Macroeconomic Indicators of Australia and USA

The paper includes the macroeconomic indicators of the real gross domestic product, rate of unemployment exchange rate along with the values of imports and exports. For the interest rate the cash rate of Australia had been taken into account. The second part of the paper shows the summary statistics of the various macroeconomic variables which have presented in the tables. The third part of the paper comprises of the pair wise graphs of the real gdp growth and inflation rate, real gdp growth with the rate of interest, unemployment rate and interest rates. The fourth part comprises of the various policy instruments taken by the government and lastly, the fifth part consists of the brief summary of the paper.

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

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Table of Contents
Executive summary....................................................................................................................2
1.Collection of data on macroeconomic indicators....................................................................3
2.The summary statistics of the macroeconomic variables........................................................6
3.Pairwise graphs of the macroeconomic variables.................................................................15
Policies of government.............................................................................................................20
Macroeconomy of Australia.....................................................................................................22
Conclusion................................................................................................................................23
Reference list............................................................................................................................24

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Executive summary
The paper includes the macroeconomic indicators of the real gross domestic product, rate of
unemployment exchange rate along with the values of imports and exports. For the interest
rate the cash rate of Australia had been taken into account. The second part of the paper
shows the summary statistics of the various macroeconomic variables which have presented
in the tables. The third part of the paper comprises of the pair wise graphs of the real gdp
growth and inflation rate, real gdp growth with the rate of interest, unemployment rate and
interest rates. The fourth part comprises of the various policy instruments taken by the
government and lastly, the fifth part consists of the brief summary of the paper.

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1. Collection of
data on macroeconomic
indicators
a. Value of real GDP
b. Rate of unemployment
year AUSTRALIA USA
1995 8.470000267 5.599999905
1996 8.510000229 5.400000095
1997 8.359999657 4.940000057
1998 7.679999828 4.510000229
1999 6.869999886 4.21999979
2000 6.28000021 3.99000001
2001 6.739999771 4.730000019
2002 6.369999886 5.78000021
2003 5.929999828 5.989999771
2004 5.389999866 5.53000021
2005 5.03000021 5.079999924
2006 4.78000021 4.619999886
2007 4.380000114 4.619999886
2008 4.230000019 5.78000021
2009 5.559999943 9.25
2010 5.210000038 9.630000114
2011 5.079999924 8.949999809
2012 5.21999979 8.069999695
2013 5.659999847 7.380000114
2014 6.070000172 6.170000076
2015 6.059999943 5.28000021
AUSTRALIA USA
1994 663034939582.04 10026408985500.00
1995 688424992380.96 10299024618300.00
1996 715126459415.52 10689963360600.00
1997 743491381828.94 11169624848700.00
1998 777519044571.69 11666663209400.00
1999 816535447394.95 12213269668400.00
2000 848732984009.73 12713058213400.00
2001 865139889945.95 12837135352100.00
2002 899771632525.69 13066422980900.00
2003 926636518197.18 13433168199500.00
2004 963712223078.42 13941713404100.00
2005 994457691605.88 14408093840400.00
2006 1022642934821.49 14792303791800.00
2007 1061271523267.56 15055395304800.00
2008 1100090360276.03 15011490541400.00
2009 1121242097879.43 14594842181900.00
2010 1144260547872.81 14964372000000.00
2011 1172307576320.87 15204019634600.00
2012 1217933084117.14 15542161722300.00
2013 1250080212993.17 15802855301300.00
2014 1282061484148.13 16208861247400.00
2015 1312204498894.69 16672691917800.00

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EXPORT IMPORT
YEAR AUSTRALIA USA YEAR AUSTRALIA USA
1995 17.91688487 10.60551 1995 19.88467 11.77667
1996 18.93919435 10.71072 1996 19.39314 11.90052
1997 19.17481105 11.0798 1997 18.9 12.26432
1998 19.59557692 10.4848 1998 20.47485 12.27494
1999 18.35395554 10.26828 1999 20.80216 12.92474
2000 19.44348189 10.66464 2000 21.60415 14.31854
2001 22.23518161 9.666071 2001 22.14891 13.13707
2002 20.78313613 9.132386 2002 20.79123 13.01727
2003 19.10300414 9.037519 2003 21.20985 13.41307
2004 17.21976483 9.625368 2004 19.93653 14.66955
2005 18.28530247 9.996398 2005 21.02931 15.50427
2006 19.90812669 10.65479 2006 21.72581 16.21883
2007 20.23056827 11.49791 2007 21.87698 16.46102
2008 20.18869866 12.5144 2008 22.7391 17.42701
2009 23.03850745 11.01166 2009 22.82648 13.75417
2010 19.8425192 12.3783 2010 20.87387 15.80415
2011 21.47284119 13.57379 2011 20.5051 17.31137
2012 21.51897381 13.60661 2012 21.76811 17.10802
2013 19.98771744 13.63931 2013 21.28586 16.58695
2014 21.07576502 13.62004 2014 21.50408 16.54362
2015 20.01296407 12.49904 2015 21.53442 15.39099

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2.The summary statistics of the macroeconomic variables
Column1 Real GDP growth rate for Australia
Mean 0.033077479
Standard Error 0.001951855
Median 0.036577668
Mode #N/A
Standard Deviation 0.008944522
Sample Variance 8.00045E-05
Kurtosis -0.975315165
Skewness -0.051174675
Range 0.030953366
Minimum 0.019227273
Maximum 0.050180639
Sum 0.694627067
Count 21
Column1 real GDP growth rate for USA
Mean 0.024653609
Standard Error 0.003777312
Median 0.026666258
Mode #N/A
Standard Deviation 0.017309818
Sample Variance 0.00029963
Kurtosis 3.178261967
Skewness -1.419334798
Range 0.074607292
Minimum -0.027755296
Maximum 0.046851996
Sum 0.517725782
Count 21
The growth rate of the real gross domestic product of Australia shows that it kept on
increasing from 1995 to 2015. The growth rate of the GDP is also positive in nature in case of
Australia. However, the rate of growth also increased at a fluctuating rate. The real gross

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domestic product of the United States of America is greater than the gross domestic product
of Australia. It also kept on growing from the year 1995 to 2015. However, in the year 2008
and 2009 the growth rate became negative in nature. The maximum growth rate for real gross
domestic product for USA is 0.046851996 and for Australia the maximum growth rate of the
gross domestic product is 0.050180639.
UNEMPLOYMENT OF AUSTRALIA
Mean 6.089524
Standard Error 0.28075
Median 5.93
Mode #N/A
Standard Deviation 1.286559
Sample Variance 1.655235
Kurtosis -0.37228
Skewness 0.684467
Range 4.28
Minimum 4.23
Maximum 8.51
Sum 127.88
Count 21
Column1 UNEMPLOYMENT RATE OF USA
Mean 5.977142868
Standard Error 0.367830277
Median 5.53000021
Mode 5.78000021
Standard
Deviation 1.685610087
Sample Variance 2.841281364
Kurtosis 0.131848224
Skewness 1.109018864
Range 5.640000105
Minimum 3.99000001
Maximum 9.630000114
Sum 125.5200002
Count 21

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In case of Australia, the rate of unemployment had been quite high ad it was around eight
percent. However, it kept on decreasing till the year 2013. The rate of unemployment
although increased after 2013 and went to six percent. The rate of unemployment is also less
than the rate of unemployment in Australia. The unemployment rate had been the least in
2008 for Australia which was around 4.23 percent. However the maximum rate of
unemployment had been 8.51 percent in the year 1996. In case of the United States of
America, the minimum rate of unemployment had been in the year 2000 and the maximum
rate of unemployment had been in the year 2010 where it was around ten percent. The rate of
unemployment in case of the united states of America had been mostly around five percent
although it started to increase from the year 2009 and after 2014 it has started to decrease.
Column1 INFLATION RATE USA
Mean 2.265611158
Standard Error 0.229945017
Median 2.337689937
Mode #N/A
Standard Deviation 1.053740446
Sample Variance 1.110368928
Kurtosis 0.925324684
Skewness -0.964493537
Range 4.194646563
Minimum -0.355546266
Maximum 3.839100297
Sum 47.57783431
Count 21
Confidence
Level(95.0%) 0.4796569
Column1
INFLATION RATE OF
AUSTRALIA
Mean 2.660028
Standard Error 0.258969
Median 2.615385
Mode #N/A
Standard Deviation 1.186744

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Sample Variance 1.408362
Kurtosis -0.29508
Skewness -0.01036
Range 4.402879
Minimum 0.224888
Maximum 4.627767
Sum 55.86059
Count 21
Confidence Level(95.0%) 0.540199
The rate of inflation kept on decreasing from the year 1995. Over the ten years, the inflation
rate had been around 2 percent which states that Australia had most of time achieved the
tartgeted inflation rate. The monetary policy of Australia states that the appropriate rate of
inflation is around 2 to 3 percent. Although in the year 1997 and 1998 it went to below one
percent. On the other hand, in case of the United States of America, the rate of inflation for
the ten year period also were around 2 to 3 percent which is the appropriate rate. However, in
the year 2009, the rate was negative which suggests recession.
Column1 EXCHANGE RATE OF USA
Mean 1.350850517
Standard Error 0.017442062
Median 1.313197636
Mode 1.353363107
Standard Deviation 0.276334229
Sample Variance 0.076360606
Kurtosis -0.335258987
Skewness 0.564650156
Range 1.132081248
Minimum 0.912908527
Maximum 2.044989775
Sum 339.0634799
Count 251
Confidence
Level(95.0%) 0.034352113
Column1 EXCHANGE RATE OF Australia

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Mean 0.770531076
Standard Error 0.009617525
Median 0.7615
Mode 0.7389
Standard Deviation 0.152370245
Sample Variance 0.023216692
Kurtosis -0.702656236
Skewness 0.211558473
Range 0.6064
Minimum 0.489
Maximum 1.0954
Sum 193.4033
Count 251
Confidence
Level(95.0%) 0.018941699
The exchange rate is the price of the currency of any particular nation in terms of the other
currency. The exchange rate mainly comprises of domestic currency and foreign currency.
The exchange rate is also known to have a base currency as well as counter currency. The
exchange rate was mostly around 0.7 percent over the ten years in case of Australia.
However, in the year 2011 and 2012 the rate of exchange in case of Australia had been one
percent.

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Column1 Net exports Australia
Mean -8420628137
Standard Error 2072641002
Median -8967531244
Mode #N/A
Standard Deviation 9498034278
Sample Variance 9.02127E+19
Kurtosis 0.150678168
Skewness 0.15825544
Range 40338170253
Minimum -26845120859
Maximum 13493049394
Sum -1.76833E+11
Count 21
Net exports for USA
Column1
Mean -4.5306E+11
Standard Error 46574221901
Median -5.03655E+11
Mode #N/A
Standard Deviation 2.1343E+11
Sample Variance 4.55523E+22
Kurtosis -0.761608849
Skewness 0.404412608
Range 6.81189E+11
Minimum -7.70947E+11
Maximum -89758000000
Sum -9.51426E+12
Count 21
The net exports have been negative for Australia which states that for most of the time the
exports had been less than the imports. The growth had been mostly negative all throughout
the decade. However, in the year 2001, in case of Australia the net exports have been positive
which states that the export had been higher than the imports and also in the year 2009, the

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net exports have been positive. The net exports for the United States of America also states
that the net exports have been negative which states that imports have been greater than
exports. In the year 1994, the net exports had been less compared to the rest of the years.

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Column1 CASH RATE FOR AUSTRALIA
Mean 4.738095238
Standard Error 0.313617616
Median 4.75
Mode 4.75
Standard Deviation 1.437176465
Sample Variance 2.06547619
Kurtosis -0.268187572
Skewness -0.197971212
Range 5.5
Minimum 2
Maximum 7.5
Sum 99.5
Count 21
Confidence
Level(95.0%) 0.654194883
Column1 INTEREST RATE OF USA
Mean 2.55952381
Standard Error 0.526380035
Median 1.82
Mode 0.16
Standard Deviation 2.412176354
Sample Variance 5.818594762
Kurtosis -1.794130757
Skewness 0.271431311
Range 6.33
Minimum 0.07
Maximum 6.4
Sum 53.75
Count 21
Confidence Level
(95.0%) 1.098009512
The interest rate that is been set by the Reserve bank of Australia is termed as the cash rate.
The cash rate had been the highest in the year 1994. The cash rate of Australia is known to
affect the rate of interest. The cash rate is known to affect the interest rate of other variable.
Although the cash rate had been quite high around 7 percent in the 1994, it kept on
decreasing. In the year 2015, the cash rate had been the minimum at 2 percent. For most of

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the time the rate of Australia had been around 4 to 5 percent. The interest rate provide by the
Federal Reserves states that the rate of interest had been highest in the year 2000. In the year
2011, the interest rate had been the least. The rate of interest decreased from the 1995.

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3.Pairwise graphs of the macroeconomic variables
1. Pairwise graph for inflation rate and real GDP
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
0.00
0.01
0.02
0.03
0.04
0.05
0.06
AUSTRALIA
INFLATION REAL GDP
YEAR
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
-1
0
1
2
3
4
5
-0.04
-0.03
-0.02
-0.01
0.00
0.01
0.02
0.03
0.04
0.05
0.06
USA
INFLATION Growth rate of real GDP

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2. Pairwise graph for unemployment rate and Real GDP for Australia and USA
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
1
2
3
4
5
6
7
8
9
0
0.01
0.02
0.03
0.04
0.05
0.06
AUSTRALIA
UNEMPLOYMENT REAL GDP

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1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
2
4
6
8
10
12
-0.04
-0.03
-0.02
-0.01
0
0.01
0.02
0.03
0.04
0.05
0.06
USA
UNEMPLOYMENTS REAL GDP
3. Pairwise graph of real GDP and exchange rate for Australia and USA

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1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
0.01
0.02
0.03
0.04
0.05
0.06
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
AUSTRALIA
REAL GDP EXCHANGE RATE
-0.04
-0.03
-0.02
-0.01
0
0.01
0.02
0.03
0.04
0.05
0.06
0
0.5
1
1.5
2
2.5
USA
REAL GDP EXCHANGE RATE

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4.
Pairwise graph of interest rate and real GDP for Australia and USA
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0
0.01
0.02
0.03
0.04
0.05
0.06
AUSTRALIA
INTEREST RATE REAL GDP
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
-0.04
-0.03
-0.02
-0.01
0
0.01
0.02
0.03
0.04
0.05
0.06
USA
INTEREST RATE REAL GDP
5.
Pairwise graph of exchange rate and net exports for Australia and USA

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1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
0
0.5
1
1.5
2
2.5
-900000000000
-800000000000
-700000000000
-600000000000
-500000000000
-400000000000
-300000000000
-200000000000
-100000000000
0
USA
EXCHANGE RATE NET EXPORT
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
-30000000000.00
-25000000000.00
-20000000000.00
-15000000000.00
-10000000000.00
-5000000000.00
0.00
5000000000.00
10000000000.00
15000000000.00
20000000000.00
Australia
EXCHANGE RATE NET EXPORT
Policies of government
The policies of the government which influences the growth of the economy are the
monetary policy and the fiscal policies. The rate of interest changes during the monetary
policy which is known to affect the supply of money. For increasing the spending of money
in the economy with the growth in the economy, the government will be losing its interest
rates. The government will also lower the interest rate for the rise in the supply of money.
The government will be lowering the rate of inflation in order to fight unemployment. The
fiscal policy is known to affect the aggregate demand with the changes in spending of the

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government along with taxation. The spending of the government and taxation will be
influencing the rate of interest along with inflation. The monetary policy is known to affect
the expansion of business, employment, net exports and the relative cost of savings. The
spending of the government and the rate of tax are being determined by the fiscal policy. The
fiscal policy can be of two types which is expansionary and contractionary in nature. The
contractionary fiscal policy will be used or reducing the spending of the government. This
particular type of fiscal policy can be utilized for reducing the spending governmet and the
sovereign debt which takes place as a result of asset bubbles and huge amount of inflation.
The fiscal policy also directly influences the expenditure of the government and it indirectly
effects the investment and consumption elements.
The monetary policy on the other hand are mostly enacted by the central banks by
manipulation of the money supply in the economy. the supply of money will be influencing
the rate of interest along with inflation. These are known as the major factors of the
employment , level of consumption and cost of debt. The expansionary monetary policy will
allow the central bank to buy treasury bills and also decrease the interest rates on loans.
These can help in the increasing of the monetary policy. Monetary policy is of two types
mainly expansionary and contractionary. The central bank of any country is known to adopt
either an expnsionary or a contractionary monetary policy.
The expansionary monetary policy will be mostly focussed expanding or in any case
increasing the supply of money in the economy. The contractionary monetary policy is
usually focussed on the deceasing of the supply of the money in the economy. The Reserve
Bank of Australia is known to use the tools of the monetary policy for increasing or
decreasing the supply of money. Inflation can also become huge as a result of the supply
shocks and also when the contractionary monetary policy is not suitable in nature. The
monetary policy is also important.

22
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The reserve bank of Australia is responsible for the various monetary policy in
Australia. It is also known to affect the official rate of interest of the nations. The cash rate is
therefore known to affect the rate of interest in the economy. The main objectives of the
monetary policy of Australia for stabilizing the currency of Australia. For maintain the full
employment, the economic prosperity of Australia is maintained. On the other hand, the
monetary policy of the United States includes the actions of the Federal Reserves and the
communications which is known to help for promotion of the maximum employment,
stability in the prices along with long term interest rates. These are the major goals of the
economy which have been instructed by the congress of the Federal Reserves. The federal
Reserves is also known to conduct the various types of the monytary polices where the
monetary policy will be affecting the rate of interest indirectly. The macroeconomic
indicators of the economy comprises of the real gross domestic product, money supply,
consumer price index and the statistics of the current performance.
Macroeconomy of Australia
The economy of Australia is mostly a mixed market economy where the gross
domestic product in the year 2017 was around A$1.69 trillion. Australia have also known to
overtook Switzerland and became one of the largest countries in the world. The economy of
Australia is mostly dominated by the service sector industries. The mining in Australia has
known to contribute a huge level of economic growth. The economy of Australia is mostly
dependent upon the spending of households. When the data of the growth of the real gross
domestic product and the rate of unemployment have been shown in the graph. The exchange
rate had been around one percent. The growth of the real gross domestic product also was
known to be around two to three percent. The cash rate Australia had been highest in the year
1995 and kept on declining to two percent. The rate of interest had been quite high in the year
1995, however it declined after that.

23
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Conclusion
The benefit that exporters gain from the inflation have known to become cheaper for
the consumers in case of other economies. Tightening of the supply of money will be
discouraging the expansion of the business and the spending by the consumer which will be
negatively impacting the exporters which will be reducing the aggregate demand. The
economy of Australia is mostly dependent upon the spending of households. When the data
of the growth of the real gross domestic product and the rate of unemployment have been
shown in the graph. The exchange rate of Australia had been most of the time had been less
than one percent. It was more than one percent for the year 2010, 2011 and in the year 2012.
The exchange rate had been around one percent. The adjustment of the monetary policy will
be reflecting the inflation source. The inflation will be above the targeted rate of inflation,
when the contractionary policy will be suitable in nature.

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