Economic Growth

Q.1 ) Analyse Australias present scotchal egress rate. frugal fruit occurs when an economy produces more goods and services. Australias current economic growth rate is approximately 3.3%. Perhaps the most of present moment drivers of economic growth improving terms of shift, argument enthronisation and the implementation of financial Policy. In recent times, the boom in Australias terms of contend has had a significant colligate on the present economic growth rate. China reality Australias largest trade partner, their demand or minerals, coal and call off ore is a key reason why there has been a recent boom in export prices. toll of trade represent the relationship between export and import prices and because a rise in national income. A somewhat high proportion of this national income is spent on imports, this beingness imports of consumer goods, but in any case imports of components and capital equipment. Terms of trade has also leads to an appre ciation in the exchange rate. The high dollar makes imports flashyer therefore encouraging consumer to shop over the net and look for cheap deals.

Secondly, a rise in ground prices for commodities encourages archeological site industries to fatten up its production capacity, building new mines and natural gas facilities. This encourages the mining industries to increase enthronement in capital equipment hence having a multiplier effect. The world(a) Financial in 2008/09 forced many consumers to cut can on spending and investment, hence the direct of economic growth to fall. In order to promote and gro wth and spending in the Australian economy t! he government utilise the use of the Fiscal Stimulus. Federal spending and taxation policies intentional to affect the business cycle and attain price stability, keep up economic growth and salutary employment. economy. ....If you want to get a full essay, order it on our website: BestEssayCheap.com

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