The paper "Australian Unemployment Trend" is a perfect example of a micro and macroeconomic case study. Macroeconomic policy plays an important role in every country which influences many factors such as inflation, unemployment, the growth rate of the economy, economic stability etc. The government of all countries on a continuous basis focuses on these issues to increase the overall performance of the economy. However, two major issues that are always a sign of concern for any country in today’ s world are rising inflation rates and increasing unemployment in the country and Australia is no exception to the same. Herein the assignment is divided into three major categories or sections.
The first section highlights the Australian Economy in the last 10-15 years along with some of the major challenges that the policymakers face in building the macroeconomic policy, the second section throws light on the instruments and goals that are applicable to Australian policy and lastly a complete discussion of the macroeconomic policy by use of various economic theories which had already been discussed in the class The macroeconomic policy aims at maintaining four major objectives which are inflation rate, employment generation, economic growth and maintenance of external balance.
Australia has experienced the same mostly a changing trend in three aspects inflation, unemployment and economic growth which has been discussed as under. Australian Inflation Trend Inflation is an increase in the level of price in the economy over a period of time due to lower purchasing power. There can be three major reasons for the cause of inflation which are cost-push inflation, demand-pull inflation and monetary inflation. Consumer Price Index is the most commonly used tool to measure inflation in an economy. The graph shown below shows the trend of CPI of the Australian economy from the year 1993 to 2009.
The graph is studied as CPI at the year-end and the bar chart shows the level of CPI on a Quarterly basis. We see that the inflation trend was stable during the 1990s and started to show a decreasing trend towards 2000 which was a good sign for the economy.
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