Major Project in Economics

Major Project in Economics
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Table of Contents
Introduction......................................................................................................................................3
Outline of relevant theory................................................................................................................3
Analysis...........................................................................................................................................5
Conclusions......................................................................................................................................6
Reference List..................................................................................................................................7
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Introduction
The aim of this study is to examine an article and for examining purpose the study has selected
article from ABC NEWS which is a renowned Australian Broadcasting Corporation which is
new division of American Broadcasting Company. The title of the article selected is
“Australia's economic slowdown heading to GFC levels as GDP growth continues to drop”.
This article is published in Australian Broadcasting Corporation (ABC NEWS). Stephen Letts
who is a business reporter wrote the mentioned article in the study and the news is published on
2nd June 2019 (ABC News, 2019). As the title says, Australian economy is showing slowdown
because of the drop in GDP growth rate. The article from ABC news shows that GDP growth in
Australia is very weak, the main theme of the article is negative rate recorded in different sectors
of Australia, and these are retail sales, construction work and the new business investment
private. The article has also portrayed the trade position of Australia, which displays that trillions
has disappeared from the trade bundle of the country. The phenomenon that is appropriate for the
study from the article is the GDP positioning by focusing upon the aggregate demand and
aggregate supply framework.
Outline of relevant theory
According to the article GDP, position of Australia is weakening and this phenomenon can be
understood by applying the economic concepts like AD-AS model. The article has thrown light
into the government spending of the country, which shows that public sector spending is
growing, and the sectors in which the spending was conducted are the heath sector of the
economy and the transport sector for the development of the transport infrastructure. The
positive side that the article is it displays about the Australian economy’s trade surplus that is
recorded by the country in the first quarter. Net exports have increased with a drop in imports.
According to the article, the cash rate of Australia is also weakening and this straight away
indicates the relationship between the GDP growth rate and the other parameters of the country
such as the unemployment rate, consumer price index and many more. The most relevant theory,
which is applicable in the scene portrayed by the article in ABC news, is unemployment theory
and inflationary pressures.
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