD-AS model to explain and
illustrate, from a theoretical perspective, that by
choosing the right combination
of measures (policies) it is possible for the economy
to grow without it
experiencing inflationary pressures. Which macroeconomic
policies
are critical in ensuring that
the price level does not increase? (N.B: In your answer,
discuss a minimum of 4
examples of macroeconomic policies that can be adopted)
[25 Marks]
3. Using a case study of an
organisation, describe the nature of business of the selected
organisation and explain the
impact of fluctuations of the exchange rate on business
performance. Identify and
explain three factors that may have contributed to exchange
rate volatility in your
country during the last 12 months and three approaches that
can
be adopted by the business to
minimise the negative impact of exchange rate volatility.
[25 Marks]
Marking guidelines
Please pay attention to the mark allocation for each of the subsections above.
Focus, logic and structure play a critical part in answering any
assignment question. Your
assignment should be focused on answering each question asked. You
answer should have
a clear logical structure and your arguments should be
systematically developed. Sentences
and paragraphs should follow one another logically. A collection of
more or less disjointed
comments on the literature is commonly referred to as
“fragmentation”. Avoid fragmentation