BUS700 - ECONOMICS Research Report Assessment 3

Task 

Obtain the following macroeconomic data for Australia for the period 2002-2024: real GDP and real GDP growth rates, unemployment rates, inflation rates, interest rates (cash rates), exchange rates (US$ per A$), exports and imports.

(1) Using the graphs and statistical summaries of the data collected,

(i) Discuss how the growth rates of real GDP are related to inflation and unemployment rates, and

(ii) Discuss how the movements of Australia’s exports and imports are related to interest rates and exchange rates.

(2) Conduct a simple regression analysis to investigate how these macroeconomic variables (unemployment rates, inflation rates, interest rates (cash rates), exchange rates (US$ per A$), exports and imports) are likely to influence the growth rates of real GDP in Australia. Discuss the estimated effects.

(3) Given the insights gained from (1)-(2) above, discuss how monetary policies would contribute to the growth of real GDP in Australia? Support your discussion with plausible economic reasons.

Students need to support their analysis with a minimum of 10 academic journal articles plus the text. Students aiming for a Credit or higher grade will need to use more sources. Articles should be relevant and recent. Non-academic journal sources may also be used, but relevance and validity should be clarified with the lecturer/tutor.