HI5003 Economics for Business

HI5003 Economics for Business
Tri3 2016
Topics for Group Assignment DUE Week 11
• GDP- Compare Australia with any other economy and discuss their GDP last 2 to 5 years and factors affecting their GDP
• Unemployment – Discuss the unemployment rate, types, issues, and government policy of Australia and comment unemployment in various states of Australia. You need to specify in different region like NSW, WA, Tasmania, Qld or SA.
• Inflation – Compare Australia with any other country from the list which includes Germany, UK, USA,China, India, Japan, Korea, Indonesia and discuss inflation and causes of inflation and the various governments policy on inflation.
• Monetary or Fiscal Policy – Discuss Australia’s Monetary or Fiscal policy during last 3 to 5 years.
• Economic Growth – Compare Australia with any other advanced economy or developing country and discuss their economic growth during last 5 years and its effects on the society. (both positive and negative)
Structure of the Essay
• Introduction – which topic 300 words
• Body- Discuss the topic from your secondary research with some theory -2500 words
• Conclusion 200 words
Note=
• Better marks for those groups who have collected and analysed secondary data effectively and applied the various economic theories/models.
• You need articles between 4 to 6 from media (written by Uni Professors, Business leaders, Journalists, Government agencies like RBA/ABS/ACCC, or any other stakeholders in the industry) on your topic to write a decent assignment.
• Some graphs and charts are required to support your analysis.
• You need to give Reference with your assignment. (4 to 6)

_________________________

This group assignment focuses on the topic of inflation and compares Australia with Germany. Inflation is an important economic indicator that measures the rate at which prices of goods and services rise over time. This assignment will discuss the causes of inflation, its effects on the economy, and the various government policies aimed at controlling inflation. Additionally, the assignment will compare the inflation rates of Australia and Germany over the last two to five years.

Body

Inflation is caused by various factors, including demand-pull, cost-push, and monetary factors. Demand-pull inflation occurs when aggregate demand exceeds the available supply, causing prices to rise. Cost-push inflation occurs when the cost of production increases, leading to higher prices. Monetary factors such as an increase in money supply can also cause inflation. Inflation can have negative effects on the economy, such as reduced purchasing power, reduced investment, and increased uncertainty. However, a moderate rate of inflation can stimulate economic growth.

Germany and Australia are both developed economies with relatively low inflation rates. Germany has had an average inflation rate of 1.3% over the last five years, while Australia has had an average inflation rate of 1.8% over the same period. The lower inflation rate in Germany can be attributed to its strong economy, sound fiscal policies, and the European Central Bank’s monetary policies. In contrast, Australia’s higher inflation rate can be attributed to factors such as higher import prices and increased government spending.

The government plays a crucial role in controlling inflation through monetary and fiscal policies. The Reserve Bank of Australia (RBA) uses monetary policies such as adjusting interest rates and open market operations to control inflation. Similarly, the European Central Bank (ECB) uses monetary policies such as quantitative easing and interest rate adjustments to control inflation in Germany. Fiscal policies such as taxation, government spending, and subsidies are also used to control inflation.

Conclusion

In conclusion, inflation is an important economic indicator that affects both developed and developing economies. This assignment has discussed the causes and effects of inflation and compared the inflation rates of Australia and Germany. It has also highlighted the role of the government in controlling inflation through monetary and fiscal policies. Overall, this assignment has demonstrated the importance of effective economic policies in controlling inflation and promoting sustainable economic growth.

References:

Reserve Bank of Australia, ‘Inflation Target’, viewed 2 May 2023, https://www.rba.gov.au/inflation/inflation-target.html
European Central Bank, ‘Monetary Policy’, viewed 2 May 2023, https://www.ecb.europa.eu/mopo/html/index.en.html
Australian Bureau of Statistics, ‘Consumer Price Index, Australia’, viewed 2 May 2023, https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
Statista, ‘Inflation rate in Germany from 2017 to 2022’, viewed 2 May 2023, https://www.statista.com/statistics/579517/inflation-rate-in-germany/
Trading Economics, ‘Australia Inflation Rate’, viewed 2 May 2023, https://tradingeconomics.com/australia/inflation-cpi