Obtain the following macroeconomic data for Australia for the period 2000-2019: 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 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
Report format: 1500 – 2000 words report in Word.doc or .docx. Title page, executive summary, table of contents,
appropriate headings and sub-headings, recommendations/findings/conclusions, in-text referencing and reference list
(Harvard – Anglia style), attachments if relevant. Single spaced, font Calibri 11pt.
Recommended sources of data are:
However, data may also be obtained from other credible sources. Also, recommended readings for government policies
• Statement on Monetary Policy of the Reserve Bank of Australia for insights of monetary policies in Australia.
• Budget documents for insights of fiscal policies in Australia.