Ask a question from expert

Ask now

Impact of Changes in United States GDP

12 Pages3264 Words54 Views
   

Added on  2020-02-19

Impact of Changes in United States GDP

   Added on 2020-02-19

BookmarkShareRelated Documents
Name:
Student Number:
Resident Campus:
Assessment Title:
Lecturer Name:
Submitted On:
Sources:
Impact of Changes in United States GDP_1
Contents
Executive Summary................................................................................................... 2
Introduction................................................................................................................ 2
Critical Analysis.......................................................................................................... 2
Exports....................................................................................................................... 4
Fed Rate..................................................................................................................... 5
Monetary Policy of Australia....................................................................................... 6
Monetary Policy of United States of America..............................................................8
Fiscal Policy of United States & Australia...................................................................8
Conclusion.................................................................................................................. 9
Bibliography............................................................................................................. 10
Impact of Changes in United States GDP_2
Executive Summary
This assignment is about the impact of the changes in United States GDP on the economy of
Australia. United States of America is considered to be inventor of the global gross domestic
product. It is ranked the number one in terms of real growth GDP and almost every other smaller
or bigger nation of the world is affected by even a little change in the GDP of the United States
of America.
Introduction
In recent times Australia has made an enormous growth in terms GDP. GDP stands for gross
domestic product. It is an economic barometer that is used to measure the economic success of a
country. Currently Australia is on 13th rank and is contributing 1.74% of the total world’s
economy. United States, China, Japan, U.K and India are the top contributors of the total world
economy (machille 2015). In this assignment we are going to study about the economy and
recession trends of USA and Australia. Both these countries shares international trade with each
other. USA has a bigger economy compared to that of Australia; however the recession rate of
USA is much higher than that of Australia. The gross domestic product of Australia for the year
2017 is 1359.723 billion dollars, where as for USA it is 19417.144 billion dollars. In this
assignment we are going to discuss about the affects of the Global Economic System (United
States of America) on the other well developed economies of the world.
Critical Analysis
Australia has made a remarkable growth in terms of everything; the number of immigrants going
to Australia in search of work is also growing day by day. The economy of Australia is giving a
tough competition to the existing international players. Most of the economists are of the view
that the economy of Australia is linked with the economy of USA, Because Australia trades with
the States, financial market commentators has even said that any changes in the USA economy
will result in the recession or expansion of the Australian economy, which we believe is not a
true statement. It can’t be ignored that USA is the world’s largest economy currently but if it
made any changes into its economy, then the Australian economy will remain unaffected. To
Impact of Changes in United States GDP_3
prove this we are going to provide various facts and cases. The economy of USA is much higher
than that of Australia but it does not have anything to do with it, in terms of recession or
expansion. In the year 2016 the GDP- real growth rate of USA was 1.6%, as compared to 2.9%
that of Australia (Adam 2014). The unemployment rate in the year 2016 for USA was 4.7%
and 5.8% for Australia. Australia is a developed country that has earned everything on its own.
There is no doubt that its economy is related to many other big countries but any change in their
economy will hardly affect the Australian economy. Below is a table that shows the GDP real
growth rate of USA & Australia from the year 1985-2015 (Weber 2012).
YEAR
GDP growth rate %
AUSTRALIA
GDP growth rate %
UNITED STATES
1985
5.5 3.3
1990
1.5 0.8
1995
2.9 1.5
2000
3.2 2.9
2005
3.2 2.4
2010
2.3 1.7
Impact of Changes in United States GDP_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Economy of US and China: Strengths and Weaknesses
|6
|1141
|74

Sample Assignment on Economics USA
|12
|3886
|36

Macroeconomic Environment of Australia
|15
|3489
|45

Macroeconomic Performance of Australia and USA
|20
|4878
|83

Policy Response to the Pandemic and Its Challenges: A Comparative Analysis of Australia and USA
|11
|3658
|455

Evaluation of Macroeconomic performance of Australia and USA
|18
|3445
|251