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Macroeconomic Performance of Australia from 1990 to 2016

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Added on  2021-06-17

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The performance has been evaluated in terms of real GDP growth rate, inflation, unemployment rate, exchange rate, net export and cash rate. Introduction 3 Relation between real GDP growth and inflation and unemployment rate 3 Real GDP growth and inflation 3 Real GDP growth and unemployment rate 4 Relation between net export and real exchange rate between Australia and USA 6 Australia’s cash rate and Federal Reserve’s fund rate 8 Macroeconomic Outlook for Australia 9 Conclusion 9 Reference list 11 Introduction Australia is the 14th largest economy

Macroeconomic Performance of Australia from 1990 to 2016

   Added on 2021-06-17

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Running Head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the StudentName of the UniversityCourse ID
Macroeconomic Performance of Australia from 1990 to 2016_1
ECONOMICS ASSIGNMENT1Executive Summary The paper sheds light on macroeconomic performance of Australia for a considerably longperiod extending from 1990 to 2016. The performance has been evaluated in terms of real GDPgrowth rate, inflation, unemployment rate, exchange rate, net export and cash rate. In theprocess, the report tries to find whether there exists any relation between trend in real GDPgrowth rate and that of inflation and unemployment. The decision regarding cash rate is ofteninfluenced by the movement of interest rate in other nation. In this regard, focus is also given totrace out any association between cash rate and federal’s fund rate. The movement of gradebalance is examined along with the movement of official exchange rate. Finally, based on thepast performance brief description is given on future outlook of the economy.
Macroeconomic Performance of Australia from 1990 to 2016_2
ECONOMICS ASSIGNMENT2Table of ContentsIntroduction......................................................................................................................................3Relation between real GDP growth and inflation and unemployment rate.....................................3Real GDP growth and inflation...................................................................................................3Real GDP growth and unemployment rate..................................................................................4Relation between net export and real exchange rate between Australia and USA..........................6Australia’s cash rate and Federal Reserve’s fund rate.....................................................................8Macroeconomic Outlook for Australia............................................................................................9Conclusion.......................................................................................................................................9Reference list.................................................................................................................................11
Macroeconomic Performance of Australia from 1990 to 2016_3
ECONOMICS ASSIGNMENT3Introduction Australia is the 14th largest economy in the world. The nation in the past few decadeshave accounted an outstanding growth and development. Service sector is the most dominatingsector of the economy making the highest contribution in GDP. Australia also has a strongindustrial and agricultural sector. The nation shares international relation with a number ofdeveloped and developing nations. Trade account a significant portion of Australia’s GDP. In thelast few years however Australia has accounted a decline in is economic growth rate (RBA,2018). The steady performance of Australian economy makes it an interesting area of research. Relation between real GDP growth and inflation and unemployment rate One of the most important macroeconomic indicators of a nation is its gross domesticproduct. Gross domestic measure is a measure of aggregate output produced in a nation. As GDPis a representative measure of aggregate valuation of produced goods and services market pricesare used to quantify the volume of output in terms of its market price. In GDP computation useof current year market price gives nominal GDP while the use of a certain base year market priceprovides GDP at constant price. In order to measure economic growth of a nation percentagechange in GDP is taken into consideration (Mankiw, 2014). Use of real GDP growth rateconsiders as a more useful measure of economic growth as is free from the effect of inflation.The growth rare in real GDP thus expected to have a relation with rate of inflation. As a risingreal GDP growth is an indicator of economic expansion it influences unemployment rate throughcreation or contraction of job opportunities. Summary Statistics Real GDP growth rate InflationUnemployment Mean3.09719Mean2.678878Mean6.725926StandardError0.232268StandardError0.281428StandardError0.364156Median3.530801Median2.487923Median6.1Mode#N/AMode#N/AMode6.9StandardDeviation1.2069StandardDeviation1.462341StandardDeviation1.892209SampleVariance1.456608SampleVariance2.138441SampleVariance3.580456Kurtosis1.740095Kurtosis2.465388Kurtosis-0.18119Skewness-1.20633Skewness1.1543Skewness0.875874Range5.38214Range7.021843Range6.7Minimum-0.37533Minimum0.250417Minimum4.2Maximum5.006807Maximum7.27226Maximum10.9
Macroeconomic Performance of Australia from 1990 to 2016_4

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