This website uses cookies to ensure you have the best experience. Learn more

Economic Growth And Business Fluctuations In Australia

651 words - 3 pages

This report aims to analyse Australian Real GDP from 1975. The most commonly used indicator of economic growth is the annual rise in real gross domestic product (GDP). The GDP is an estimate of the total value of goods and services produced in a year. Real GDP is calculated by using constant dollar term which corrects for inflation.The Australian Real GDP figures are provided to the public at the Reserve Bank of Australia (RBA) website. Microsoft Excel was used to generate the 2 graphs on page 4.Figure 1 shows natural logarithm of real GDP plotted against time. Logarithmic scale is used so that the same proportional increase in real GDP is represented by the same distance on the vertical axis. The trend line (regression line) is the line of best fit. The equation of the trend line is y = 0.0027x + 8.7551, suggesting that real GDP average annual growth is 3.24%.Figure 2 illustrates Australian output gap and annual growth rate from 1975. The output gap measures the extent of demand-pull inflationary pressure in the economy at a particular time. A positive output gap results when actual GDP is greater than potential GDP i.e. when real GDP is above the trend line. This implies that there would be increasing inflationary pressure and it often happens at the end of a period of sustained economic growth.The Australian economy experienced a stable growth period from 1975 to Dec 1981. During that time growth rate and had always been positive with output gap went into negative only in the Mar 1978 quarter. Since then there is 2 recessions in Australia.The first recession occurred in the early 1980s resulting from oil shock and inflation in the US (wikipedia). Real GDP, output gap and growth rate plunged since Sep 1981 and bottomed at AU$97947m, -6.82% and -3.35% in Jun 1983 respectively. Following this recession was the period of recovery and growth. Signs of recovery came from the improvements in...

Find Another Essay On Economic Growth and Business Fluctuations in Australia

Economic Exchange and Economic Growth Essay

1552 words - 7 pages Economic exchange is an important tool to enhance economic growth. However, contrary to the expectation, intensified economic exchange in America, as a result of free trade has negatively impacted on wage rates. Consequently, as free trade extends to non- American economies, converting the whole world to a global village, the impact on wages spreads out to other nation and with the current trend it will soon flatten wages across the globe at a

FDI and economic growth Essay

3860 words - 15 pages .lower middle , upper middle, and high income countries identified by the World Bank definition. The data are annual and cover the period 1960 to 2010 ., a period of 50 years to study the relationship between foreign direct investment and economic growth. To improve the quality of the estimation, we employ a dataset with a long enough period of time to control for business-cycle fluctuations and short run effects of political and financial shocks

Economic Growth and Consumption

1785 words - 7 pages , liberalisation, universalisation, modernisation and deterritorialisation”(Niski M 2012). The act of consumption in economic terms is a process of a consumer spending money on goods and services, consumerism is a social and economic belief that encourages and enforces the consumption of goods and services in great amounts. In a capitalist society such as Australia which is based on economic growth, a consumerist society could be deemed to

Economic Growth and Development

820 words - 3 pages which promote human dignity and respect. 3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables.’ Economic growth may be defined as an increase in a country's ability to produce goods and services. Economic growth merely refers to an increase in the real Gross Domestic Product, or GDP per capita over a period of time. It is natural to be misled by the idea that economic growth is the key to

Economic Growth and Development

1354 words - 5 pages 1)Distinguish between economic growth and economic development.Economic growth is a measure of a county’s productivity and the total combined income of that country. Economic development is a measure of how developed a country is i.e. people’s standard of living. For economic development to occur, economic growth also is needed but economic development is not needed for economic growth to occur.BasisEconomic DevelomentEconomic

The economic effects (positive and negataive) of immigration in Australia

1672 words - 7 pages , Australia's economy may be as little as one half the size it is today (Source: Year Book Australia, 2003). This growth can be attributed to an increased workforce, larger tax paying group and larger and more diverse industries. A substantial increase in GDP is one of the many advantages that immigration provides the Australian economy.Although it is argued that "an increase in migrants in the workforce displaces many Australians from occupying

Environment and economic growth go hand in hand in Denmark

538 words - 2 pages into export successes, and atthe same time help improve the globalenvironment.Contact: stefan.nystrom@environ.seNo. 6 December 2000 EnviroReport 5Environment and economic growth go hand in handIn Denmark, a project known asthe Green Job Pool has producedboth environmental benefits andtemporary work for the unem-ployed. State funding has beenprovided for tangible environ-mental initiatives in such areasas urban ecology, transport,reuse, and

Education and Economic Growth in Trinidad and Tobago

2205 words - 9 pages . Additionally an economy can be defined according to the Oxford Advanced Learner’s Online Dictionary, as “the relationship between production, trade and the supply of money in a particular country or region.” This essay will be taking a look at formal education and how formal education should be designed to meet the needs of the economy and also how it can promote economic growth. This essay will be using the country of Trinidad and Tobago as the

he role of economic geography in economic development and the impact of ICT on economic growth

2233 words - 9 pages countries are armed with good communications. On the contrary, some writers believe that geography still matters a great deal for economic interaction and for the spatial distribution of income.To discuss, I will concentrate on the role of economic geography in economic development and the impact of ICT on economic growth. From the existing inequality of economic development, we can see distance still matters in terms of economic transactions and

Oil Prices and Economic Growth

1194 words - 5 pages exchange rates are generally regarded as the factors of discouraging economic growth. Particularly, the very recent highs, recorded in the world oil market bring apprehension about possible slump in the economic growth in both developed and developing countries. A large number of researchers proposed that exchange rate volatility and oil price fluctuations have considerable consequences on real economic activities. The impact of oil price

Oil Prices and Economic Growth

1194 words - 5 pages exchange rates are generally regarded as the factors of discouraging economic growth. Particularly, the very recent highs, recorded in the world oil market bring apprehension about possible slump in the economic growth in both developed and developing countries. A large number of researchers proposed that exchange rate volatility and oil price fluctuations have considerable consequences on real economic activities. The impact of oil price

Similar Essays

Fiscal And Monetary Policy And Economic Fluctuations

990 words - 4 pages process has been characterized by changes and economic fluctuations in various aspects including interest rates, unemployment rate, and inflation within the past five years. Current Economic Situation in the U.S.: As compared to five years ago, the U.S. economy has been resilient as it continues to recover from the effects of the economic downturn and ruins to an improved health. Currently, the country’s economy is weathering federal budget

Urban Growth And Decline In Sydney, Australia

1112 words - 4 pages Australia is an extremely urbanised country; about 85 per cent of the population lives in coastal areas, and most of these people live in urban areas with populations of over 100 000 people. This accounts for only about 1 % of Australia's total landmass. This level of urban growth is putting much pressure on cities to keep up with the needs of the growing populations. Though some areas of cities are being subjected to urban growth, other areas

Economic Indicators In Australia Essay

945 words - 4 pages Recent evidence has shown that Australia will enter into technical recession in the near future, due to the myriad of global economies also experiencing negative growth. The effect of Australia’s strong economic ties to such countries was noted by Prime Minister Kevin Rudd, who conceded on April 20, 2009, that “it is inevitable that Australia will be dragged into recession.” Providing credence to such predictions are indicators in

Economic Growth And Economic Indicators Essay

852 words - 4 pages Economic growth is measured by the change in real GDP. Real GDP is the total value of all of the goods and services produced in a year, adjusted for inflation. GDP, though not the best indicator of the quality of life, nations with a high GDP correlate to nations with a higher quality of life. The changes in real GDP for 2013 general trend of increasing GDP and hence increasing economic growth. The latest estimate for fourth quarter fiscal year