Evaluation Of Macroeconomic Performance of Australia
13 Pages3244 Words47 Views
Added on 2021-06-17
Evaluation Of Macroeconomic Performance of Australia
Added on 2021-06-17
ShareRelated Documents
Running Head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the StudentName of the UniversityCourse ID
ECONOMICS ASSIGNMENT1Executive Summary The paper critically evaluates macroeconomic performance of Australia over the period of 1990-2016. Performances are analyzed in dimensions like output, price level, labor market, tradebalance, exchange rate and interest. In modeling economic performance focus has also given onfinding relations among the variable concerned. The comparison of GDP growth andunemployment shows a convergence in trend movement between GDP growth andunemployment. The relative movement of inflation and GDP though does not indicate any clearassociation the economy has successfully attained a stable growth rate along with a pricestability. A surplus or deficit in trade account depends on the magnitude of exchange rate. Rise inexchange rate or depreciation lowers trade balance and appreciation decreases trade balance. Amonetary expansion has observed on part of both Australian and USA governments reflectedfrom steady fall in bank rates in both nations. Australia is expected to overcome the ongoingperiod of slow economic growth depending on remedial measures and diversification ofeconomic activity.
ECONOMICS ASSIGNMENT2Table of ContentsIntroduction......................................................................................................................................3Gross Domestic Product, inflation and unemployment...................................................................3Relation between unemployment rate and GDP growth rate......................................................4Growth and inflation relation.......................................................................................................5Business Cycle.................................................................................................................................6Net export and AUD/USA exchange rate........................................................................................6Fed fund rate and RBA cash rate.....................................................................................................8Outlook for Australia economy.....................................................................................................10Conclusion.....................................................................................................................................10References......................................................................................................................................11
ECONOMICS ASSIGNMENT3Introduction Australia is a small diversified economy having a structure of mixed market economy.Agriculture, industry and services are the three main sectors of the economy. The economythough mostly relies on its industrial and service sector but agriculture also has an importantplace in the economy. The economy well-recognized the importance of mining industry. Miningis considered as the main engine of economic growth. In the last few years however mininginvestment has declined with a shift in growth focus to the service sector. In the GDPcomposition, the highest contributor is service followed by industry and agriculture (Manalo,Perera and Rees, 2015). An expansion of the economy marked by expansion of and output leadsto an increase in employment and price level. Trade is an important part of the economy. Tradeshares are affected by exchange rate between Australia and its trading partners especially UnitedState. The direction of monetary policy is determined from the position of cash rate. Gross Domestic Product, inflation and unemployment One vital aspect of macroeconomic performance of a nation is gross domestic product of nation. It offers a quantitative measures of total produced output of a world. In the estimation of GDP, market prices are used to quantity the marketed goods and services. GDP obtained using market price of current year is called GDP at current price or nominal GDP. Another measure of GDP is the use of base year market price teemed as GDP at constant price real GDP (Frank, 2018). In order to measure how fast tan economy is growing standard approach is to use market percentage change in real GDP from one year to another. Economic growth in terms of its influence on employment generation and income affects unemployment rate and inflation rate (Fontana and Setterfield, 2016). The table below shows the summary statics of real GDP growth,unemployment and inflation for Australia over the dynamic range of 1990 to 2015/16.Table 1: Summary Statistics of real GDP growth, inflation and unemploymentSummary Statistics Real GDP growth rate InflationUnemployment Mean3.10Mean2.68Mean6.73StandardError0.23StandardError0.28StandardError0.36Median3.53Median2.49Median6.10Mode#N/AMode#N/AMode6.90StandardDeviation1.21StandardDeviation1.46StandardDeviation1.89SampleVariance1.46SampleVariance2.14SampleVariance3.58Kurtosis1.74Kurtosis2.47Kurtosis-0.18Skewness-1.21Skewness1.15Skewness0.88Range5.38Range7.02Range6.70Minimum-0.38Minimum0.25Minimum4.20Maximum5.01Maximum7.27Maximum10.90Sum83.62Sum72.33Sum181.60Count27Count27Count27
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Macroeconomic Performance of Australia from 1990 to 2016lg...
|13
|3611
|62
Economics Development - Solved Assignmentlg...
|14
|3546
|38
Macroeconomic Analysis of Australia: Real GDP Growth, Inflation, Unemployment, Net Export and Real Exchange Ratelg...
|14
|3472
|388
Macroeconomics Performance of Australialg...
|14
|4190
|34
Macroeconomic Performance of Australia and USAlg...
|20
|4878
|83
Macroeconomic Environment of Australialg...
|15
|3489
|45