Continuity And Cambridge University Press -Myassignmenthelp.Com

Question: Discuss About The Continuity And Cambridge University Press? Answer: Introducation The primary indicator of the economic performance of any country business-law Gross Domestic Product of the country, which in turn is dependent on several other economic variables and their dynamics. Keeping this into consideration, the assignment tries to analyze the macroeconomic performance of one of the most stable and developed economies in the global framework, the economy of Australia (Dyster and Meredith, 2012. For assessing the same, the Real GDP (Inflation adjusted GDP) of the country is taken for the time period 1990-2015, and its relationship with the indicators like unemployment, inflation, net exports, cash rate and exchange rate of the country is analyzed. The following table shows the correlation between the Real GDP and the above-mentioned indicators of Australia, within the period of consideration: Relationship between Real GDP and different economic variables Correlation between Real GDP and different economic variables Real GDP growth rate Cash Rate Unemployment rate Rate of inflation Exchange rate Net exports Growth Rate of Real GDP 1 Cash Rate -0.08 1 Rate of Unemployment -0.13 0.28 1 Rate of inflation -0.03 0.64 -0.23 1 Exchange rate 0.20 0.04 0.26 0.08 1 Net exports 0.23 0.26 0.55 -0.02 0.85 1 Real GDP growth rate and Rate of Unemployment The correlation between the unemployment rate and the Real GDP, as can be seen from the above table is -0.13, which indicates towards a negative relationship. A roughly inverse relationship can be observed between the concerned two variables, with the rate of unemployment decreasing until 2008, then slightly increasing, and the Real GDP maintaining a stable growth rate. Cash rate and Real GDP The cash rate is the interest rate which the Reserve Bank of Australia charges from the other banks in lieu of money lent to them (Dyster and Meredith, 2012). The same, being maintained at a moderately low rate (2.13% in 2015) in the recent periods is seen to have inverse relation with the Real GDP with the correlation coefficient being -0.08. The continuous decrease in the cash rate is accompanies by a stable rate of growth of Real GDP in the country, as low cash rate stimulates economic activities in the country. Real GDP and inflation The correlation between the two is found to be -0.03, which portrays a unique negative relationship. This variation from the theoretical assertion of a positive relation can be attributed to the high debt burden in the country in the recent periods. Real GDP and net exports Australia, though maintained a positive trade balance for a prolonged period, however, in the recent periods there have been several situations of trade deficits: Though the correlation (0.23) shows a direct relationship between the two concerned variables, in the recent periods trade deficits are occurring mainly due to the increase in the demand of consumption goods and raw materials which are imported (Kumar, Webber and Perry, 2012). Exchange rate and Real GDP The correlation between the two variables for Australia is found to be 0.2, which is augmented by the above figure which shows that the over the years the exchange rate is kept between USD 1 and 2, thereby keeping the growth rate of the Real GDP stable (Kumar, Webber and Perry, 2012). References Data.worldbank.org (2018).Australia | Data. [online] Data.worldbank.org. Available at: https://data.worldbank.org/country/australia [Accessed 27 Jan. 2018]. Data.worldbank.org (2018). management, total (% of total labor force) (modeled ILO estimate) | Data. [online] Data.worldbank.org. Available at: https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=AU [Accessed 27 Jan. 2018]. Dyster, B. and Meredith, D., 2012.Australia in the global economy: Continuity and change. Cambridge University Press. Kumar, S., Webber, D.J. and Perry, G., 2012. Real wages, inflation and labour productivity in Australia.Applied Economics,44(23), pp.2945-2954. Rba.gov.au (2018).Cash Rate | RBA. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/statistics/cash-rate/ [Accessed 27 Jan. 2018]. Rba.gov.au (2018).Historical Data | RBA. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/statistics/historical-data.html [Accessed 27 Jan. 2018].