Report on Concepts of Macroeconomic in Australia

Introduction to
Macroeconomics

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Measuring GDP and Economic growth:.....................................................................................1
QUESTION 2...................................................................................................................................3
Jobs and Inflation........................................................................................................................3
Quantities Expansion of money in EU........................................................................................6
QUESTION 3...................................................................................................................................6
Global saving and US current account........................................................................................6
Exchange rate .............................................................................................................................7
Balance of payment.....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
How the economy as whole is performing in international market what is its structure and
decision making process on national and international level is known as macroeconomic. This
will be helping to study economy as on aggregate bases and including phenomenon like that of
inflation, unemployment, growth rates, national income, GDP and poverty. The present report
will be including all these phenomena which are the very basic concepts of macroeconomic like
what is ranking of Australia in HDI indicating and what are the reason behind unemployment.
QUESTION 1
Measuring GDP and Economic growth:
(a) Calculating GDP using expenditure.
GDP = C+I+G+NX
where C is consumption
I is investment
G is government expenditure
NX is net export which is import less exports.
2000+800+400+(-200)
so GDP using expenditure approach will be $3000
(b) Calculating sum of total income less wages and statistical discrepancy.
Statistical discrepancy is gross domestic product minus gross domestic income less the
wages.
GNI = $2900
GDP = $3000
Wages = $2000
Statistical discrepancy = GDP- (GNI- Wages)
3000- (2900-2000)
so statistical discrepancy will be $2100
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