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Thapar Institute Of Engineering and Technology, Patiala CLASS-03D419EE2F677C1D Q1 The report u 05 05 Document Details Submission ID trn:oid:::1:2785649879 Submission Date Dec 15, 2023, 6:43 PM GMT+5:30 Download Date Dec 15, 2023, 6:47 PM GMT+5:30 File Name Sample2_ECON.docx File Size 52.8 KB 6 Pages 1,976 Words 11,101 Characters Page 1 of 8 - Cover Page Submission ID trn:oid:::1:2785649879 Page 1 of 8 - Cover Page Submission ID trn:oid:::1:2785649879

How much of this submission has been generated by AI? 27% of qualifying text in this submission has been determined to be generated by AI. Caution: Percentage may not indicate academic misconduct. Review required. It is essential to understand the limitations of AI detection before making decisions about a student's work. We encourage you to learn more about Turnitin's AI detection capabilities before using the tool. Frequently Asked Questions What does the percentage mean? The percentage shown in the AI writing detection indicator and in the AI writing report is the amount of qualifying text within the submission that Turnitin's AI writing detection model determines was generated by AI. Our testing has found that there is a higher incidence of false positives when the percentage is less than 20. In order to reduce the likelihood of misinterpretation, the AI indicator will display an asterisk for percentages less than 20 to call attention to the fact that the score is less reliable. However, the final decision on whether any misconduct has occurred rests with the reviewer/instructor. They should use the percentage as a means to start a formative conversation with their student and/or use it to examine the submitted assignment in greater detail according to their school's policies. How does Turnitin's indicator address false positives? Our model only processes qualifying text in the form of long-form writing. Long-form writing means individual sentences contained in paragraphs that make up a longer piece of written work, such as an essay, a dissertation, or an article, etc. Qualifying text that has been determined to be AI-generated will be highlighted blue on the submission text. Non-qualifying text, such as bullet points, annotated bibliographies, etc., will not be processed and can create disparity between the submission highlights and the percentage shown. What does 'qualifying text' mean? Sometimes false positives (incorrectly flagging human-written text as AI-generated), can include lists without a lot of structural variation, text that literally repeats itself, or text that has been paraphrased without developing new ideas. If our indicator shows a higher amount of AI writing in such text, we advise you to take that into consideration when looking at the percentage indicated. In a longer document with a mix of authentic writing and AI generated text, it can be difficult to exactly determine where the AI writing begins and original writing ends, but our model should give you a reliable guide to start conversations with the submitting student. Disclaimer Our AI writing assessment is designed to help educators identify text that might be prepared by a generative AI tool. Our AI writing assessment may not always be accurate (it may misidentify both human and AI-generated text) so it should not be used as the sole basis for adverse actions against a student. It takes further scrutiny and human judgment in conjunction with an organization's application of its specific academic policies to determine whether any academic misconduct has occurred. Page 2 of 8 - AI Writing Overview Submission ID trn:oid:::1:2785649879 Page 2 of 8 - AI Writing Overview Submission ID trn:oid:::1:2785649879

Sample 1. A) The significant impact of the COVID-19 pandemic on the Australian economy resulted in a loss of $158 billion in gross domestic product (GDP) as opposed to the pre-pandemic approach During this period Australia the government struggled with several major fiscal challenges (Australian Bureau of Statistics, 2022). Following are four big, important economic challenges that the government had to address. Fiscal Policy: The government had to develop a budget to provide assistance to people and businesses affected by the pandemic These policies included services such as cash grants, wage subsidies and tax incentives. In addition, the government was responsible for ensuring that these policies were designed to provide sustainable stability without causing long-term volatility in domestic and international markets (OECD, 2020). Unemployment: The pandemic was responsible for the sharp rise in unemployment rates across Australia. The government had to come up with measures to help those who had lost their jobs to the epidemic. As part of these initiatives, the Job Keeper program was implemented, which provided wage subsidies to companies to encourage them to continue employing their employees (Janda & Lasker, 2020). Trade globally: The pandemic has disrupted international trade, which has had a significant impact on the Australian economy. The government needed to introduce a policy to sustain the supply chain and provide Treatment of the disease: In order to control the spread of the virus and provide assistance to the healthcare system, the government was required to develop policies. Lockdowns, social distancing measures, and the distribution of vaccines were all methods that were included in these policies. In the midst of the epidemic, it was essential for the government of Australia to address these macroeconomic challenges. The actions taken by the government in response to these concerns served to lessen the impact that the epidemic had on the economy and provided assistance to the process of rebounding. B) The macroeconomic concept known as expansionary policy seeks to stimulate economic growth by expanding the money supply, lowering interest rates and increasing government spending This is achieved through expansionary policy. To enhance aggregate demand and increase productivity, this policy is often used during periods of weak economic growth or crises. The Keynesian view that government intervention can help stabilize the economy in a recession is a basis for expansionary policy (Janda & Lasker, 2020) When it comes to the economy of Australia, the government decided to undertake an expansionary policy in order to mitigate the adverse impact that the COVID-19 epidemic had on the economy. A number of measures were included in the strategy, including a reduction in interest rates, an increase in government spending, and the provision of stimulus packages to various firms and families. The purpose of these actions was to accomplish the goals of enhancing economic growth and generating aggregate demand. An expansionary policy was implemented, which assisted in mitigating the adverse effects that the pandemic had on the economy of Australia. Following the two significant drops in GDP that occurred concurrently with the height of limitations across Australia, the strategy resulted in a robust recovery of economic growth. It is projected that the level of GDP has suffered a total loss of $158 billion when compared to its Page 3 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 3 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

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trajectory prior to the pandemic, despite the fact that growth is returning closer to the rates that existed before the pandemic. As a conclusion, the expansionary policy is an effective instrument that governments can use to encourage economic growth during times of economic downturns. Increases in aggregate demand, increases in employment, and greater economic stability are all possible outcomes of the program. Nevertheless, the policy must to be utilized with caution because, if it is not applied correctly, it has the potential to result in inflation as well as other adverse impacts. 2 A) The term "currency effect" refers to a phenomenon that describes how changes in the currency affect the financial behavior of consumers. There is a correlation between a person’s wealth and disposable income, which in turn leads to an increase in consumption Because a person’s wealth decreases, his or her disposable income also decreases, which in turn increases their resource consumption reduction function (Srivastava, 2020) and works. For example, suppose a person has a disposable income of $1000 and their marginal quality of consumption is 0.8. If their wealth increases by $500, their disposable income increases by $1,500. Their consumption increases to $400, which is due to their limited consumption habits and changes in disposable income. So you get a new consumption function $C = C_0 + 0.8 * $1500 = $C_0 + $1200. B) Changes in future earnings expectations are likely to have a significant impact on resource performance. For example, if an individual expects his or her income to increase in the future, he or she may want to spend more on desires such as vacations, dining, and entertainment This will lead to fewer tendencies to eat and has transformed the user into greater increased activity. On the other hand, if an individual believes that his or her income will decline in the future, he or she may want to save more and reduce spending on items deemed desirable This gave marginal attitude that the user decreased, this growth led to more user- friendly resources (Srivastava, 2020). For example, suppose an individual expects future income to increase by $10,000. If their marginal propensity to consume is 0.8, the change in consumption will be: ΔC = bΔYd = 0.8($10,000) = $8,000 This implies that the person will increase the consumption by $8,000 due to expected future income C) The interest rate adjusted for inflation is called the real interest rate. The following are some of the ways in which changes in real interest rates can affect consumption activity. Rising real interest rates reduce the amount of money individuals have available for discretionary spending. This is because the cost of borrowing is increasing, which eventually leads to a decrease in the amount of money in circulation (Srivastava, 2020). If there is less money available for discretionary funds, the consumption activity suffers as a result. This is because there is so little money available, for whatever reason. Page 4 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 4 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

For example, suppose an individual has an autonomous consumption of 1000, a marginal propensity to consumption of 0.8, and a disposable income of 5000. This person’s consumption function is C=1000+0.8(5000) =5000 If the real interest rate increases from 2% to 4%, the disposable income of the individual decreases to 4500. The consumption function for this individual becomes: C=1000+0.8(4500) =4600 Thus, an increase in the real interest rate leads to a decrease in the consumption function of the individual. 3 A) A theory in economics known as the crowding out effect contends that an increase in expenditure by the public sector leads to a reduction or even a complete elimination of spending by the private sector. When the government raises taxes or borrows money to pay its expenditures, it results in a decrease in the amount of money coming from the private sector and the demand for loans. It is possible that this will have a detrimental impact on economic activity and growth (Government and Fiscal Policy: Crowding Out, n.d.). The quantity of money and the demand for it are the two factors that determine the crowding out effect. At the same time as the government takes measures such as raising taxes or selling debt securities to raise funds, the willingness of consumers and businesses to spend less which can reduce the demand for loans at higher interest rates is also a contributing factor to this condition. By expanding its own currency, the government is able to participate in the spending of other banks. When it comes to crowding out impacts, there are three main categories: economic, social welfare and business impacts. The term "fiscal pressure" refers to when the government borrows and spends, which in turn limits the amount of money that the private sector spends and invests in. When government spending is on social welfare programs for the decline of private philanthropy, this phenomenon is known as "social welfare crowding out." In the context of a decline in private investment in infrastructure due to government spending on infrastructure, this phenomenon is known as "infrastructure crowding out." It is necessary to point out that the crowding out effect idea is in direct opposition to more established and well-known economic theories. These theories maintain that when the United States government spends money during times of sluggish economic activity, it actually leads to an increase in spending by consumers and businesses since it, in essence, puts more money in their pockets. Illustration of crowding out using loanable funds Market Page 5 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 5 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

When government borrows to fund expenditure, the demand curve for loanable funds shifts to the right from D LF to D ’ LF . This results to an increase in real interest rates from Q to Q ’ . The quantity of loanable funds increases from R to R ’ . The negative effect of crowding out is that the private sector will borrow less funds resulting to less capital accumulation. The less capital accumulation depicts slow economic growth in a country. B) Jim Tomlinson, an economic historian, stated in a piece he authored in 2010 that "all major economic crises in twentieth-century Britain have reignited simmering debates about the impact of public sector expansion on economic performance." The influence that the growth of the public sector has on the performance of the economy has been a subject of discussion for several decades. It has been suggested that the expansion of the public sector, in and of itself, but particularly when it is financed by borrowing from the state, has a negative impact on the economy of the nation (national economy). The potential for the problem, on the R R ' Q Q ' S L F D L F D ’ L F Quantity of loanable funds Real Interest Rate s Page 6 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 6 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

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other hand, has been curtailed in recent decades as a result of the mobility of money across international borders, which entirely undermines a straightforward concept of crowding out. Debates over the influence of public sector expansion on economic performance have frequently arisen as a result of economic crises that have occurred in Britain during the twentieth century. The contention is that expansion of the public sector, particularly when it is financed by borrowing from the state, has a negative impact on the economy of the nation as a whole. As a result of the global capital markets that have emerged in the 21st century, the possibility for this problem has been significantly reduced over the past few decades. A simplistic model of crowding, which assumes that government debt generates higher interest rates and less private investment, is incompatible with the assumption of international capital flows do the job entirely Regardless, global capital markets are much more complex than the basic model suggests the presence largely international finance in these decades Consequently, the potential that attendance has decreased. This allowed governments to borrow large amounts of money without raising interest rates, which in turn helped limit the number of outside meetings that could take place. Because of this, governments have been able to finance public sector expansion without competing with the private sector for investment (21st Century Crises, from the Global Financial Crisis to COVID, Seeking a New Economic Understanding). , Top Economists Say | University of Oxford, n.d. ) Reference 21st century crises, from the global financial crisis to COVID, demand new economic understanding, say top economists | University of Oxford. (n.d.). Www.ox.ac.uk. https://www.ox.ac.uk/news/2021-01-19- 21st-century-crises-global-financial-crisis-covid-demand-new-economic-understanding Page 7 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 7 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

Australian Bureau of Statistics. (2022, September 7). Economic gains and losses over the COVID-19 pandemic | Australian Bureau of Statistics. Www.abs.gov.au. https://www.abs.gov.au/articles/economic- gains-and-losses-over-covid-19-pandemic Government and Fiscal Policy: Crowding Out. (n.d.). Saylor Academy. https://learn.saylor.org/mod/book/view.php?id=31989&chapterid=10127 Janda, M., & Lasker, P. (2020, September 2). “Economy held together with duct tape” as Australia officially enters recession. Www.abc.net.au; ABC News. https://www.abc.net.au/news/2020-09-02/australian- recession-confirmed-as-economy-shrinks-in-june-qtr/12619950 OECD. (2020, April 14). Government support and the COVID-19 pandemic . OECD. https://www.oecd.org/coronavirus/policy-responses/government-support-and-the-covid-19-pandemic- cb8ca170/ Srivastav, A. K. (2020, February 28). Consumption Function. WallStreetMojo. https://www.wallstreetmojo.com/consumption-function/ Page 8 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879 Page 8 of 8 - AI Writing Submission Submission ID trn:oid:::1:2785649879

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