The effects of China’s demand for iron ore on the Australian economy
In your essay, you are expected to illustrate:
• The broad details of how China’s demand and Australia’s investment and supply of iron ore have evolved over the past 15 years (in brief)
• the impact of this event on the Australian macroeconomic cycle and labour demand
• the consequent challenges for fiscal and monetary policy in managing the macroeconomic cycle
• the opportunities and risks to the future of Australia’s ongoing iron ore (and more broadly its economic) engagement with China.
Sample Solution
