Global economy

Table of Contents-

• Part A: 2
• Answer to question 1: 2
• Answer to question 2: 6
• Answer to question 3: 9
• Part B: 10
• Answer to question 4: 10
• Part C: 11
• Reference: 13

Part A:-

Answer to question 1:

Gross Domestic Product (GDP) at consistent costs is a method of analysing country’s domestic production with inflation adjustment. With the assistance of this, the development of a specific economy can be analysed. For the present study same has been done and it has been tried to showcase how these countries exhibit their Real GDP and factor productivity association (Van 2017). Real GDP and all out factor efficiency of every nation expanded persistently somewhere in the range of 1950 and 2014. In any case, the connection between these two macroeconomic markers is same for all nations with the exception of Japan. In Australia, China, France Germany alongside the UK and USA, both Real GDP at steady national costs and absolute factor efficiency at consistent national costs expanded ceaselessly since 1950. In Japan, Real GDP expanded continually however factor profitability stayed dormant throughout the years. On the opposite side, factor efficiency of Spain expanded radically while Real GDP of this nation expanded at a slower rate. In any case, from the over 8 graphs, it tends to be said that Real GDP at consistent national costs and all out factor efficiency at steady national costs have a positive association with one another. In any case, the size of estimations of these measures is extraordinary. Subsequently, any correct connection between them can't be built up. In this specific circumstance, it is basic to make reference to that worldwide money related emergency of 2008 did not impact Real GDP development of the vast majority of nations unfavourably aside from the UK, USA and Spain. This is on the grounds that this budgetary emergency was begun in the USA and it influenced the financial state of the UK altogether. Be that as it may, it is likewise basic to specify that this monetary emergency couldn't diminish all out efficiency of UK and USA however that of Spain declined. This monetary emergency did not influence Australian economy specifically and for this he Real GDP of this nation expanded ceaselessly. From this relationship, one might say that all out efficiency of these nations impacted the Real GDP to become further through creating noteworthy measure of national item.

Answer to question 2:

 Table 1: Economic performance of Australia

As per the above table it can be seen that GDP per capita as well as the government expenditure of Australia has increased over the years. With the fluctuation in the imports, GDP per capita has fluctuated moderately depicting dependence of the state on the international trade. On the other hand it can also be seen that as GDP per capita of the state has changed over the years, imports of good increased for the state and the government expenditure as well depicting growth of the state. Australia has highest amount of government expenditure among the chosen nation, however, it has lowest imports. This showcase the lower amount of dependence of the state on the international market for its sustainability.

Table 2: Economic performance of France

As per the above table it can be seen that GDP per capita as well as the government expenditure of France has increased over the years. With the fluctuation in the imports, GDP per capita has fluctuated moderately depicting dependence of the state on the international trade. On the other hand it can also be seen that as GDP per capita of the state has changed over the years, imports of good increased for the state and the government expenditure as well depicting growth of the state. It is important to mention that the government consumption of the state was second highest among the chosen nations.

Table 3: Economic performance of Germany

As per the above table it can be seen that GDP per capita as well as the government expenditure of Germany has increased over the years. With the fluctuation in the imports, GDP per capita has fluctuated moderately depicting dependence of the state on the international trade. On the other hand it can also be seen that as GDP per capita of the state has changed over the years, imports of good increased for the state and the government expenditure as well depicting growth of the state.

Table 4: Economic performance of Japan

As per the above table it can be seen that GDP per capita as well as the government expenditure of Japan has increased over the years. Arguably, among the chosen countries central government debt of Japan was highest, however GDP per capita was lowest. However, it is also true that government final consumption of the state was rising at the highest rate among the chosen countries depicting good growth of the international presence of the state.

Answer to question 3:

The above figure speaks to unfilled occupation opening for Australia and joblessness rate considering the age of 15 or more. The report plans to discover a connection between these markers. From figure 9, it very well may be seen that the pattern of unfilled employments has expanded persistently since 1980. This further decreased the chance to make work. On the opposite side, the pattern of joblessness rate diminished amid a similar period. This infers complete unfilled opening later given work chance to jobless individuals in Australia. Therefore, expanding pattern of this caring occupation further helped the joblessness rate of this nation to diminish ceaselessly. Be that as it may, from the above outline, it can likewise be seen that unfilled employments expanded at a steady rate however this could diminish the rate of joblessness at a similar rate. Thus, the joblessness rate in this nation couldn't diminish adequately. This further reflected financial handicap of this nation to give abundance work supply in the market to required individuals. In any case, this circumstance may be spoken to basic joblessness. This is on the grounds that unfilled employments may require works with higher aptitudes while the vast majority of the general population did not have this. For this, these works wound up unsuccessful to discover a vocation according to their aptitudes.

Part B:

Answer to question 4:

Aggregate demand of an economy shows the purchasing of goods and services for a given time period. More specifically, it can be written as, aggregate demand= total consumption expenditure+ investment spending + government expenditure (Mankiw, 2014). Therefore, from the given solution, it can be mentioned that with the rise of government expenditure, the short run aggregate demand curve would shift towards the upward direction. As a result, for maintaining the equilibrium, both the level of price and the quantity demand would be increased. In order to maintain the level of price with the previous situation, the short run aggregate supply curve would also shift to the right direction. However, the shift of aggregate supply curve is dependent upon the supply of goods, not on the government expenditure (Koop and Korobilis, 2010).

It is clearly observed that the short run aggregate demand curve is shifted from the position of D1 to D2 after the increasing of government expenditure. Therefore, after shifting the aggregate demand curve, both the price level and the quantity would be changed to P2 and Q2 respectively. Furthermore, the aggregate supply curve would be shifted to the outward direction that is from S1 to S2. However, in the long run, the aggregate supply curve is vertical in shape, which can be observed in the following diagram.

Tough the long run aggregate supply curve is vertical; however, aggregate demand curve would be shifted to the right direction also in the long run. Since, long run aggregate supply curve is static; therefore, the changing of price level compared to the situation of short run would be more. Nevertheless, the quantity demand would be in the same position (Agénor and Montiel, 2015).

Part C:

1. After completing my study, I would like to join any retail sector of Australia as a policy maker. Woolworths is an Australian supermarket chain, which was founded in the year 1924. Along with the Coles, Woolworths has been playing the role of duopoly and holds 80% of the country. The Headquarter of the company is in New South Wales and operating approximately in 995 locations. Approximately 115000 workers are connected with the organisation. In order to hold the leadership position as well as to maintain its organisational performance level, Woolworths need to contact policymakers. The policymakers would be beneficial to provide effective economic decisions to the company, which in turn improve the financial performance level of the organisation.
2. Being a policy maker, I am efficient enough to generate innovative organisational planning and ideas. It would in turn help the company to hold the leading position in the competitive Australian market place. However, it is noted that policy making is not associated with the business law, instead of; it is related to the business actions. Apart from this, after joining the company as a policy maker, my career growth rate would be expanded more sharply. Consequently, my experience level of working with the company would widely increase my skills and knowledge. Since, I am a student of macroeconomics; therefore, I have additional advantage to successfully and efficiently play the role. I think I require to formulate the organisational policies in such a way, so that it would accelerate the margin of profitability margin over the period of time.
3. Reason of selecting the position of policy maker

Policymaking is the most appropriate position, which is completely aligned with my academic career. This is the prime reason of choosing this position for joining the organisation. It would constantly help me to reflect my learning in the technical works. In addition, I have potential in taking optimum organisational decision, which in turn brings success in the business. Apart from this, I have leadership power and hence, I am capable to convince my fellows towards the right direction. It would successfully enhance my career path. I would like to join federal bank as a policy maker within next 10 years. In addition, I would like to complete Ph.D. in the similar domain, which would add extra benefits in my professional path.

4. As per the given video it can be seen that it argues regarding the different aspects and career option of the learners with the knowledge of economics and policymaking. The video is particularly interesting where it showcase the different job opportunities for the learners and how one can excel in their career with the same. Interview has showcase different skill gap issues and industry sustainability where one of the main point was adaptability. There were some unanswered question that I would like to talk with my tutor as I guess he will certainly be happy with my queries.
5. As I have not done the MWL101, here I would like to express the ways to mitigate the gap so that I can enhance my career opportunity. In order to do so, I would like to do some internship in some renowned organisation as a policy maker where I can learn and practice my knowledge in real scenario. Preferably I would like to have an internship for the 6 month long and during this time I will sharpen my knowledge and understanding regarding the policy making with the available resource.

Reference:

• Agénor, P.R. and Montiel, P.J., 2015. Development macroeconomics. Princeton University Press.
• Fred.stlouisfed.org 2019. Federal Reserve Economic Data | FRED | St. Louis Fed. [online] Fred.stlouisfed.org. Available at: https://fred.stlouisfed.org/ [Accessed 16 Jan. 2019].
• Koop, G. and Korobilis, D., 2010. Bayesian multivariate time series methods for empirical macroeconomics. Foundations and Trends in Econometrics, 3(4), pp.267-358.
• Mankiw, N.G., 2014. Principles of macroeconomics. Cengage Learning.
• Van Marrewijk, C., 2017. International trade. Oxford University Press.