The paper "The Economy of Australia and the Federal Government Management of the Economy" is a perfect example of a macro & microeconomics case study. This paper is exploring the current state of the economy of Australia and the federal government management of the economy. The Australian economy has been examined using four economic indicators that can include economic growth, unemployment, inflation, and trade. Besides, the economic policies that have to be adopted by the federal government in the process ensuring economic sustainability are explored. These policies that have been discussed can include monetary and fiscal policies.
Lastly, recommendations have been provided concerning the policies for the federal government to ensure economic sustainability. Introduction The economy of Australia has grown by around 0.5% due to a decrease in net trade and flat investment in the country. The economy of Australia is dominated by the service sector where the major success of the Australian economy can be attributed to the mineral resources and the developed agricultural sector. The service sector in Australia accounts for around 65%, mining 13.5%, manufacturing accounting for around 11%, agriculture around 2% and construction around 9.5% (Adams, 559).
Based on these statistics, it is clear that the service industry has been reasonable for the growth in the economy of Australia. The growth of the economic growth of Australia can be associated with the management policies formulated by the federal government. The economic indicators Economic growth Australia has been experiencing economic growth due to the quality of monetary and fiscal policies that have been adopted by the federal government in ensuring its economic stability. In ten years’ time before the recession that started from 1999 to 2008, the Gross Domestic Profit (GDP) of Australia accelerated with an average of 3.4% per year (Dunt, Emily and Ian, 330).
In the year 2009, economic growth declined to 1.6% as a result of financial challenges globally. Though 2009 was the Australian’ s worst year regarding economy since it was recessed in the year 1991, there was great resilience economically to the global crisis. Australia is among the few countries that recorded a positive development in 2009. The economy of Australia has improved its performance with an average of 2.7% in GDP growth from 2010 to 2013.
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