2. Many people find the current unemployment figures for Australia a bit unbelievable. Why is this? Why might the official statistics be inaccurate? The current unemployment rate in Australia has left everyone not convinced of its authenticity. One of the reasons is because of what happened in August and September. Usually more jobs are lost in august and more are employed in September. However, this time round the opposite happened. There were121, 000 jobs created in august and jobs lost in September. ABS has admitted of having problems with the adjustment of the data which helps in eliminating the effects of seasonal changes. They have chosen to look for outside help to find a better method. There are several reasons that can cause the …show more content…
Using the simple Keynesian (J-W) model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What happens to the level of savings? What would happen to equilibrium income if there is a sustained rise in private investment spending?
An increase in the savings function will also in effect lead to an increase in the amount of savings. A sustained rise in private investment spending will lead to a rise in the equilibrium income.
4. State the difference between:
-Money multiplier and income expenditure multiplier.
Money multiplier shows the effect the money in the reserve has on the amount of money in the banking system while the income expenditure shows the effect that a change in the expenditure of both private and public sector has on the economy -between the interest rate and the exchange rate
The interest rate is the amount charged above the amount loaned, saved or borrowed while exchange rate is the value of a currency compared to another currency. - Between the balance of payments deficit and the budget deficit
A budget deficit is when spending is higher than the income while a balance of payment deficit is the difference when the capital and current account do not
Australia’s economic status can be assessed using a range of economic indicators such as unemployment rates, Gross Domestic Product (GDP), inflation rates and interest rates. The economy can affect Australian business’s greatly causing them to flow through the business cycle. The business cycle purpose is to describe the overall trends of the economy and can show growths of high or negative. The four stages in a business cycle are: expansion, this is when the economy has high demands; peak, this is the turning point of the expansions before the economy falls down. A contraction is when the demand for goods and services are low; and trough, is the opposite of a peak. To evaluate Australia’s current economic status factors such as unemployment
This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade.
In recent years, economists have demoted savings on the economic value chain. Keynesians view savings as detrimental to growth because the act removes money from circulation and decreases spending. Policy makers have made rules that reward spenders and reprimand savers.
Employment in Australia is on the rise with most people who are willing and able to work now having the opportunity to do so. Economists consider 5% unemployment which was the value in January recorded by the Australian Bureau of Statistics. Greater number of jobs created because of factors such as the mining boom and the recovery effect in Queensland because of the floods will further lower the unemployment rate. This will have the effect of consumers having more disposable income thus requiring an increase in long term interest rates.
Unemployment: As can be seen in Fig 3 below, the unemployment rate in Australia has recently dropped below 5.8%, which is the lowest it has been for over 20 months. This is despite the economy struggling over the previous 12 months due to a fall in investment in the mining industry. This has led to the Reserve Bank of Australia (RBA) reducing interest rates on two occasions in the past 12 months to encourage the non-mining sectors of the economy to fill this void and invest in resources, but some businesses are still reluctant to spend money. NAB economist Tapas Strickland said he expected strong jobs growth to continue into 2016, stating “ The forward indicators, such as jobs ads, suggest employment growth of 2% a year, and when you do the calculations, that implies 20,000 (jobs added) per month”. (Guardian, 2015).
In comparison to US, Australia’s structural unemployment rate is higher (Statista, 2018) that gives some ground for Australia to lower the unemployment rate from the nation (Australian Government Budget, 2004-05). Before the Second World War, the unemployment rate of Australia was only around two percent. Due to increase in working age population in Australia, along with increase in employment, unemployment rate also increases. Rapid growth in economy, trained workers, educated and skilled workers, expansion of business in country will lead to lower the unemployment rate.
Poverty, deprivation and exclusion (Saunders, 2011) are factors that have been identified as Australian societal consequences that affect the unemployed today. This essay will gain a greater knowledge of complex social disadvantages that must be recognised. In doing so studies, debates and solutions have the opportunity to gain further insight into how citizens value issues of poverty and disadvantage. While at the same time (Blakemore & Warwick-Booth, 2013) understanding how Governments introduce social policies as a means of ‘real world’ problem solving. With the purpose of understanding income management and unemployment. This essay will explain the (Blakemore & Warwick-Booth, 2013) intentions, statements, goals and ideas behind
An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.
Since the 1990’s 75% of new jobs created have been casual. Structural reform has lead to underemployment within the labour force, where employees are working less than full time hours and are willing to work more hours. The average Australian works only 16 hours a week and 1 in 3 part-time employees’ want more hours indicating the under-utilization of the Australian labour force. In addition, by 2013 to 2014 only 30% of occupations experienced skill shortages in relation to the 2007-08 periods which saw skill shortages increase by
In Australia there is a consensus that think that the unemployed don’t want to work and are not willing to find work; this claiming that they are lazy and conning the government for benefits (if they receive them). However, not all unemployed actually enjoy being without a job to survive and struggle with not having enough job opportunities, not being able to work due to lack of qualifications and not willing to take a job that will lead them to deficit (Csoba, 2010). Looking at it from a conflict theorist’s point of view it is people who have the money and the power that generate these limitations that unemployed members of society face. For
Australia’s economy is much better then South Korea’s. This essay will be comparing five different areas of the economy. These include economic growth and the quality of life, employment and unemployment, distribution of income, environmental sustainability and the role the government in health care, education and social welfare. Income is a necessity to achieve higher living standards. Australia’s average household income is 31 197 USD per year, South Korea’s average household income is only 18 035 USD per year.
As there are more and more people coming to Australia to study and to seek for jobs, the competitive ratio is higher and
In March 2015, Greg Jericho published an article called Weak, weak growth and six things about the state of Australia’s economy that outlined how in the past 6 out of 10 quarters the Australian
In the past quarter the unemployment rate in South Australia has remained steady at 5.6% (Australian Bureau of Statistics, 2009) but this figure is volatile and may increase next month. The youth unemployment rate, however, in South Australia remains at 21.9% with the Western and Northern suburbs having significantly higher