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Business Economics - Assignment PDF

   

Added on  2021-05-30

15 Pages3263 Words127 Views
Economics
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Business EconomicsName of the Student:Name of the University:Author’s Note:
Business Economics - Assignment PDF_1

1Table of ContentsIntroduction......................................................................................................................................2Relationship between Australia’s Real GDP Growth Rate and Inflation Rate...............................2Relationship between Australia’s real GDP Growth Rate and Unemployment Rate......................4Evidence of Business Cycle.............................................................................................................5Relationship between Net Exports and the Real Exchange Rates between USA and Australia.....5Relation between Australia’s Cash Rate and Federal......................................................................8Macroeconomic Outlook of Australia...........................................................................................10Conclusion.....................................................................................................................................11Reference List................................................................................................................................12
Business Economics - Assignment PDF_2

2IntroductionThe assignment will shed light over the different economic variables of the Australian economyand these variables will be discussed in accordance with the real time data available in the WorldBank website. Furthermore it would be investigated whether there is a relationship between thesevariables or not. Finally the assignment would conclude on the basis of the entire analysiswhether the Australian economy would face an inflation or a recession in near future. Relationship between Australia’s Real GDP Growth Rate and Inflation RateThe Gross Domestic Product or GDP is the final monetary value of all the finished goods andservices produced within the boundaries of a nation within a specific time period. The grossdomestic product incorporates the public and private consumptions, private inventories,construction costs which are paid-in as well as the foreign balance of trade. Therefore, on abroader sense it can be stated that GDP is a measure of the overall economic activity of aneconomy. Most commonly GDP measures the overall economic activity of a nation and at thesame time provides a broader idea about the standard of living of the country (Hatfield-Dodds etal., 2015). The GDP can be categorized as nominal GDP and real GDP. The nominal GDP is notadjusted against any value while the real GDP is adjusted for inflation. Inflation is defined as thesustained rise in the general price level of the goods and services. In relation to this the rate ofinflation will them be defined as the rate at which the price level of the goods and servicesincrease over time.
Business Economics - Assignment PDF_3

3199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016-15.00-10.00-5.000.005.0010.0015.0020.0025.0030.0035.00Real GDP Growth Rate and Inflation RateGDP Growth RateInflation RateFigure 1: Real GDP Growth Rate and Inflation Rate (1990-2016)(Source: Databank.worldbank.org. 2018)The graph above depicts the relationship growth rate and rate of inflation in Australia for thetime period of 1990 through 2016. It can clearly be observed that Australia has alwaysexperienced a subtle and stable inflation rate which is sometimes regarded as good for the healthof the economy by the economists. Whereas the GDP growth rate has depicted significantfluctuations in its value for this given time period.
Business Economics - Assignment PDF_4

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