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ECON 1010 – Macroeconomics 1Student nameStudent numberTutorial Date/TimeSignature (take a picture of a signature and paste here)Nguyen Pham Hoang Dat (*)S3697380Tuesday5:30 PmPavondev SinghS3800118Tuesday5:30 PmPart A: Diagnostics AnalysisName of country:Australia
Indicator 1 from Group B: Output measured as GDP. Presentation Figure 1: Demonstration of Australia’s GDP between 2014 and 2018.Comments and observationsFigure 1 shows, the Gross Domestic Product (GDP) in Australia has faced contraction phase in 2014 and 2015 which shows a decrease in GDP after reaching its peak in 2014.Australis’s GDP continuously decreased and reached its lowest point in 2016. The GDP index has clearly decreased by 23.23% since 2014. After 2016, Australia’s GDP was in expansion phases which grow up to 18.36% in the following years. There was a strong fluctuation in the scale between 2015 and 2017. Overall, the Australia’s GDP has improved after its through phase in 2016 but still lower 9.1% when comparing the proportion in 2013.Indicator 2 from Group B: Unemployment rate. Presentation
Figure 2: The display of the unemployment rate in Australia between 2014 and 2019.Comments and observationsObserving the figure above, there was a fluctuation on unemployment rate through the years 2014 to 2019. In 2014 the unemployment rate was 5.9% and it continuously increased to the highest point of 6.4% in 2015.This type of unemployment falls in cyclical unemployment as it can be seen in Figure 1 in the years 2014 to 2015, Australia GDP was going through contraction phase. After that, the unemployment rate has declined in the following years from 6.4% to approximately 4.9% which can be called the natural rate of unemployment. The slight fluctuationfrom 2018 onwards, from 4.8% to 5%.Part B: Policy Brief
Briefing for the Prime Minister, Hournable Scott Morrison, Minister of Finance, Senator Mathias Cormann, and Minister for Trade, Tourism and Investment, Senator Simon Birmingham.Subject:Use of Economic policies to ameliorate GDP and sustain low unemployment rateExecutive summary From data researched carried out its shown that in the years 2014 to 2018, Australia’s economy fluctuations and is correctly growing with reductions in unemployment achieving natural rate of unemployment which is 5%. There several recommendations provided for the government to maintain low unemployment rates and stimulate Australians GDP. These recommendations are implantation of Expansionary Monetary Policy, Expansionary Fiscal Policy and Government Education and Training Programs.Recommendations Monetary Policy-Expansionary carried out by Reserve Bank of Australia(RBA) through open market operations to increase money supply and reduce interest rates, thus being an economic stimulus. Expansionary Fiscal Policy which involves increase of Government Expenditure, decrease on taxes or even a combination of both elements. Providing education and training to reduce structural unemployment such as teaching of new skills in new industry.