The paper "A Description and Comparison of the Australian and New Zealand Economies" is a perfect example of a micro and macroeconomic case study. This report provides a description and comparison of the Australian and New Zealand economies. The report commences by noting that New Zealand is approximately a tenth of the size of Australia. Basing its description on the two countries’ national output and expenditure, wages and employment, and the external sector, the report notes that Australia has in the past performed relatively well in the macroeconomic front compared to New Zealand.
In recent times, however, New Zealand’ s macroeconomic performance seems to have improved considerably. Specifically, New Zealand’ s terms of trade are on an increase while Australia’ s have been on a downward trend. Moreover, New Zealand’ s unemployment rates are on a decline and almost at par with Australia’ s. The latter’ s unemployment rate has been on a rise in the recent past. In 2013 and 2014, New Zealand’ s GDP growth has exceeded that of Australia, therefore indicating that regardless of its small size, New Zealand’ s economy is on a growth trajectory while Australia has stagnated.
The only major issue that seems to be dragging New Zealand’ s economy behind is the cost of labour, which when compared to Australia’ s, is relatively high. The high cost of labour is arguably occasioned by a shortage of skills, which makes the available skills expensive. The report’ s conclusion reiterates the comparisons between the two economies and recommends that policy actions by each country will largely depend on macroeconomic areas that may generate the most desired outcomes. Introduction As geographical neighbours, New Zealand and Australia have a lot in common socially and geographically.
Economically, however, the two countries are quite different. The New Zealand economy is estimated to be a tenth of the size of the Australian economy (Jericho 2014, para. 6). Additionally, New Zealand relies more on agriculture, while Australia relies on a combination of economic activities, key among them being mining. Notably, Australia is a vast country, which for administrative purposes, has a federal system.
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