Personal Learning Journal 2 – written due week 11, oral due week 12Refer to the Overview of the most...

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Personal Learning Journal 2 – written due week 11, oral due week 12
Refer to the Overview of the most recent Reserve Bank of Australia Monetary Statements. See www.
a.gov.au >publications>; as well as relevant key economic indicators from the Australian Bureau of Statistics (www.abs.gov.au); TO
Consider any developments in the economy in recent quarters by reviewing the minutes of the monetary policy meetings of the Reserve Bank Board, as well as the trends in key economic indicators as published by ‘ABS’.
Pretend that a small business client has asked what you think will happen to “business cycle” and economic activity over the next 6-12 months. This client is an exporter of a unique product and has a significant fixed rate loan.
Based on your readings:
1. Decide which direction you think interest rates will move, or if you think they will remain the same. (Brief summary statement). Clue – link reasoning back to their effect on GDP/activity.
2. Write a
ief summary highlighting 3 KEY reasons for your belief of what stage of the “business cycle” you believe the economy to be at. (Minimum of 400 words).
Clue – link the reasons back to their effect on GDP; or their relationship with GDP. Discussion & theory in parts
1 & 2 should co
elate/concur.
3. Explain to the client what impact this might have on their budget forecasts and how. (Minimum of 200 words).
Your written submission must be written in words you would actually use if emailing a client (please no colloquialism) and contain full sentences and well-constructed paragraphs.

personal-learning-journal-2-wkiagmgp.docx

Abhishek · Accepted Answer

ECONOMICS
Table of Contents
Answer to Question 1	3
Answer to Question 2	3
Answer to Question 3	4
References	5
Answer to Question 1 
The Australian reserve bank is one of the recognised organisations in Australia. The interest rate of the bank affects the entire growth of GDP and itself affected by the rate of real GDP of the nation. It has been observed by the revival resource that the organisation cut off its interest rate by 0.75 %. However, the cash rate of the organisation is determined by 1.5% that affects the entire rate of GDP in the country. The rate of real GDP is being affected by it and this affects the spending power of people in the country. According to the financial requirements, the Australian bank should reduce its interest rate as it ensures the economic growth of the nation. As opined by Finlay and Price (2015), the rate of real GDP increases according to the rate of interest provided by the central bank of the nation. The lower rate of interest reduces the cost of borrowing and that affect the disposable income of the people of Australia. However, the rate of disposable income increases if the rate of interest reduced and that help to increase the purchasing power of common people. According to Rees, Smith and Hall (2016), it affects the entire rate of GDP and it helps to secure the economic growth of the country.
Answer to Question 2
It has been found that all kinds of business are going through several stages of the business cycle and it affects the rate of GDP in the nation. According to the present trend of business, the reserve bank of Australia is in the recovery stage of the business cycle where the higher authorities constantly focused on the entire factors that should recover for the better assumption of economic growth. According to Jorda,

Personal Learning Journal 2 – written due week 11, oral due week 12 Refer to the Overview of the most recent Reserve Bank of Australia Monetary Statements. See www.rba.gov.au >publications>; as well...

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