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(1)   
In the year
to December 2008, although real GDP
grew, real GDP per capita fell.

(a)    Give
the annual rates of growth reported
in the article for the period to December 2008 of the two terms in italics and
explain why they differ.                                                                                                   2

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Ans.
The yearly rates of development detailed in the article for the period to
December 2008 of the two terms are

 

Genuine
GDP growth= 1.5%

 

Genuine
GDP per capita development rate = -0.7%

 

We
know the equation,

 

Yearly
rates of development rate = Real GDP development – Real GDP per capita
development rate

 

=
1.5% – (- 0.7%)

 

=
2.2%

 

 

 

 

 

 

(b)  
From your answer to (a), what is population
growth for the year to December 2008? Show your working.                                                                                                                                                                            2

Ans.
Here, According to a,

 

Development
rate of GDP per capita= GDP development rate-GDP per capita development rate

 

=
1.5 %- (- 0.7%)

 

=
2.2%

 

Presently,
the equation is,

 

Gross
domestic product per capita = GDP/Population development

 

Or
then again, 0.7 = 2.2/Population development

 

Or
then again, Population development = 2.2/0.7

 

Or
then again, Population development = 3.14%

 

Hence
the populace development is 3.14%

 

 

 

 

 

 

 

(2)   
Where September 2008 = 100. The ABS reports that
Australia’s GDP per capital was 98.72 in December 2008 and it was not until September
2010 that GDP per capita, at 100.17, exceeded its September 2008 level (note:
these figures are not growth rates). What is annual growth rate of GDP per
capita over the period from September 2008 to September 2010 is implied by these
figures?                                                                                                      3

Ans.
accordingly here,

PV
(September 2008) = 100

 

FV
(September 2010) = 100.17

 

Time
(n) = 2 years

 

We
know,

 

FV =
PV (1+R) ^n

 

Or
then again, 100.17 = 100 (1+R) ^2

 

Or
then again, 100.17/100 = (1+R) ^2

 

Or
then again, 1.0017 = (1+R) ^2

 

Or
then again, R = 0.08496%

 

Along
these lines the yearly development rate of GDP per capita finished the period
from September 2008 to September 2010 is suggested by 0.08496%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)   
What is the official definition of a
recession?  On what basis does Greg
Jericho argue that, although there may have been no official recession since
the 1990s, he thinks there was one?                                                      3

Ans.    The Official meaning of a subsidence is
“A Recession is a huge decrease in movement over the economy, enduring
longer than a couple of months. It is unmistakable in mechanical creation,
business, genuine pay and discount retail exchange”.

Basically
whether there is recession or inflation in the economy, it will harshly effects
the standard of living of masses.

Despite
the fact that they didn’t have any official subsidence however their GDP falls
by little sum does not influence other. The working age populace encounter two
quarter of negative GDP development amid that period their additionally he
believes that subsidence happens. The family unit utilization was likewise
demonstrated gradually happen gradually appeared there. In this manner, based
on this subsidence is demonstrated in some way or another appeared there.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)   
 

(4)   
Jericho argues that talk of a “technical
recession” is “foolish” and proposes that we look for better signs of how the
economy is performing. Explain what these other signs are, and their impact on
the economy? 3

Ans. The
different signs whether the economy is doing great or awful indicating
soundness of economy are,

·        
Development
tumble around 7% which severely effect on the economy.

·        
The retail
deals around 5% causes awful once more compensation is tumbling down which is
likewise awful for economy.

·        
Besides the organization’s
benefit increments by 39.7% which is useful for economy.

·        
Capital
use increments by 0.3% which has great effect on it.

·        
Mining
is trailed by 22% for one year from now which is useful for solid economy.

·        
Family
unit utilization is down which has negative or awful effect, and so forth.

                By along these lines we can
without much of a stretch investigate how economy is going on.       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5)   
What recommendation would you give to your Board
of Directors regarding the health of the Australian economy? State at least 2
reasons to support this.                                                                                                                 2

Ans. The suggestion that I might
want to our Board of chiefs with respect to the wellbeing of the Australian
economy are that they should begin greater government spending like beginning
spending in school, corridors, healing facilities and so forth and setting up
work opportunity with great wages designs.

Moreover for this the good example is ”The Sky Rail Project” in Melbourne which is very
beneficial for the Australian economy.

The recommendation is innovation in techniques of investing,
trading, leveraging free trade agreements on which we still have to work.

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