Economics - Assignment (Solution)

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the student:
Name of the University:
Author note

ECONOMICS ASSIGNMENT2
Executive summary:
This report was aimed to discuss the economic performance of the state through utilising the
graphical presentation and statistical explanation of the macroeconomic parameters like GDP
growth rate, unemployment rate, inflation rate and others. In addition to this, the report has
tried to trace, whether the Australian economy has been performing according to the theory
of the business cycle or not. From the analysis it has been found that Australian economy is
one of the largest mixed economy that has been going through large amount of growth during
the last three decades. From the analysis of the Real GDP of the stat and the various other
macroeconomic parameters of the Australia it can be seen that the state has been performing
pretty well during the recent years. To conclude the report has argued that Australian
economy has high potential to become one of the largest economy around the world if it
holds its current pace of growth.

ECONOMICS ASSIGNMENT3
Table of Contents
Introduction:...............................................................................................................................4
Relationship between Australia’s real GDP growth rate and inflation rate:..............................5
Real GDP growth rate and unemployment rate:........................................................................6
Evidence of the business cycle:..................................................................................................8
Relationship between net exports and the real exchange rates of USA and Australia:.............9
Association between Australia’s Cash rates and the Federal Reserve Fund’s rates in USA:. .10
How movements in the Federal Reserve Fund’s rates drive movements in the Cash rates:....12
Macroeconomic outlook of Australia:.....................................................................................12
Conclusion:..............................................................................................................................14
Reference:................................................................................................................................15
Appendix:.................................................................................................................................17

ECONOMICS ASSIGNMENT4
Introduction:
Australia is one of the mixed developed economy, which has been going through
large amount of transformation since last two decades in its various economic factors.
Australia presently has been facing its 27th consecutive growth year, which has been mainly
driven by the strong performance of the mining, agriculture and service sector (Downes et al.
2014). Depending upon the large share of the tertiary and robust performance of the primary
sector, Australian economy ranks 1p9th as per the nominal Gross Domestic Product (GDP)
and presently Australia is trying hard to become a sustainable economy that can withstand
against the demand or supply side shock in future. Though the Australian GDP growth rate
has been fallen in recent years, however, overall GDP value has increased largely depicting
the fact that the Australian economy has been evolving as one of the largest economy around
the world (Markovic et al. 2016). With considerable amount of employment and job creation,
economy of the state has transformed itself largely from where it was during three decades
ago. Considering the open market scenario of the Australian economy, it can be seen that the
state has recently reduced the gap in exchange rate between Australian dollar (AUD) and US
dollar (USD) depicting good trading performance of the state (Rees et al. 2016).
Under this scenario, this report is aimed to discuss the economic performance of the
state through utilising the graphical presentation and statistical explanation of the
macroeconomic parameters like GDP growth rate, unemployment rate, inflation rate and
others. In addition to this, the report will trace, whether the Australian economy has been
performing according to the theory of the business cycle or not. Moreover, it will portray the
relationship between the Federal Reserve rate and the cash rate of Australia in order to
showcase the loanable fund market of the economies and depict a comparison between these
two trading partners. Moving forward, the report will provide a forecast for the Australian
economy and to conclude the report will give a summarised overview of its findings.