Assessment item 3
Assignment 3: Problem Question
Value: 15%
Due date: 16-Jan-2017
Return date: 07-Feb-2017
Length: Approximately 1000 words.
Submission method options
Alternative submission method
Task
Assignment 3 consists of one problem question worth 15 marks. Before attempting this assignment you are expected to have read Text chapters 12, 13 and 14. You are encouraged to make use of additional sources. Sources used in your answer should be fully referenced in APA 6th style.
Answer the following question ensuring that you apply economic principles or theory related to understanding the health of the economy and the need for government intervention to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answer with diagrams and examples as necessary.
Question (15 marks)
Explain why a stable economic equilibrium requires the economy to be operating at an output level at which the aggregate demand curve, the long run aggregate supply curve and the short run aggregate supply curve all intersect.
Rationale
This assignment will give you practice in preparing an answer to a question which is similar to the type of questions you are likely to be asked in the examination.
The question addresses the following learning outcomes:
Learning Outcome 5: be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income.
Learning Outcome 6: be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives.

Marking criteria

Criteria HD (85%) D (75-84%) C (65-74%) P (50-64%) N (0 50%)
Academic writing clearly communicates meaning (10% weighting). Language features and structures are used to convey meaning effectively, clearly, concisely, unambiguously, and in a tone appropriate to the audience and purpose with no spelling, grammatical, or punctuation errors. Language features and structures are used to convey meaning effectively, clearly, unambiguously, and in a tone appropriate to the audience and purpose with few spelling, grammatical, or punctuation errors. The text contains some errors in spelling, grammar, word choice, and structure, lacks clarity occasionally, and may not be concise, but the meaning is apparent to the reader with little effort. The text contains some errors in spelling, grammar, word choice, and structure, lacks clarity occasionally, and may not be concise, but the meaning is apparent to the reader with little effort.
Fails to meet criteria for a pass.
Academic writing includes APA 6th referencing (10% weighting). Referencing is comprehensive, demonstrates academic integrity, and conforms exactly to APA style conventions Referencing is comprehensive, demonstrates academic integrity, and conforms to APA style conventions with fewer than three minor errors or omissions which don't impact on the transparency and traceability of the source or the demonstration of academic integrity. Referencing is comprehensive and mostly accurate according to APA style conventions. Up to eight minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity. Referencing is comprehensive and mostly accurate according to APA style conventions. Frequent minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don't impact on the transparency and traceability of the source, or the demonstration of academic integrity. Fails to meet criteria for a pass.
Analyses the production of goods and services in aggregate and the requirement for macroeconomic stability to identify the conditions under which government intervention in production and income distribution is recommended. (60% weighting).
The answer synthesises the theory in relation to the analysis of macroeconomic stability with new insights providing an in-depth application of the theory of government macroeconomic intervention along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the correct government policy decisions within the context of specific macroeconomic circumstances.
The answer evaluates the theory in relation to the analysis of macroeconomic stability and recognises that movements away from equilibrium may require government intervention. Decisions based on analysis correctly reflect the options available given specified market conditions and are presented through a sound argument showing good judgement. However, minor errors have been found in the narrative or use of diagrams. The answer correctly interprets the theory in relation to the analysis of macroeconomic stability and recognises that movements away from equilibrium may require government intervention. Decisions with respect to government intervention based on analysis correctly reflect the options available under the conditions specified. However, some errors have been found in the narrative or use of diagrams. The answer identifies the most important elements of theory for the analysis of macroeconomic stability and recognises that movements away from equilibrium may require government intervention. Decisions with respect to government intervention based on analysis correctly reflect the options available under the conditions specified Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn. Fails to meet criteria for a pass.
Provision of examples to support, illustrate or elaborate the application of the economic principles or theory to macroeconomic conditions prevailing in Australia and to macroeconomic policy decisions (20% weighting).
The answer provides an example or examples which support the synthesis of the theory in relation to macroeconomic stability and the intervention of government to impact on production and the distribution of income with new insights to support the analyse of the question and/or the decisions based on this analysis. The narrative makes a strong link between the example(s), existing theory and new insights and the application of each to policy. The answer provides an example or examples which support the evaluation of the theory in relation to macroeconomic stability and the intervention of government to impact on production and the distribution of income and/or the decisions based on this analysis. The narrative makes a strong link between the example(s) and theory and their application to policy. The answer provides an example or examples which support the interpretation of the theory in relation to macroeconomic stability and the intervention of government to impact on production and the distribution of income to support the analysis the question and/or the decisions based on this analysis. The narrative makes the link between the example(s) and theory and their application to policy with only minor lapses in logic. The answer provides an example or examples which exhibit the most important elements of theory in relation to macroeconomic stability and the intervention of government to impact on production and the distribution of income to support the analysis of the question and/or the decisions based on this analysis. However the narrative does not make a convincing link between the example(s) and theory and subsequent application to policy. Fails to meet criteria for a pass.

Presentation
Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. Sources used in your answer should be fully referenced in APA 6th style. The answer to the question should be divided into three parts:
Part 1: Introduction
The introduction sets up your response by succinctly stating your understanding of the issues, what you think is the best way to analyse the situation – including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be.
Part 2: Analysis
The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to break this section up into a number of sub-parts – one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications.
Part 3: Conclusion
In the conclusion you briefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered.

Requirements
Sources used in your answer should be fully referenced in APA 6th style.
Assignments must be submitted through Turnitin. Further details about submission in Turnitin are provided in Appendix 1.