Subject Name: Economic Principles and Decision Making

Course Code and Title: ECON6000- Economic Principles and Decision Making

Assessment 1: Case Study- Macroeconomics

Executive Summary

This report is developed to understand the current economic situation in Australia due to
emergence of Covid-19 pandemic. The report introduces the macroeconomics and social
impact and overall performance of the Australian economy by outlining a detailed
discussion on the relevant macroeconomic indicators. This case study contains the
macroeconomic indicators to help us to know how the Australian economy is carrying out
their performance. The case study entails the comparison between the Australia and India
and their applied Reserve Bank of Australia and Multinational agencies and how the
government can recover the post Covid-19 recession in Australia. The study of the current
situation reveals that the Australian government has worked very hard to safeguard a
sustainable economic recovery and relatively steady growth by implementing stringent
lockdowns and travel restrictions both interstate and overseas visitors. The government has
set several macroeconomic goals that includes; unemployment, minimises inflation rate,
increased GDP. In order to meet these goals, the government along with the Reserve Bank
of Australia has put in place macroeconomic policy. This is applied through fiscal policy,
monetary policy and exchange rate. The end part of the report summarizes the
recommendations and conclusions that the Australian government can take to work
effectively to revive the Australian economy very quickly.
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About Macroeconomics

Macroeconomics is the branch of economics that deals with the economy and its
performance as a whole. The macroeconomic indicators are gross domestic products,
unemployment and price index. Macroeconomics is very helpful to the planner for preparing
economic plans for the country’s development. The major concerns of Macroeconomics are
Aggregate Supply, Aggregate Demand, Saving, Inflation/Deflation, Economic Growth,
Unemployment, Trade Cycle, International Trade, Economic Policy (Fiscal
Policy/Monetary Policy).

Macroeconomics helps to understand the performance of a complex modern economic

system. It describes how the economy and the level of national income and employment is
determined on the basis of aggregate demand and aggregate supply. Moreover, it analyses
the forces which determine economic growth of a country and explains how to reach the
highest state of the economic growth and sustain it. Macroeconomics helps to bring
constancy in price level and examines variations in business activities. It helps the country
to solve economic issues such as poverty, unemployment, inflation, deflation etc.

Macroecomics performance and social impact

The Australian economy is one of the largest diverse market economies in the world. The
economic growth of the Australia mainly depends on the mining and the agricultural sector.

Retail and E-Commerce industry

Australia’s retail industry has also declined in April as the number of coronavirus cases are
emerging. According to the Australian Bureau of Statistics (ABS) 2017, industry’s turnover
has fallen almost 20%. The GDP fell 0.3 % in the March quarter, expecting that the fall will
be far more in the June quarter. Formerly, Australian consumers mainly bought more
optional items online, such as apparel and electronics but now, there are only doing online
shopping for essential items such as groceries, pharmacy products.

Mining

The mining industry is one of the largest economic industries in Australia accounted for
about 6.4 % of
dline postponements. On May 12 the Prime Minister declared an overall economic package
worth INR 20 lakh crore,10% of India's GDP, with importance on India as a self-reliant
nation.

The lockdown had brought the Indian economy to a halt. The instant impact of the pandemic
was on the travel, tourism and hospitality sector. Slowly and gradually, it impacted the
manufacturing, agriculture, public administration, etc. This ultimately reduces the
References

Australian Government. (2013) “Budget Strategy and Outlook”, Budget Paper No.1: 2
Commonwealth of Australia, Canberra

Reserve Bank of Australia (RBA), About monetary policy, https://www.rba.gov.au/monetary-

policy/

Reserve Bank of Australia (RBA) https://www.rba.gov.au/covid-19/

WHO Commission on Macroeconomics and Health, Ed. 2001. Macroeconomics and Health:
Investing in Health for Economic Development. World Health Organization.

Reid, A. H. and J. K. Taubenberger (1999). “The 1918 flu and other influenza pandemics:
"over there" and back again. Laboratory Investigation” Journal of Technical Methods and
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Maliszewska, M., Mattoo, A. and van der Mensbrugghe, A. (2020). “The Potential Impact of
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Barro, RJ. (1991). “Economic Growth in a Cross-Section of Countries. The Quarterly

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Australian Bureau of Statistics. ABS graphic showing proportion of Australian Business

Population operating during COVID-19 shutdown. https://www.abc.net.au/news/2020-04-
08/abs-graphic:-proportion-of-australian-business-population-opera/12130566?nw=0.

Alon, T.M., et all. (2020). ‘The Impact of Covid-19 on Gender Equality’. NBER Working
Paper, 26947. Cambridge MA: National Bureau of Economic Research.
https://doi.org/10.3386/w26947

UNCTAD (2020). “Impact of Covid-19 Pandemic on Global FDI and GVCs’. Investment
Trends Monitor (March). Geneva: United Nations Conference on Trade and Development

WTO (2020). ‘Trade Set to Plunge as COVID-19 Pandemic Upends Global Economy’. Press Release,
855, 8 April. Geneva: World Trade Organisation
https://www.wto.org/english/news_e/pres20_e/pr855_e.htm