This assessment comprises of a 2000-word research paper on the following topic:
“The COVID-19 crisis and UK economy: What are the macroeconomic effects?”
You have been hired as a researcher by the Bank of England to write a paper on the macroeconomic effects of the COVID-19 crisis on the UK economy. You
are required to:
a) Investigate and explain the impact of the COVID-19 crisis on the key indicators of the UK economy (GDP, growth rate, unemployment, inflation, interest
rates and export earnings). Please refer to statistical data as well as relevant economic literature in your discussion.
b) Use the AS-AD model to illustrate the effects of the COVID-19 crisis on the UK economy. Use theory and relevant graphs in your analysis
c) Use the IS-LM model to illustrate the effects of the COVID-19 crisis on the UK economy. Use theory and relevant graphs in your analysis.
d) What policy proposals would you suggest to the UK government in order to facilitate an economic recovery from this crisis?
This is an inquiry-based assignment. You are expected to examine the effects of the COVID-19 pandemic on the UK economy by using macroeconomic
theory and adopt an evaluative approach. You will need to research the topic, using relevant textbooks and articles from academic journals. Your essay
should demonstrate your understanding of macroeconomic analysis, as well as the effects of the crisis on core economic variables.
Your assignment should attempt to address the following components:
Descriiption: What is the topic/issue and context? Contextualize the topic and provide background information.
Analysis and evaluation: Use the models / theories (we cover in this module) to understand the issue. Which economic variables are affected?
In your analysis you must use both the IS-LM and the AS-AD models that we cover in this module. You should investigate in detail, which economic variables
are affected. Please note that this is a module is about macroeconomics and you should concentrate on these macroeconomic concepts/theories when
writing your assignment.
The assignment will be marked against the following assessment criteria:
• Knowledge, understanding and presentation of the IS-LM and AS-AD macroeconomic models and the ability to use these models to conduct a coherent
• Coherent and critical analysis of the macroeconomic situation faced by UK amid the COVID-19 crisis. You should employ macroeconomic theory and
macroeconomic statistics from reliable sources in your discussion (25%)
• Evidence of wider reading and the quality of the analysis based on relevant literature (25%). You must cite at least ten sources. These sources should
comprise of textbooks and high-quality journal articles.
• The quality of your essay in terms of structure, clarity and coherence. The tables, figures and graphs should be properly constructed and labelled. The APA
style of referencing should be carefully followed (20%).
• It is suggested that your essay consists of distinct numbered sections (titled appropriately, as in a standard journal article). Example: 1. Introduction, 2. The
COVID-19 crisis and UK’s economy situation 3. Analysis using the IS-LM and AS-AD models 4. Discussion (based on findings in the section above and
literature), 5. Conclusions 6. References
• Scanned hand-drawn graphs are accepted. However, screen shots from the textbook/ lecture slides are not accepted and will be marked down. Do not
“screenshot” graphs from lecture slides or the textbook.
• Screenshots of tables instead of appropriate tables with data are not accepted and will be marked down.
• Use captions for tables and graphs and always provide the sources from these tables and graphs have been taken.