The paper "Reserve Bank of Australia GPD - Measuring Total Production, Income and Economic Growth" is a perfect example of a micro and macroeconomic case study. According to the article “ Inflation hits the top of Reserve Bank target at 3pc” , inflation which currently stands at 3% has hit the Reserve Bank of Australia (RBA) top target range. The underlying measures also rose close to RBA’ s top band (Michael, 2014). The article further shows that the survey conducted by the bureau of statistics indicates that the price index was estimated at 0.6% by the end of March Quarter and 0.5% during the June Quarter. The Australian dollar rose from 0.4 for every cent to 94.3 for every US cent which was slightly above the economic expectations. As discussed in this report, several factors explain the strong and stable inflation rate of the Australian dollar.
One of such factors includes the non-declining demand for the mineral resource endowment of Australia, especially among the Asian countries. This report seeks to address this and many more economic factors that surround the Australian economy. GPD: measuring total production, income and economic growth Among the most crucial macroeconomic aspects is the measurement of production.
Gross Domestic Product (GDP) is the tool used to measure total production. It is the market value of the commodities produced within a given time period in an economy. Measuring the total production of an economy translates directly to measure the total income of the same economy. There are four major categories of GDP in terms of expenditure. These include investment, net exports, and consumption and government purchases. Total income and production can be measured using tools like Gross National Income (GNI) and Net Domestic Product (NDP).
A major challenge of GDP as an economic tool is that it does not incorporate household production, thus cannot establish the true wellbeing of the people (Mankiw & Taylor, 2014). GDP usually entails two types; nominal and real GDP (Chatterjee, 2014). In nominal GDP, the market values of commodities are measured at current year prices.
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Retrieved from http://www.abc.net.au/news/2014-07-23/consumer-price-index-inflation-abs-data-june-quarter/5617508
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