PART 2: AUSTRALIAN ECONOMY

Questions

1. Compare and contrast the following Australian economic indicators in six quarterly periods from March Quarter 2020 (almost before the COVID-19 pandemic) to June Quarter 2021:
   • GDP components
   • Unemployment rate
   • CPI and GDP deflator
   • Reserve Bank of Australia's official interest rate (cash rate)
2. Select three industries in Australia and analyse how the COVID-19 pandemic has affected their performance.

Note:

i) Your group must select at least one industry that experienced negative growth and at least one industry that experienced positive growth during this pandemic.

ii) Justify the periods for comparing these three industries' performance before and during the pandemic.

iii) Your group analysis should include but not limited to the theory of demand and supply in analysing the performance of your selected industries.

3.The Australian federal government implemented Job-Keeper subsidy to support businesses and employees who were facing severe economic impact at the onset of coronavirus pandemic. In the first phase of this federal government-funded JobKeeper scheme (30 March to 27 September 2020), eligible businesses and entities received $1,500 (before tax) per fortnight per employee to cover the cost of wages. During the extension phase of JobKeeper (28 September 2020 to 28 March 2021), this subsidy was reduced and targeted to those businesses that continued to be significantly affected by the economic downturn. After 28 March 2021, there have been requests made to the federal government by different economic sectors and groups to further extend and/or revive JobKeeper subsidy but the federal government rejected these requests.

Analyse the pros and cons of this JobKeeper subsidy to the Australian economy. Evaluate the economic rationale of the federal government in rejecting requests to further extend and/or revive JobKeeper subsidy after 28 March 2021.