Macroeconomics (UU-ECO-2001) Assignment 2: 20 per cent of module marks Instructions: Assignment 2 - Brief & Guidelines For the requirements of this assignment, you are required to: Use an aggregate demand and supply diagram to illustrate and explain how each of the following will affect the equilibrium price level and the real GDP. Describe and analyze the new situation (inflationary gap, recessionary gap, stagflation). How should the situation be rectified in order to return to full employment? Consumers expect a recession Foreign income rises Foreign price levels fall Government spending increases Workers expect high future inflation and negotiate higher prices now Technological improvement increase productivity Your assignment must be comprised of the following sections: Cover page and table of contents. Introduction Main body of the report (essay content, graphs for each of the above points indicating the new situation and review of literature. All the elements that are included in the report must be adequately analyzed and supported with material that is properly cited, paraphrased and referenced from a wide variety of external sources). Conclusions (bring together your main points, address the main points as indicated above and adequately summarize the findings of your assignment. Marking criteria: Element Weight% Presentation (General Presentation and APA referencing) 10 Essay content (graphs, analysis of each point, solutions so as to return to full employment) 70 Essay structure and organization 10 Language clarity and accuracy 10 The following points should be noted for this part of the assessment: This is an individual assignment. The total number of words for this assignment should be 1500 words (+/- 10%). This does not include the graphs, reference list and any appendices the report may include. The assignment should be your own work and properly referenced according to the requirements of the APA Referencing system. Literature should be sourced from a variety of external sources such as textbooks and journal articles. The assignment must be submitted in a single word document using the corresponding link found in the toggle titled "Course Assessment Point 2" and it will be automatically checked with "Turnitin". Accurate referencing of sources is crucial in this assignment. Please REFERENCE all sources using the APA referencing system and make sure that you are familiar with this. Please familiarize yourself with the regulations on late submission. This assignment carries a weight of 20% of the final module grade. The passing grade for this assignment is 60%. This assignment must be submitted on the due date (end of Week 2) by 11:59 pm (23:59 hours) VLE (UTC) time at the latest.