Australia's Macroeconomics Objectives

Economics are the study of a particular issue for people to manage the financial system. Australian economy is playing big roles in terms of global economy. This leads to many economists to pay attention to Australia’s performance. The Economist are using macroeconomics objectives to analyse the economy with focusses on large scale such as national economy. This essay will focus on two macroeconomics objectives, how they are measured, and how they relate to each other. Furthermore, it will also discuss about Australia’s performance in the past three years (2013-2015) and prediction of Australia’s performance in terms of these objectives in 2016.

First of all, one of the macroeconomics objectives is economic growth. Economic growth is one of …show more content…
Both of them are considered to be an important role to assesses how well a country’s performance. One of the relation is the growth in GDP leads to the rise of average prices in the market. When the rise of average prices increase, CPI increase, and inflation may also increase. As it is measured by the annual growth in the cost of living. This cost of living is regarded as representing the inflation rate (The increase in inflation, may increase the demand of customer). It causes production to go down, because it can not balance between customer’s demands and their internal output, such as wages of raw material. As production decline, the economic growth is also decreasing. These shows how economic growth and low inflation rate are related each other. * prove more about how they relate …show more content…
The indicators used to monitor the performance in this essay are the rate of low inflation rate by CPI and the rate of economic growth by GDP. Moreover, according to Australia’s performance in these three years the economy has been relatively decrease as it is shown in the figure