Essays on Structural Change in the Australian Economy Statistics Project

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The paper “ Structural Change in the Australian Economy” is a convincing example of the statistics project on macro & microeconomics. Outline the experience of the Australian economy over the last 10-15 years, making use of major macroeconomic aggregates– these may be presented in summary tables and/or graphs. Stress should be placed on the challenges facing policymakers at present and likely challenges in 2012. Macroeconomics analyses the economy of a given region or state as a whole rather than analyzing individual markets. This branch deals with the structure, performance, decision-making, and behavior of the economic situations (Garnett and Hawtrey, 2010).

Some of the factors on macroeconomics include inflation, GDP, and unemployment. Macroeconomists collect and develop models that are aimed at analyzing a situation and determine the direction of the economy. The Australian economy survived the financial crisis of 2008 because of an effective approach to the problem and provided solutions that ensured the economy operated effectively. Some of the factors that drive the economy and determine the direction of the economy include inflation, employment, and gross domestic product. The following table presents a summary of inflation rates since 2003. Year March Jun Sep Dec Annual 2013 2.5         2012 1.6 1.2 2 2.2 1.7 2011 3.3 3.5 3.4 3 3.3 2010 2.9 3.1 2.9 2.8 2.9 2009 2.4 1.4 1.2 2.1 1.7 2008 4.3 4.4 5 3.7 4.4 2007 2.5 2.1 1.8 2.9 2.3 2006 2.9 4 4 3.3 3.5 2005 2.4 2.5 3.1 2.8 2.7 2004 2 2.5 2.3 2.5 2.3 2003 3.3 2.6 2.6 2.4 2.7 Source (RateInflation, 2013) Inflation is the general increase in the cost of services and goods in an economy over a given time.

When the prices of the products and services increase, the amount of money required would also increase meaning fewer goods or services can be purchased at the current value compared to before. Inflation affects the economy both negatively and positively. Negative effects include hoarding of goods and opportunity cost increase. The positive effects include encouraging investment and adjustment of real interest rates.

The aim of the Reserve Bank of Australia is to keep the inflation rates between 2% and 3%. This goal has been maintained except in 2006, 2008, and 2011. The inflation in 2008 may be attributed to the global financial crisis.

References

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Ciro, T., Mascitelli, B., and Muthaly, S. 2009. Australia and the Global Economy. Sydney: Connor Court Publishing Pty Limited

Connolly, E., and Lewis, C. (September 2010). Structural Change in the Australian Economy. Available at http://www-ho.rba.gov.au/publications/bulletin/2010/sep/pdf/bu-0910.pdf#page=3

Crotty, M., and Roberts, D. 2009. Turning points in Australian history. Queensland: UNSW Press

Garnett, A., and Hawtrey, K. 2010. The Australian Economy: Your Guide. Sydney: Pearson Education Australia

Index Mundi. 2013. Australia Unemployment Rate. Available at http://www.indexmundi.com/australia/unemployment_rate.html

McLean, I. 2012. Why Australia Prospered: The Shifting Sources of Economic Growth. Princeton: Princeton University Press

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Reserve Bank of Australia. 2013. Monetary Policy. Available at http://www.rba.gov.au/monetary-policy/

Russell-smith, J., Whitehead, P., and Cooke, P. 2009. Culture, Ecology and Economy of Fire Management in Northern Australian Savannas: Rekindling the Wurrk Tradition. Victoria: Csiro Publishing

The Market Information and Research Section. 2013. Australia: Fact Sheet. Available at http://www.dfat.gov.au/geo/fs/aust.pdf

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