Business Cycle

1566 WordsAug 13, 20097 Pages
ASSIGNMENT 1 Introduction In macroeconomics, business cycle played an important role to show what a national economy is going; therefore, this essay will define what business cycle is and its characteristics. Besides, all of variables such as Real Gross Domestic Product (RGDP), inflation and unemployment rate and their behaviour in the business cycle will be also demonstrated in the second part. The final part of this essay will analyse and compare the situation of Australian economy and USA economy in period of 10 years since 1998 based on the concept of “the business cycle”. In addition, this is the writer’s opinion about the business cycle relied on these above data about exhibit Australian and USA economy performance. WHAT IS…show more content…
3. Unemployment: _The economic problem happened when people who have abilities to work but they cannot find the job _It caused by: +The nature of changes in the structure of the economy (structural unemployment includes seasonal unemployment) + People leave a job to find a new one (frictional unemployment) +The level of demand in the economy is not sufficient to sustain full employment (cyclical unemployment) (Hansen, 2008). Australian Economy VS USA Economy Differently, a fiscal or financial year of each country is not the same. Normally, the financial year in Australia starts at 1 July of precious year and finish at 30 June of next year. In contrast, the financial year in US starts at 1 November of precious year and finish at 30 September of next year. Therefore, the statistics of Australia and US was gathered at the end of financial year of each year since 1999. |Country | Australia statistics | USA statistics | | | | | |Year | | | | |Growth rate (%) |Inflation rate |Unemployment rate (%) |Growth rate (%)|Inflation rate |Unemployment

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