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LN12 | Economics for Business and Management

8 Pages1053 Words60 Views
   

University of Newcastle

   

Economics and Business Management (LN12)

   

Added on  2020-03-04

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In this assignment, economics for business and management, the history of the reserve bank of Australia's official cash rate ( graph ), show Australian inflation rate ( graph ), real GDP graph as AS to right/left. What are the benefits of economics in business and management, more other important related to business economics are discussed in an assignment.

LN12 | Economics for Business and Management

   

University of Newcastle

   

Economics and Business Management (LN12)

   Added on 2020-03-04

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Economics for Business and Management 1Economics for Business and Management1
LN12 | Economics for Business and Management_1
Economics for Business and Management 2IntroductionThis report outlines the Economic forecast of Australian economy. It is based on the economicperformance of the economy with the results of central bank decisions and monetary policy. Theeconomic growth of Australia is possibly remaining stable in next few months. The expectedgrowth rate of the economy is around 2.5% till the end of first quarter of 2018(TradingEconomics, 2017). The agendas like climate change, free trade were discusses in G20which will affect the export and imports of the economies (Flynn and Hughes, 2017). The reportwill help to understand the impact of global decisions on an economy. The unemployment ratewill also have possibility to increase due to crisis in mining, banking and real estate, whereasconstruction and affordable housing sector will remain boomed with continuous demand.Reserve bank of Australia cash rate is still stable so its impact on the banking sector andeconomy are also reported. The impact of Donald Trump decision will negatively impactAustralian economy with increase in demand of US$ and restrictions on free trade results tolower exports and imports in the country (Janda, 2017). 2
LN12 | Economics for Business and Management_2
Economics for Business and Management 3Economic forecast: Economic forecast can be said as a way of guessing the future economic condition of aneconomy. It is macroeconomic aspect of the study which predicts the situation on the basis of thegross domestic product, inflation rate or Unemployment (Mankiw, 2014). Decisions of thecentral bank are also important drivers for the economic growth forecast in a country. It isobserved that the cash rate of Australia in the current year is lowest in comparison to the pastyears. It is stable at 1.5 since the starting of the year 2017 which indicates the decision of centralbank towards strengthening the Australian dollar in the international market (Reserve bank ofAustralia, 2017). The lower cash rate indicates that the loans are cheaper in the country whichwills results to more consumption in households and industries due to higher loans in this sector.The high exchange rate is also looking problems due to which it is assumed that inflation andgrowth rate will arise a little bit at the end of the year.3
LN12 | Economics for Business and Management_3

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