The paper "Macroeconomic Policy - Inflation, Unemployment, and Growth" is an amazing example of a Macro & Microeconomics essay. Over the past decade, the Australian economy has experienced significant changes in its economy. They have moved from a dependent economy to a more independent one. Currently, overreliance on its independency has obscured the overall continuity and this characterizes the Australian economy as a whole in the European nations. Australia is considered primarily an exporter of its domestic produce and heavy borrower of commodities it is not producing in its territory. The country’ s economy has always been fostered by the support of the external elements.
Before globalization hit the economy, Australia primarily depended on the developed countries; like today’ s developing countries overreliance on developed countries to boost their economies. This dependency enhanced its prone to the economic crisis as there was a periodic inability for the country to earn surpluses in its export to offset the capital inflows. Such external forces experienced by the economy had an upper hand in shaping the whole economy of Australia. In most of the twentieth century, Australians have been living in an economy characterized by high-income earners embodied by service sectors, a protectionism system that is well entrenched, and atypical domestic forces. Current Australian economy The economy, over the past decade, has demonstrated a high marginal propensity to consume, a strong preference for leisure and citizens prefer suburban and owner-occupation in regard to being involved in the leasing of the premises. The country’ s Gross Domestic Product (GDP) has nourished over the past year despite the significant inconsistency as indicated below; Figure 1: Australian GDP The information above illustrates that the country has entered into a lengthened growth in its GDP.
The downward fall of GDP in the year 2008 was facilitated by the global economic crisis that was experienced worldwide. This trend could even surpass that of the 1950s golden age when Australia economy “ rode on the sheep’ s back” in agriculture, specifically, wool, which was imminent for Australia’ s Marginal Propensity to Save (MPS) and Marginal Propensity to Consume (MPC) (Anh T. Le, 2000). The achievement in its GDP improvement for the past 10 years was due to the dismantling of the many adverse tariffs that had an impact on the Australian industries as they were not able to engage in foreign competition, deregulation of the country’ s financial system which enhanced privatization of major incentives like communications, transport, and utilities.
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