Economics of Decision Making Research Paper 2022

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ECONOMICS ASSIGNMENT
ECONOMICS OF DECISION MAKING

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Abstract
This paper discusses the state of the Australian economy at this moment. Using the important
measurement of the macroeconomy such as the GDP growth rate, inflation, unemployment,
the paper has found out that the economy has been doing moderately at this point. In some of
the measurement, the economy is doing perfectly, while some has failed to achieve the target
of the government. The paper also discusses the three problems that the economy can
experience in the coming 12 months based on the given data analysis.

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Contents
1.0 Introduction..........................................................................................................................4
2.0 Discussion of topic...............................................................................................................4
3.0 Conclusion..........................................................................................................................10
Reference..................................................................................................................................11

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1.0 Introduction
The economy is an important concern for the government and politics of any country. The
economic measurements such as the GDP growth rate, inflation helps in understanding the
performance level of the economy over a specified period. In terms of economic
performance, Australia is one of the strangest economies of the world. The government had
successfully dealt with the global financial crisis of 2007 (Wto.org, 2019). Where in different
parts of the world, the aggregate demand for the goods and services was low, Australia’s per
capita wealth kept on increasing. However, there have been recent changes in the global
economy which has affected the performance of the Australian economy. The objective of the
study is to discuss the economy of Australia through different measurements. This discussion
can help in the understanding of the Australian economy at the present moment.
2.0 Discussion of the topic
State of the Australian economy
GDP growth rate: GDP growth rate is the most widely used measurement for the
performance of an economy. It is the rate at which the output of the economy is increasing
year by year. The present growth rate of the Australian economy is 0.8%. This is still better
that what the economy showed in the January month of the same year. The performance of
the economy in terms of GDP growth rate has been better between the years 2015-2019.
Now, the economy is deviating from the national goal of the country. With this slow
economic growth rate, it will also be impossible for the economy to reach 2 trillion dollars by
2020 (Wilson et al. 2018). One of the main reasons for the reduction in the GDP growth rate
of Australia in recent years is the depression in the Chinese economy. China is the largest
trade partners of Australia and hence it is influenced by the economy of China. Apart from
that, different global chain operations are breaking down due to poor diplomatic relationship
between the countries. This has also affected the GDP growth rate of Australia in the recent
years.