INTERMEDIATE MACROECONOMICS
Accounting, Finance and Economics 2019/20 SEMESTER 2 AFE5022-B Intermediate Macroeconomics Assessment 1: 1500-2000 Word Essay (40% of total module marks) Submission Deadline: by 3pm Thursday the 2nd of April 2020 AFE5022-B – Intermediate Macroeconomics 2019/20 Individual Assignment Assessment weighting: 40% The deadline for submission: 3pm of the 2nd of April 2020 The coursework word limit is 1,500-2,000 words (excluding appendices and references). A word count must be shown on the front cover. Note that you are expected to use and sustain your arguments through recognised academic references. Your attention is drawn to the University policy on plagiarism and also the extra help provided by the Effective Learning office (e.g. referencing), based at the School. Also, it is important to reference academic studies. The mark awarded to the submission is decided by the following factors: 1. Understanding: Did the answer demonstrate a clear understanding of the relevant economic theories? Are the theories critically analysed? Are the theories correctly applied? Are assumptions clearly stated and discussed? Are the arguments supported with relevant academic references? 2. Clarity and Structure: Are the arguments presented in a clear, logical and well-structured fashion? Marks are awarded for a full answer to the question so your final mark will reflect the style, depth of knowledge, rigour, and clarity demonstrated in the submission. Attention is drawn to the University’s policy on plagiarism. How to submit coursework For the coursework submission procedure, please follow the instruction provided in the course manual. ASSIGNMENT QUESTIONS 1. C. Fred Bergsten* in his book “America in the World Economy” argues that the central goal of US economic policy should be elimination of the current account deficit. He adds that the only assured means to achieve this result is to eliminate the federal government’s budget deficit. Critically discuss this statement analysing twin deficit of the US economy. Refer to the uses-of-saving identity to explain your answer. Use diagrams to illustrate your arguments. 70 marks 2. Discuss how the national wealth could be affected if the country runs persistent trade account surplus. 30 marks TOTAL 100 MARKS *Bergsten, C. Fred, “America in the World Economy: A Strategy for the 1990s”, 1988, Institute for International Economics, Washington, D.C.