Comparative Analysis of Economic Indicators in Australia, China, and USA: GDP, Unemployment, Inflation

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
Course ID

1ECONOMICS
Table of Contents
Introduction...........................................................................................................................................2
Evaluation of GDP growth, unemployment and inflation......................................................................2
Australia............................................................................................................................................2
USA....................................................................................................................................................4
China..................................................................................................................................................5
Business Cycle phases............................................................................................................................7
Australia............................................................................................................................................7
USA....................................................................................................................................................8
China..................................................................................................................................................8
Aggregate demand and aggregate supply model..................................................................................8
Macroeconomic issues in the selected countries................................................................................10
Effect of global financial crisis..............................................................................................................10
Australia..........................................................................................................................................11
China................................................................................................................................................11
USA..................................................................................................................................................11
Macroeconomic briefing of Australia, China and USA.........................................................................12
References list.....................................................................................................................................13

2ECONOMICS
Introduction
Australia, an economy having a mixed market economic structure is fourteenth largest
economy when considered with respect to nominal GDP. The largest dominating sector of Australian
economy is service sector with service sector contributing 61.1 percent of GDP. After service sector,
two following important sectors are manufacturing and primary sector. China account second largest
nominal GDP in world. In the last few decades, China recorded a rapid economic growth. The most
productive sector of China is manufacturing (Bloch, Rafiq & Salim, 2015). USA records the largest
nominal GDP and second highest per capita GDP (PPP adjusted). The report compares economic
condition of Australia, China and USA in relation to phases of business cycle and major
macroeconomic issues.
Evaluation of GDP growth, unemployment and inflation
Business cycle or economic cycle or trade cycle is characterized in terms of gradual upswing
or downswing of economic activity captured in term of long term growth trend in Gross Domestic
Product. A complete business cycle consists of periods of economic expansion as well as economic
trough (Heijdra, 2017). Different phases of business cycle can be explained in terms of trend in the
growth of real GDP.
Australia
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
GDP growth in Australia
Figure1: GDP growth in Australia
(Source: Data.worldbank.org, 2018)

3ECONOMICS
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0
2
4
6
8
10
12
Unemployment in Australia
Figure 2: Unemployment rate in Australia
(Source: Data.worldbank.org, 2018)
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Inflation rate in Australia
Figure 3: Inflation rate in Australia
(Source: Data.worldbank.org, 2018)
The accounted growth in real GDP of Australia was -0.39 percent in 1991. Due to
recessionary pressure during this time Australian economy grew at a negative rate. This was the
slowest pace of growth in Australia ever. The slowest pace of expansion was associated with a high
rate of unemployment and an associated high inflation. However, given economic resilience and fast
expansion of mining and other industries economic growth recovered and Australian again
experienced the phase of business cycle expansion. Steady expansion resulted in the highest growth