Macroeconomics questions
Read the following article and answer 2 questions
Australians can buy lobster for as little as $33 as prices fall due to demand dropping from China in the wake of the coronavirus epidemic. China is one of the biggest buyers of Western Australia's rock lobster but due to the closure of the Chinese live animal trade, shing industries are fearing the worst. There are now tonnes of the crustacean sitting in holding tanks, forcing industries to sell them at reduced prices. The Geraldton Fishermen's Cooperative (GFC) were expecting the Chinese New Year period to be their busiest time with around 50 to 60 tonnes of lobster being handled each day. But CEO Matt Rutter said they have taken a massive blow in the wake of the market closure and fear it will be some time before it reopens. Lobsters that once sold for $48 are now selling for $15 less. We are estimating that we have a month's worth of western rock lobster that we will continue to sell out of WA.' Mr Rutter told the ABC. He said there were a few hundred tonnes that had been shipped before the market shut down - with the western rock lobster making up a large proportion. Mr Rutter said that despite the low prices for consumers, staff and shermen within the industry were at a loss. 'Because we don't have products owing through the door, we don't have trucks driving or people at the depots receiving a lot of the staff that would normally be carrying that out have unfortunately been told to stand down until the product starts owing again.' he said. 'lt's not just the shers who are hurting, but everyone who relies on the industry for income.' GFC can hold 220 tonnes of lobster in refrigerated seawater storage tanks that keep them from four to six weeks. Mr Rutter said the industry will continue to use other international markets like Japan and the USA. There have been 12 conrmed cases of coronavirus in Australia. and more than 17,000 cases and 360 deaths globally. 1')!- Present your arguments and ensure your analysis is logical and consistent. Referencing and Formatting. Use appropriate diagrams in your analysis. Exceptionally clear discussion on determinants of Ad-AS in the context of macroeconomic equilibrium. Excellent articulation of the equilibrium process and impact of listed factors on output and (un)employment. Clear explanation and illustration of the AD-AS model adjustment back to long- run equilibrium Well-structured. and questions are fully addressed. Language is used skilfully and effectively to express concepts in detail. Referencing is accurate. Describe and utilise the fundamental tools, methods and language of economics to analyse resource allocation issues Describe the impact of incentives and use economic models to illustrate how agents and economies respond to incentives Identify the limitations of the market mechanism and analyse the role of government in affecting markets and decision-making in the general economy Apply economic principles and concepts to analyse business cycles and monetary and scal policy in an open macroeconomy, and to demonstrate the signicance of trade and globalisation
