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Table of contents

Part A..

Part B..

Part C..

Part D..

References.

Macroeconomics - Part A

Introduction

The pandemic outbreak of COVID19 has led the global economy into a depression and massive downfall. In the current report, a systematic discussion has been carried out on the economic outbreak in Australia and China as a comparative study.

The economy of China and Australia along their cycle of business

Indicator

2016

2017

2018

2019

Nominal Gross Domestic Product (A$

billions)

1,703.6

1,703.6

1,897.7

1,990.3

GDP deflator

95.86

99.26

101.44

104.58

Calculate RGDP (for 2016 to 2019)

$1,207.19B

$1,277.19B

$1,339.17B

$1,329.18B

% change in RGDP (for 2017 to 2019)

2.77

2.37

2.94

1.90

Inflation rate (%) for 2017 to 2019 – use

GDP deflator

0.58

-0.4

0.57

-1.04

Table 1: Australian Economy

The Australian economy is phasing the economic cycle of expansion in 2018 to 2019 as the rate of the unemployment rate has been decreasing and GDP is increasing in the last few years (Trading Economy, 2020). The economy is experiencing relatively growing phases which are determining the expansion phase in Australia. 

Along with this, the aggregated demand like spending of the country is quite high in terms of their state of the economy. However, the net import has been decreased but the consumption and purchase of gold have been increased in the second phase of pandemic about 7%. The tourism-related services along with decreased AUD 3.73 billion. Additionally, due to the pandemic situation, the net export has been decreased by about AUD 34.49 billion of 4% (Trading Economy, 2020).

Indicator

2016

2017

2018

2019

Nominal Gross Domestic Product (A$

billions)

74,358

82,712

89,425

98,115

GDP deflator

101.15

105.35

106.85

110.35

Calculate RGDP (for 2016 to 2019)

11233.28

12310.41

1384.82

14342.9

% change in RGDP (for 2017 to 2019)

6.8

6.9

6.8

6.1

Inflation rate (%) for 2017 to 2019 – use

GDP deflator

6

6

-6.8

3.2

Table 2: Chinese Economy

Due to the COVID19 pandemic situation, the growth cycle is in recession. However, the government is manipulating the recession or tough cycle by modifying the interest rate. The government playing a special role in the business cycle as they encourage massive investment strategy in housing investment and infrastructure building. The current economy is showing but the recession is not felt by them. They are the great competitor of other countries who is providing cheaper export options. There is a 2% decline has been noticed in producer price and import price of China has been also increased.

Macroeconomics - Part B

Inflation and unemployment in Australia in 2019

The inflation is directly proportional to the unemployment rate, although, there is an unexpected fell in unemployment statistics can be noticed that is 6.8%. This is much lower than the previous statistics of 7.7%. After the end of the lockdown in this pandemic situation, the number of unemployment has been decreased from 86,500 to 921,800. Therefore, this is a rise in the employment cycle and this phase, this rise cycle can be continued. However, in this phase, the opportunity of work has not been uniformly increased in every sector and some sectors are still underutilisation. On the contrary, in August, there is an unexpected drop in the employment rate can be identified which is of 6.8%.

On the other hand, in the case of China, at the end of 2019, there is a rapid decline can be noticed in the employment rate (Trading Economy, 2020). This is a decline in the urban employment rate that is about 5.60% from 5.70%. there is a decline that can be noticed from 2018 to 2020 which is about 4.3%. However, there is a static and constant unemployment rate is identified in the Chinese economy in which, lack of full employment policy of the government. Additionally, in this pandemic condition, the statistics of employment has been decreased rapidly.

Macroeconomics - Part C

The economy of China in post-COVID 19 eras of 2020

In the first two-quarters of a slowdown to the normal business, the cycle can be identified. The government is playing a special role in this business cycle as a remarkable economic boom has been experienced that has influenced the annual growth by about 10%. As the country is relying on its cheaper export strategy. With the help of this strategy, they are providing higher competition to some neighbouring countries. The government is also adjusting lending and stock trading. The is a slower growth is noticed in the economy and reduction in the foreign reserve has been conducted.

In the case of unemployment, reduction in full-time employment has been noticed. Along with this, the government has a unique structure of employment calculation which is only determining urban employment. In this aspect, there is a decline of 5.6% unemployment can be noticed in the last quarter of July. There is a static and steady joblessness rate is recognised in the Chinese economy in which, absence of full business strategy of the administration. Moreover, in this pandemic condition, the insights of business have been diminished quickly (RBA, 2020).

On the other hand, in terms of the inflation rate, it is calculated on the Consumer Price Index (CPI) in China. Among all emerging countries, China is showing the lowest inflation rate among all the past years. Along with these, among all other countries which are facing COVID19 pandemic outbreak, China has the lowest rate of inflation among other countries. As the nation is depending on their less expensive fare procedure. With the assistance of this technique, they are giving higher rivalry to some neighbouring nations. The legislature is likewise modifying loaning and stock exchanging. The is a slower development is seen in the economy and a decrease in unfamiliar save has been directed

Macroeconomics - Part D

Analysis and Conclusion on the impact of China’s economy on Australian economic growth

Therefore, this pandemic situation has created economic disruption among all countries on a global scale. However, with the help of differential economic strategy, the Chinese government has successfully managed the outbreak effectively and lowers recession and issues in the economy. this pandemic circumstance has made monetary interruption among all nations on a worldwide scale. Nonetheless, with the assistance of differential financial methodology, the Chinese government has effectively dealt with the episode viably and brings down downturn and issues in the economy.

References for Monetary Policy

RBA (2020) Statement on Monetary Policy February 2020, Retrieved on: 23 September, 2020, From: https://rba.gov.au/publications/smp/2020/feb/

Trading Economy (2020) Australian Dollar, Retrieved on: 23 September, 2020, From: https://tradingeconomics.com/australia/currency

Trading Economy (2020) China GDP Annual Growth Rate, Retrieved on: 23 September, 2020, From: https://tradingeconomics.com/china/gdp-growth-annual

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Economics Assignment Help

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