PART 2: AUSTRALIAN ECONOMY & RECESSIONS

Questions

2.1 A recession had been typically defined as two consecutive quarters of negative growth in real Gross Domestic Product (GDP). Based on this definition,

(a) identify the periods when Australia's economy plunged into a recession in the past 50 years; and

(b) clearly identify the cause(s) of each of these recessions identified in Q2.1(a).

2.2 Evaluate what happened to the below Australian economic indicators in the last two recessions in Australia. (Note: Your group must research and provide data on these economic indicators to support your answers).

(i) GDP quarterly performance

(ii) GDP components

(iii) Unemployment rate

(iv) Inflation