Zusammenfassung der Ressource
Media Commentary
- Article information
- Source: ABC News
- Title: GDP: Happy 25th birthday to
Australia's economic growth
- Author: ONG, Thuy
- Date of publication : 07/09/2016
- Summary paragraph
- Australian economy grew by 3.3% over the year to June 2016
- Growing at the fastest rate in 4 years
- Signs look good, but it is still possible for a recession to occur
- Unemployment rate is 5.7% nation-wide, but higher in WA & SA
- GDP has only grown because of government spending
- Private investment spending & exports have decreased by a large amount
- Consumption spending has also decreased by a large amount because
of large household debt levels
- Do NOT introduce your economic concepts yet - talk about the concepts in the main body of your commentary
- Concept 1: GDP
- Definition
- Market value of all final goods & services produced within a
nation's geographic borders during a period of time, usually
a quarter or a year
- Explanation
- GDP is calculated by totalling all of the spending on final goods & services
in the economy. GDP = C + I + G + (X - M)
- Households (as Consumption spending)
- Government (as Government spending)
- Firms (as Investment spending)
- Overseas sector (as Exports)
- Supporting evidence from the article
- GDP growth was 3.3%, slightly above average & exactly what
economists were predicting
- GDP growth was at fastest rate for 4 years
- Whilst the economy is in "good shape", there is still
potential for the economy to go into recession
- Defined as two consecutive quarters of negative GDP growth
(or a situation where the economy is shrinking)
- This could occur because mining exports are no
longer making up a large part of the economy
- There is also concern about what caused the increase in GDP
- Government spending on building projects (G2) added 0.7% to GDP
- A very large addition to GDP
- Government spending was large enough to offset decreases in
other sectors of the economy
- If G decreases, the economy may slow down
- G2 mostly went towards building roads & other
transport-related infrastructure
- Investment is "in a state of collapse", therefore is
not contributing much to GDP
- The External (or foreign, or overseas) sector contracted,
therefore it did not contribute as much to GDP
- Household consumption also decreased, so this is not
contributing as much to GDP
- Concept 2: Circular flow model
- Definition
- A diagram showing the flow of products from firms to
households, the flow of resources from households to firms
& the flow of money payments in return
- Sectors include households, firms, the government sector,
the financial sector & the foreign sector
- Explanation
- Households sell resources (land, labour, capital & enterprise) to firms in the resource
market. In return, households receive income. Households then spend most of their
income purchasing goods & services from firms in the product market.
- Households save money in bank accounts, this is considered to be a leakage from
the model into the the banking (or financial) sector. The money is then injected
back into the model as businesses borrow money from banks to invest in capital.
- The government collects taxes from households and businesses, which represents a leakage from the model. The
government then injects money back into the model as government spending on wages for public employees (such as
teachers, nurses &police officers) (G1) & for public infrastructure (such as roads, bridges, schools & hospitals) (G2).
- Households & businesses spend money on purchasing goods & services from overseas (imports) which represents a leakage
from the model, as money is flowing out of the model, to foreign economies. Consumers from overseas countries purchase
goods & services from Australia (exports), which allows money to flow back into the Australian economy (injection).
- Supporting evidence from the
article
- 1st point
- 2nd point
- 3rd point - you get the idea
- Concept 3: Business Cycle
- Definition
- Explanation
- Conclusion
- Sum up the content of the article
- Re-state how your first concept related to the article
- Re-state how your second concept related to the article
- Re-state how your third concept related to the article
- Do NOT include any new information