BUS700 ECONOMICS T122
Table of Contents
There are the variables changes that happen in the macroeconomics of Australian and US economics. They have to make sure to make a plan to handle the situation. As the country’s economic handler they have to make the plan to handle the changes that appear. Changes are happening in the fiscal position due to changes in the macroeconomics of the country. The macroeconomic performance of the Australian economy increased. This is the report that helps both countries with critical analysis. According to the evaluation of the macroeconomic performance, this report will describe the economic changes.
During the evaluating the moment of the real GDP in Australia and the US, from 2004 to 2021. There are changes required in the economy changes. They have to make sure to handle the issue in the countries on the economic level. Due to changes in the variable microeconomics, some changes happen in the moment of the real GDP in Australia and the US. Based on the data and the record there are the upside and down changes happening in the GDP of Australia. The real GDP of Australia was 1,490,967 million US dollars. There are changes in the GDP of the country and it will change according to the changes in the economy. According to the data and based on the economic graph the net worth of Australia was worth 1330.90 billion US dollars in 2020, this is the official data that is issued by the world bank. This has been very clear that the GDP value of Australia represents 1.18 percent of the world economy (Baum, et al., 2015).
Due to covid -19, there are the changes in the GDP value of both the countries and for that, they have to do the changes in the market policy. The prices of the domestic and the other product will raise their cost in the market and because of this, the changes are happening in the market policy of the countries. Australia’s real gross domestic product there is a drop-down in 2019-2020. Due to changes happening from the covid-19. There is a drop-down of around -6.79 % in the gross domestic product of Australia. Therefore recovery requires in both Australia’s and US economies (Baum, et al., 2015).
On the other hand, there are the changes that happen because of the covid-19. Due to a lack, the prices of the products went high and people face a crisis in the market in both the countries. This will also, affect the real GDP of Australia and the US economy went down. Coronavirus disturbs the economic base and affects the working policy of both countries. They have faced the issue while importing and exporting the goods and the materials. A pandemic may cause issues in the companies and economic changes in the organization. This disturbs the health and the medical department of work on a large scale which may cause a serious issue in the organization (Ozili, 2020).
Australian government budget adjustment is required to maintain the economic cycle. They have to maintain the budget position between the cyclical and structural components. There has been effect appear in the countries and their economy gets imbalance. Due to this their economic effect happen on the countries and maintain their GDP. They have to make a budget plan for the economic settlement. This is the main reason the budget balance require in the organization. Australian government adjusted the budget just because of maintaining the economic cycle of their country (Beckman, 2021).
The economic cycle will describe the changes in appearance in the countries and the prices of the products increase. The effect on the economy will affect the budget deficit and this will be caused due to recession. They have to maintain the cyclical and structural components of their countries.
Budget maintenance is required in the countries for their economic management. There are the basic four dimensions included in the budget maintenance. During the maintenance of the budget, they have to do the high level of the strategy in which they have to calculate. Vision, mission, and goals that include in the budget development also, their maintenance (Beckman, 2021).
Australia’s new budget Aims to balance the books of the accounts of their country’s economy. In their new budget, they decide the foreign aid that they are paying around 70 percent of Australia’s foreign. They have to increase their budget will be around from $4.8 billion this year to $5.1 billion for 2013. Balance budget is an important thing to do in the company as they have to calculate the country’s revenue. They have to communicate with their trading partners and they have to remain an important indirect source of demand for Australian exports. The current account balance reflects the difference between the national savings and their investment. Two types of balance are required in maintaining the budget. There is a trend in Australia’s current account balance the trade balance is known as the primary trade income and therefore secondary income balance. This is the income that is known as the net income balance.
This is the important thing to do the budget-balancing in the countries for their economic measurement. As they have to calculate the revenue and the expenses of the non-government organization. This will help them to calculate estimate the value of the services and the revenue and the expenses of the company (Blinder, 2016).
This pandemic there is an effect happen that will cause a large amount of the unemployment. Due to covid-19, there is a drop in the unemployment rate to 6.2% which means there are 600,000 jobs. This will cause the loss of the jobs of most of the people in Australia because of the Covid-19. This may cause a disturbance in the economy of Australia and affect their GDP. Therefore the changes happen in the US too as coronavirus hit on the global level. This may cause a high level of risk appearance in both countries. As they have to make sure to handle the things and for this, they have to make a plan. This plan will help the country to come out from the risk that is happening due to covid -19. US economy destroy is because of the covid-19 and they have to make a better plan for the county’s development (Blinder, 2016).
According to the data in April 2020 there is the unemployment rate in the US country that is described the 14.8%. United state president declared a national emergency in their country on March 13th, 2020. This is because of the Covid-19 and it will affect the local areas and some sectors may affect because of this on a very large scale. The employment sectors in the private department and the importing also, the exporting will affected due to this. On the other hand, the case raised will disturb the branches of the medical staff. There is the effect appears in the medical industry and due to loss in the large. Most people will lose their jobs because the unemployment rate in the US will increase. This is affecting the economy and the other department this is also, creating the problem for the government of both the countries. Most companies will not be able to meet the desire of the employees. However, they are unemployment increases in the society most people will not be able to get a better level of the wages according to their demands (McKibbin, 2020).
Maintaining the budget balance as per the records and the desirable settlement that the country requires for its budget maintenance. Australia and US countries governments have to balance the budget section. As per the demand for the country’s development they have to maintain the economic cycle. The recession for the period is happening in the country for a long time as this will happen is because of the pandemic situation. They have to make sure to handle the things in their countries for better development. Due to covid-19 and the changes in the situation of the organization and the other changes requirement they will increase their inflation rate.
US inflation rate from the year after the lockdown and pandemic situation occur in the society. Some changes happen and due to this, they have to change their inflation rate too. In the year 2021, the inflation rate is 7.0% and the fund rate is 0.25%. therefore expansion is 5.9% this describes the hike in the inflation rate just after the covid-19. According to the current budget maintenance of Australia and the decision made by their government. As per the record, the current government budget surplus of 10463 AUD million, is decided in February of 2022. The changes are happening in the inflation rate of the Australian government sectors year by year. There is a drop-down in the inflation rate in Australia after 2021 (Cross, et al., 2020).
US and Australia both the countries have to make sure to make their budget the balance as they have to face the crisis in their economic sectors. This cerise affects all the private and the government sectors and even causes the unemployment in the countries on a large percentage level. This may cause difficulties for the common people in society. During the budget-balancing in Australia, the inflation rate went into stronger mode and this is because of the changes in the economy of the organization (Cross, et al., 2020).
During the covid-19 pandemic, both the Australian and the US governments pursued expansionary. There are various types of fiscal policies available in both the country’s market to reduce the negative impact of the pandemic on society. The country’s medical department needs the settlement and the better policy development in their countries (Cross, et al., 2020).
As the cases increase in the covid-19 and medical sectors will not be able to handle it on the global level. Even the WHO is also realize the notice of the emergency as according to the rescues and the cases increment in the society. Therefore most of the countries over there are unable to control the cases and the people’s death rate. The reason behind this is the improper facilities in the medical sector. As per the sources, the US spends $5.2 trillion on its fiscal policies during the time of the pandemic (Loxton, et al., 2020).
The types of fiscal policy and the monetary policy that the government of both the countries has to maintain at a low rate. Controlling the inflation and activity also, exchange rate and price expectations. These all are the monetary policy that they have to make them low at this rate. Therefore the fiscal policy in a medium-term framework they have to make sure to handle the fiscal policy after that. This will have to mention in the government balance sheet and the motive for reducing the amount of the fiscal policy. They have to reduce the amount of the fiscal policy in their government policy and maintain also, give them time for the people to come out from the risk and high level of the economic changes. As per the requirement of the countries and their government demand. There are three main types of fiscal policy in an economic equilibrium as they have to maintain this in their economic procedures (Loxton, et al., 2020).
According to the research report that has to explain the difference between both the country government changes. The changes are happening in both the country due to covid-19 and the pandemic changes happen. There are changes in the unemployment and the fiscal policy also, they have to handle the things. As they have to maintain the economic balance and the maintenance required in both the countries’ economic balance. As per the changes happening in the GDP of the Austria and US.
Baum, C.F., Kurov, A. and Wolfe, M.H., 2015. What do Chinese macro announcements tell us about the world economy?. Journal of International Money and Finance, 59, pp.100-122. Chinese Macro Announcements_v43g (bc.edu)
Beckman, J. and Countryman, A.M., 2021. The Importance of Agriculture in the Economy: Impacts from COVID‐19. American journal of agricultural economics, 103(5), pp.1595-1611. The Importance of Agriculture in the Economy: Impacts from COVID‐19 – PMC (nih.gov)
Blinder, A.S. and Watson, M.W., 2016. Presidents and the US economy: An econometric exploration. American Economic Review, 106(4), pp.1015-45. Microsoft Word – Presidents and the Economy July_2014_NBER_WP.docx
Cross, M., Ng, S.K. and Scuffham, P., 2020. Trading health for wealth: The effect of COVID-19 response stringency. International Journal of Environmental Research and Public Health, 17(23), p.8725. ijerph-17-08725-v2.pdf
Loxton, M., Truskett, R., Scarf, B., Sindone, L., Baldry, G. and Zhao, Y., 2020. Consumer behaviour during crises: Preliminary research on how coronavirus has manifested consumer panic buying, herd mentality, changing discretionary spending and the role of the media in influencing behaviour. Journal of risk and financial management, 13(8), p.166. jrfm-13-00166-v2.pdf
McKibbin, W.J. and Fernando, R., 2020. Global macroeconomic scenarios of the COVID-19 pandemic. Europe PMC
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global Economy. Available at SSRN 3562570. MPRA_paper_99850.pdf (uni-muenchen.de)