IBD / BA1

Assignment
Subject: BUSINESS ECONOMICS

Date Issued: 6 MAY 2011

Hand in by: 3 JUNE 2011

INSTRUCTIONS TO CANDIDATES:
1. Assessment Criterion – 30% Weighting.
2. Students must submit their assignments with a copy on a CD-Rom to the reception by 3:00pm on 3rd June
2011 at the latest. Assignments without a CD-Rom will not be accepted. Do NOT attach CDs to your
assignment with sellotape as it can damage the CD & result in loss of coursework.
3. No assignments or CDs will be accepted after the deadline and therefore a zero mark will be given to a
student who falls into this category.
4. Your assignment must be word-processed in Microsoft Word. All pages should be numbered.
5. You must keep an electronic copy of your assignment.
6. Students are assessed anonymously. You should put your KCB student registration number (but not your
name) on the front cover and on the top right hand corner of every subsequent page. Please do not
include your name anywhere on the document.
7. A Turnitin report must be submitted with your assignment. Please follow the instructions at the end of
this assignment.
8. Policy on Plagiarism:
a) The work that you submit must be expressed in your own words.
b) Plagiarism, which is presenting the views and/or words of another person as if they
are your own is strictly forbidden.
c) If you do use quotations from books, journals and or websites then these must be
placed inside quotation marks and referenced ideally using the Havard method.
d) If you do cite the views/ideas of another person then you must refer to this person in
the main body of the assignment, including the work cited in your bibliography.
Cite, in this context means to quote a passage, book or author in support of an
argument, etc.
e) Copying the work of a fellow student also constitutes plagiarism. It must be pointed
out, though, that any student allowing another student to copy part or all of his/her
assignment is just as guilty as the plagiariser. You should therefore protect your own
work, so as to avoid others copying your work, without you knowledge.
f) If you do not observed the above rules then this will lead to an allegation of cheating
and, if found guilty, you will incur a severe penalty which may involve having to leave
the College. Any repetition of plagiarism in any module will lead to expulsion from the
College.

Page 1 of 3
KCB IBD / BA1 BUSINESS ECONOMICS ASSIGNMENT JUNE 2011
Macroeconomic Analysis

“As the spectre of a double – dip recession looms over the republic even areas close to the heart of the
Irish capital are starting again to resemble the recession ravaged 1980’s.
The Irish government has to prepare the country’s population for yet another austerity budget in December
– its fourth in two years. Last week finance minister Brian Lenihan’s budgetary plans were thrown into
further chaos by more alarming economic data. Irish gross domestic product fell by 1.2% in the second
quarter of this year, unlike the rest of the eurozone, where growth is averaging about 1%.”
Henry McDonald
The Observer (Business: Economics)
26/09/10

Required

i) Explain the phrase “double – dip recession”.

[As part of your answer you must provide what characterises a recession together with how a
government formally identifies that its economy has entered a recession]
(16 marks)

ii) Explain the statement: “during the second quarter of 2010 Irish gross domestic product fell by 1.2%”.
(14 marks)

iii) The Irish trade unions have stated that the previous austerity budgets have failed. The unions have
proposed a Keynesian style stimulus package to revive the Irish economy.
Explain the expression “Keynesian style stimulus package”, detailing four specific policies that could form
part of such a package. As part of your discussion, explain how the economy is likely to respond, providing
an AS/AD schedule to illustrate the likely impact.
(50 marks)

iv) Over the last thirty years, “monetary policy” has been the primary tool which Governments have
employed to manage aggregate demand.
Explain how monetary policy can be used, in theory, to raise aggregate demand. You are required to detail
the possible effect that the policy may have on each component of aggregate expenditure.
What practical problem would Ireland have with respect to this type of policy?
(20 marks)
Total: (100 marks)

Page 2 of 3
KCB IBD / BA1 BUSINESS ECONOMICS ASSIGNMENT JUNE 2011
Turnitin UK

You will be required to put all written coursework through the Turnitin plagiarism checker before submission.
Go to www.submit.ac.uk

You should then set

yourself up with a
user account.

Click Sign Up
and then
Enrol as a Student

For this course enter the Turnitin Class ID CHECK YOUR COURSE NOTICE BOARD
And then the password CHECK YOUR COURSE NOTICEBOARD

Use your email address to set up your own user account.

Each student should create only one account.
You can then submit your work to be checked by Turnitin.
It is a college policy that all word-processed coursework should be checked in this way.

Page 3 of 3
KCB IBD / BA1 BUSINESS ECONOMICS ASSIGNMENT JUNE 2011