Macroeconomic Equilibrium

Added on - 04 Oct 2020

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MACROECONOMICS
TABLE OF CONTENTSQuestion 1b Determining the influences to the unemployment rate in Australia in context withfull-time and part-time positions.................................................................................................1Question 2 Discussing the equilibrium process of moving a new macroeconomic equilibriumoutput by implicating aggregate expenditures (AE)....................................................................2Question 3 Implicating the use of AD-AS model to analyse the interest rates predicted by themarket economists.......................................................................................................................3Question 4 Applying the dynamic AD-AS model for analysing the circumstances for RBA inraising the interest rates in next 12 months.................................................................................5REFERENCES................................................................................................................................7
Question 1b Determining the influences to the unemployment rate in Australia in context withfull-time and part-time positions.Currently, after world war 2ndthe impacts of unemployment rate have been controlled inAustralia for only 1-2%. It does not have the appropriate control over the economic growth anddevelopment. Thus, such variations have affected the per capita income of citizens. The rise inpopulation as well as increasing number of employees have reduced the number of jobs stated inevery field. Along with this, the impacts of full time participants on the job have negativeimpacts in raising the unemployment rate in economy.The impacts on growth of unemployment rate which insist that there are large number offull time participators in the economy that of part time. Thus, 4 out of 5 individual which areengaged in full time employment (Jobs boom puts RBA under pressure to raise interest rates,2018). Thus, with impacts o this it has reduced the employment rates in Australia. It has recentlybeen analysed here that, work and employment rates in nation helps in raising the per capitaincome as well as better economic growth. If the number of employees is higher than the numberof jobs is stated in environment than there will be negative impacts seen on the economicgrowth.There will be near half a million individuals will be unemployment if the number of fulltime employees increased. They are people which will leave the labour force with several causessuch as raising children, retirement, health, going back to education and various alternativereasons for shifting them for becoming labour force(Clemens and Heinemann, 2018). However,it can reversely be being affected as there will be shift from unemployment to employmentwhich can be due to going back to work, leaving school or college etc. there will be impacts ofsuch changes in the labour force work which will have impacts on determining the deliverypolicies and number of jobs in labour force will; raise in the upcoming period.Recently, the unemployment rate in Australia has been fell at 5.6% as there are 21000losses from the full-time employment. Along with this, there have been increment in the part-time employment which is of around 32600. Similarly, it affects a decline in the labour hourwhich have ben reduced for 1.4% or it can be said around 24.2 million hours. However, it hasbeen estimated and predicted by various economists that Australia have slow employmentgrowth (Unemployment drops to 5.4 per cent despite the loss of 21,000 full-time time jobs inMay, 2018). The level of operations as well as labour force required for the work will have1
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