ContextYour topic will be an ongoing issue that affects the Australian economy from a Macroeconomic perspective. You are required to identify,discuss and analyse the core macroeconomic contents and...

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ECON6000 Assessment 2 Report – T2 2020
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Word count: 2,025
Table of Contents
Executive Summary:    3
Macroeconomic performance and Social impact    4
a)Performance of Australian Economy    4
Real Gross Domestic Product:    4
Labour Force Participation rate    5
Unemployment rate    6
Inflation Rate:    7
Australia’s Real GDP forecaste    8
) Macroeconomic policies of USA and Australia:    9
Australia Policy    9
Fiscal Policy    9
Monetary Policy    9
Policies of USA:    10
Fiscal Policy    10
Monetary Policy    10
Conclusion:    11
Refrences:    12
Executive Summary:
The report tries to identify the Australian economic performance before and after corona virus out
eak. It is found that the economic performance of Australia pre corona virus situation was positive and the growth rate of an economy is at increasing trend. After virus out
eak the economy suffered from high unemployment rate, deflationary situation and growth rate decreases. Policies measures announced by the Australian government is compared with the USA government policy measure in order to identify how well the Australian government tackling the situation of recession in the economy. By comparing the time taken for recovering economic growth of pre corona virus situation it is found that Australia takes much more time to recover compared to U.S. This indicates that the Australian government policies took longer time to show the effectiveness.
Macroeconomic performance and Social impact
a)Performance of Australian Economy
Overall performance of Australian Economy is examined by looking into three major macroeconomic indicators. They are Real Gross Domestic Product (GDP), Inflation rate and unemployment rate of the economy.
Real Gross Domestic Product:
Source: Australian Bureau of Statistics
Real Gross domestic product (GDP) tells us about the value of final good and services produced in Australia.
From above Gross domestic Product graph it is clear that before Corona virus out
eak Australia is experiencing positive growth rate from March 2012 to March 2019.Australia government implemented measures like lockdown and social distancing in order to control the spread of COVID 19 in the nation. These measures affected the economy badly lead to closure of business activities and slowdown economic growth rate. In March quarter 2020 Australian economy was contracted by 0.3% in seasonally adjusted chain volume terms. Based on the previous of same quarter GDP of Australia declined from 2% in March quarter 2019 to 1% in March quarter 2020.Contraction of GDP is due to lack business activities in the nation as a result of lockdown imposition.
Labour Force Participation rate
Source: Australian Bureau of Statistics
Labour force participation rate is measure used to measure working age population in the economy. Participation rate tells us about the total number of people or individual who are cu
ently in search of a job or employed.
From above Seasonally Adjusted labour force participation rate graph it is clear that Australia’s Labour force participation was increased from June 2017 to June 2020 and the rate is maintained around 65 to 66 per cent. The participation rate drastically fell down from 65 to 62 per cent after corona virus out
eak. Participation rate started to rise before June 2020 and reached around 64 per cent.
Unemployment rate
Source: Australian Bureau of Statistics
Unemployment rate tell us the percent of labor of who are jobless in the nation. High unemployment rate indicates that the nation economic condition is weak while low unemployment rate indicates the nation economic condition is strong.
Above unemployment graph was maintained between 4.5 to 5 percent which indicates the Australian economy was strong from June 2017 to Dec 2019.At the beginning of January 2020 unemployment rate increased from 5 percent to 7.5 percent by the end of June 2020.This indicates that the Australian economy is weak after corona virus out
eak
Inflation Rate:
Source : Resrve Bank of Australia
Inflation rate is indicated by consumer price index of an economy. If consumer price index is rising...