Australia? Australia.
map:
This map shows the cities and the geography of Australia.
Capital:
City of Canberra is the capital of Australia. Sitting at 550 meters above sea level, it has a typically dry climate with warm, dry summers and cold winters. Snow is rare, though fog and overnight frosts are common. In summer, the highest temperature was 42.2 Celsius and the humidity is normally low. Rainfall is even throughout the year and most thunderstorm activity occurs between October and April.
Official government Website:
You can access the official government website here: http://australia.gov.au. This website includes various types of information about government initiatives, and links to other websites, such as http://www.business.gov.au/Pages/default.aspx where you can find information about business regulations.
Monetary Unit:
Australia uses the Australian Dollar, otherwise known as the AUD. According the Bloomberg on 5/21/14, the exchange rate of USD to AUD is 1 USD to 1.08 AUD.
Chief exports:
As it shows on the graph the chief exports of Australia are Bovine meat, which is regular red meat. Natural gas which is gas found in the ground and is used for power or heating a house. Now all of those on the graph are there chief exports and I won't explain them all, but the graph tells you how much Australia makes on each one. However, travel services and education take first and bovine meat last. Chief exports related to the GDP, since all of these products are built in the country and then sold to other countries. It also relates to profit motive, because instead of storing the products for their own benefit or reserves, they export it to other people for money.
Chief Imports:
Australia chief exports are manly fish like whole finfish or prawns. Prawns are a fish that is like a larger shrimp. Australia mainly just imports fish, which is quite ironic, considering its geographic location. This relates to GDP, since imports are subtracted from the GDP because they are basically expenditures. It also relates to supply, because as the supply of certain items from within Australia fall, the amount of imports that Australia needs increases, and as the supply of certain items from within Australia increase, the amount of imports that Australia needs decreases.
Balance of trade:
What is balance of trade? Balance of trade compares the values of imports and exports of a country and compares them. The difference of exports to imports is the value of the balance of trade Australia's March balance of trade value was 731 million Australian dollars. The export dollar value in Australian dollars, 29033.00 million Australian dollars, narrowly beat the import dollar value of 28302.00 million Australian dollars. This balance of trade value is lower than the estimate forecast of 888.4 million Australian dollars, and most likely indicates a contraction, the third stage in the business cycle, because the balance of trade value has started to decrease, however, it has not reached a negative value. Also, since a likely peak has been reached very recently, it is highly likely that a contraction has started in the business cycle. Also, since the Exports have started to decrease, it means that the GDP will also start to fall in relation to the contraction in the economy of Australia. In the United States, however, we are past trough, the fourth stage of the business cycle and the lowest point, and starting a new business cycle, starting from stage one, expansion, an increasing economy, again. However, since the United States imports large amounts of oil and foreign goods, it continues to stay at highly negative balance of trade. Its March balance of trade value is -40378 million USD, equivalent to -43608.24 million AUD.
Gross domestic Product:
The Gross Domestic Product (or GDP) is a measure of the all goods and services produced with in the borders of a specific country in one specific year. So, imported goods and goods that are resold as old or used are not counted for that year's GDP. According to Heritage.org, Australia's GDP is 970.8 billion US dollars, which approximates 1048.46 billion Australian dollars. The reason why the GDP is held in such high regard is that most commonly, if you produce more in your country, it is much more likely that more people will have more jobs and eventually lead to low or stable unemployment rate. That means that you never have too many people who are doing nothing, and if it is stable, at least it is highly unlikely that they may suddenly go on strike and stop working. Also, another thing that people most commonly use the GDP for is to indicate economic growth. As GDP increases, it means that also there is more money that is spent and used, which hopefully means that both consumers and producers are using more money, helping the country's economy over all. The US's GDP, in comparison is 15,684.8 billion USD, approximately 16,939.58 billion AUD. That is 15,891.12 billion AUD or 14,714 billion USD that the US has more than Australia. However, this is also coincidentally is one of the pitfalls of the GDP, which is that it does not calculate for GDP proportionate to population, so countries with larger populations may seem to have a higher GDP than a country with a smaller population.
Country Overview:
What is Australia like? Well, here are some answers. Australia has a population of 23.06 million people, but it is not crowded, because Australia has a surface area of 2,969,907 miles. Australia is located right in the middle of the Indian ocean and on the Tropic of Capricorn. Australia is also an island that most people like to call the home of the kangaroos. Since there is a big population, this increases the spending, increasing the GDP and causing an expansion, the phase in the business cycle where the economy grows or expands, in the economy like the U.S.A.
Government Overview:
Australia is run as a Constitution and the whole country is effectively a commonwealth. Australia also has its own Constitution. There are six States with three self-governing Territories.
The Parliament functions as one of the three branches of government, with the other two being the Executive government, and the Judicature. The idea is that the three branches of government will prevent from an oppressive government. It is about equivalent to the Legislative branch in the US government. The Parliament mainly has the right to pass laws. The Parliament consists of the Queen, represented by the Governor-General. It also has two Houses, similar to the structure in the US. The Parliament also provides members to the Executive government, and after voting, the House of Representatives becomes the running party, and its leader the Prime Minister. Ironically, the official Opposition plays a big role in the Parliament, which is made up of the party or coalition of parties that have the most non-government members in the House of Representatives.
The Executive government has actually varied over the years in Australia that if you try to literally read the Constitution, you may misunderstand its modern government structure. The power is possessed by the Prime Minister and the Cabinet, comprised of senior Ministers. These positions are actually carried over from the Western government systems, such as the UK, and is not written on the Constitution. The Cabinet, Ministers, and Parliamentary Secretaries. And contrary to what would seem logical, the Governor-General, performs the ceremonial side of the government, while the actions are carried out as the Prime Minister and other Ministers advise him or her to. He or she can perform many executive actions. he also has powers known as "reserve powers" as written in the Constitution that basically allow the Governor-General to act independently from the Parliament, and can dissolve the House of Representatives or both Houses if he or she sees necessary. However, these powers are debated heavily, since not many can agree on when these powers should be used, since it is not explicitly stated in the Constitution.
The Federal Executive Council is a constitutional mechanism for providing ministerial advice to the Governor-General. It may seem extra, or not needed, however a big part of this council is to ensure that matters brought up to the Governor-General are well documented, in accordance with government policy, and that they are legally and constitutionally valid.
The Queen of Australia has a highly symbolic title, and her only real political significance is to choose the Governor-General, upon which she is advised by the Australian Prime Minister. Interestingly, the Queen of Australia is the Queen of the United Kingdom, however British politics do not play into her part in Australia.
The Judiciary largely holds the judicial power of the Commonwealth. They also have the ultimate say whether something is Constitutional or not. Almost everything else is controlled by the Parliament, such as choosing or removing judges and creating federal courts.
Due to Australia's government system, they have a mixed market, or an blend of government and free market. Also, the government can also affect which part of the business cycle the country is in indirectly. The government can use fiscal policies, which are raising/decreasing taxes and raising/decreasing government spending. They can both prevent a recession, or prevent a hyperinflation.
The Parliament functions as one of the three branches of government, with the other two being the Executive government, and the Judicature. The idea is that the three branches of government will prevent from an oppressive government. It is about equivalent to the Legislative branch in the US government. The Parliament mainly has the right to pass laws. The Parliament consists of the Queen, represented by the Governor-General. It also has two Houses, similar to the structure in the US. The Parliament also provides members to the Executive government, and after voting, the House of Representatives becomes the running party, and its leader the Prime Minister. Ironically, the official Opposition plays a big role in the Parliament, which is made up of the party or coalition of parties that have the most non-government members in the House of Representatives.
The Executive government has actually varied over the years in Australia that if you try to literally read the Constitution, you may misunderstand its modern government structure. The power is possessed by the Prime Minister and the Cabinet, comprised of senior Ministers. These positions are actually carried over from the Western government systems, such as the UK, and is not written on the Constitution. The Cabinet, Ministers, and Parliamentary Secretaries. And contrary to what would seem logical, the Governor-General, performs the ceremonial side of the government, while the actions are carried out as the Prime Minister and other Ministers advise him or her to. He or she can perform many executive actions. he also has powers known as "reserve powers" as written in the Constitution that basically allow the Governor-General to act independently from the Parliament, and can dissolve the House of Representatives or both Houses if he or she sees necessary. However, these powers are debated heavily, since not many can agree on when these powers should be used, since it is not explicitly stated in the Constitution.
The Federal Executive Council is a constitutional mechanism for providing ministerial advice to the Governor-General. It may seem extra, or not needed, however a big part of this council is to ensure that matters brought up to the Governor-General are well documented, in accordance with government policy, and that they are legally and constitutionally valid.
The Queen of Australia has a highly symbolic title, and her only real political significance is to choose the Governor-General, upon which she is advised by the Australian Prime Minister. Interestingly, the Queen of Australia is the Queen of the United Kingdom, however British politics do not play into her part in Australia.
The Judiciary largely holds the judicial power of the Commonwealth. They also have the ultimate say whether something is Constitutional or not. Almost everything else is controlled by the Parliament, such as choosing or removing judges and creating federal courts.
Due to Australia's government system, they have a mixed market, or an blend of government and free market. Also, the government can also affect which part of the business cycle the country is in indirectly. The government can use fiscal policies, which are raising/decreasing taxes and raising/decreasing government spending. They can both prevent a recession, or prevent a hyperinflation.
Detailed overview of Economic History:
Australia historically has always been a big importer, since there are limited resources on the continent of Australia. From personal experience, I know that pretty much only the coastline and a few cities in land are hospitable, much of Australia's land mass is desert and inhabitable lands. It has had a few recessions through out the 1960s-1990s, however, after that, the GDP growth has been almost always positive. Now, while on the graph shown, it may not seem like it is all positive, you must realize that it is a graph of GDP growth, and not GDP, so where it seems like it is going down, it is actually the growth going down, and not the GDP.
The fact that GDP growth has entirely remained positive in the 20 years indicates that Australia has had pretty good economic growth, one of the five economic goals. Economic growth is important to an economy because more people will have jobs, businesses will be able to use more capital, and the government, from using taxes will be able to levy taxes off of the money made by the consumer and businesses.
Also, unemployment rates have also dropped to a slightly higher than an all time low of 4 percent, at 5 and a quarter percent during mid 2009. Unemployment is an economic indicator that is often used to tell how well an economy is doing. If more people are working, it generally means that the economy is in good shape. Low unemployment rates means that very high efficiency has been reached, and relates to another economic goal, which is economic efficiency. Economic efficiency is important because you want everyone to be working and not wasting time and being unproductive. Also, by achieving economic efficiency, you can produce more goods and/or services.
The fact that GDP growth has entirely remained positive in the 20 years indicates that Australia has had pretty good economic growth, one of the five economic goals. Economic growth is important to an economy because more people will have jobs, businesses will be able to use more capital, and the government, from using taxes will be able to levy taxes off of the money made by the consumer and businesses.
Also, unemployment rates have also dropped to a slightly higher than an all time low of 4 percent, at 5 and a quarter percent during mid 2009. Unemployment is an economic indicator that is often used to tell how well an economy is doing. If more people are working, it generally means that the economy is in good shape. Low unemployment rates means that very high efficiency has been reached, and relates to another economic goal, which is economic efficiency. Economic efficiency is important because you want everyone to be working and not wasting time and being unproductive. Also, by achieving economic efficiency, you can produce more goods and/or services.
unemployment rate
The unemployment rate of australia is 5.8%. this has remained unchanged throughout the months and is a very good one too. Why is this so good? It's because 5% of the unemployment is due to frictional, structural, and seasonal unemployment which, are in order, are when people are looking for a job because they just quit or got fired from one, and when people don't have the required skills for a job, and when people are not in the right season (weather) for their job. These are considered the natural factors of unemployment, so it is ok for there to be some unemployment. This means only .8% goes to cyclical, related to the business cycle, unemployment which is when the business is producing too much or has too little.
Percentage of population under the poverty LIne:
Since there is no poverty line in Australia, it is very difficult to tell who is under the poverty line. Although their unemployment rate is only 5.8%, with the poverty line defined as less than 50% of the median wage, almost 12.8% of the total people are living under the poverty line. Also, 17.3% or 575,000 children are living below the poverty line. That is 2,265,000 people, which is a sizable amount of people. 62% of those people are from houses where the main income is from social security. 14% of women were under the poverty line compared to 12% of men, and 54% women were living households below the poverty line compared to 46% men who were living in households below the poverty line. This shows more women that are unemployed in comparison to men, which could be due to many factors. Also, in comparison to people below the poverty line outside of capital cities to those who were, it was 13.1% to 12.6%. This relates to unemployment rate, because people who are accepting social security usually have no job, and depending on the country, have to be actively looking for a job. Since unemployment rate is considered an important economic indicator of how the economy is behaving, it may cause people to panic or be more cautious in investing. This also relates to the GDP, because when people aren't working, they aren't contributing to the economy, which is potential GDP that is lost. And if GDP is low, it may also be a sign of a bad economy.
Foreign aid/grants:
The places where Australia sends foreign aid are mainly to the Asia Pacific, however they also have some aid to Africa, the Middle East, and even Colombia and Peru. I found it particularly interesting that Australia provides foreign aid to North Korea. Of course, the aid is only humanitarian, and is only for prolonged emergencies and natural disasters.
Foreign aid helps improve the GDP overall, because the government spending can then be calculated into the GDP if the method used to calculate GDP is the expenditure method. However, it can also, conversely, hurt the GDP if it is calculated using the income method. Because then the government has less income, and may make the GDP seem smaller than it really is.
The Australian government also provides a wide variety of grants for small businesses and start-ups. These also help encourage competition, seen as one of the regulating forces of the free market. Also, since a large amount of small businesses are sole proprietorships, or a business owned and managed by one individual, it also helps the individual to raise capital to start the business.
Foreign aid helps improve the GDP overall, because the government spending can then be calculated into the GDP if the method used to calculate GDP is the expenditure method. However, it can also, conversely, hurt the GDP if it is calculated using the income method. Because then the government has less income, and may make the GDP seem smaller than it really is.
The Australian government also provides a wide variety of grants for small businesses and start-ups. These also help encourage competition, seen as one of the regulating forces of the free market. Also, since a large amount of small businesses are sole proprietorships, or a business owned and managed by one individual, it also helps the individual to raise capital to start the business.
Taxation policy:
Australian tax policy is to keep the country from reaching a peak and only go up steadily by having a tax file number (TFN). A TFN is for every Australian resident to make sure that for their job or investment is taxed properly and doesn't cheat the economy and lower the GDP. Since this is in play in the business cycle, it helps it stay constant and helps the economy. The way individual tax rate is calculated is rather interesting. Instead of having a percentage rate like in the US, cents are taken for every dollar after a fixed amount is taken. And taxes for foreigners who work in Australia for at least a full year are different, with slightly higher prices. For residents, $0-18,200 AUD has no tax charged. $18,201-37,000 AUD is charged 19 cents for every dollar over $18,200. From $37,001-80,000 AUD, a flat rate of $3,572 is charged, with 32.5 cents charged for every dollar over $37,000. From $80,001-180,000 AUD, a flat rate of $17,547 is charged with 37 cents for every dollar over $80,000. For 180,000 AUD and above, $54,547 AUD plus 45 cents for every dollar over $180,000. Foreigners are charged a bit more, at some higher rates. $0-80,000 AUD for 32.5 cents per dollar.
Economic sectors:
Australia's main sectors are agriculture and mineral resources. For their mineral resources they manly export them for money, raising the GDP. The metals are iron, aluminum and aluminum ore. For agriculture they mainly grow it for themselves but some of it goes to whoever will buy it.
Stock exchange/bANKING SYSTEM:
There are 3 major stock exchanges in Australia. These three are the Australian Securities Exchange (ASX), the National Stock Exchange of Australia (NSX), and Chi-X Australia.
The ASX is the biggest of the three, with the price of the share multiplied by the number of shares outstanding, of a value of 1.46 trillion Australian dollars. It operates both the Australian Stock Exchange and the Sydney Futures Exchange, thus its name is the Australian Securities Exchange and not the more direct Australian Stock Exchange. It also provides market data, and related information, such as stock market announcements and market education to the public.
The NSX is the second largest of the three exchanges, with a market cap of 2 billion Australian dollars. However, the stock exchange caters towards small and medium businesses, and has approximately 70 firms listed. The stock exchange is owned by NSX Limited, which is probably ironically, listed on the ASX. The NSX also operates SIM Venture Securities Exchange Limited.
Chi-X Australia is one of the newer emerging stock exchanges in Australia. It offers new order types and potential lower costs. Chi-X Australia is owned by Chi-X Global, which also operates Chi-X Canada and Chi-X Japan. It was once entirely owned by the Nomura Group, but since then, five additional financial institutions have invested in the company.
Stock exchanges can be related to economic indicators, because shares are really a corporation selling its shares to the public. A corporation is a legal entity, or being, owned by stockholders, who each can lose their investment, or have limited liability. When people can buy more, then they will be more willing to invest in companies, and when companies have more money, they will be able to use that money to maximize efficiency, and produce new innovative ideas (hopefully).
The stock exchange system is quite similar to the US's, excluding Chi-X, since there is no stock exchange in the United States that has international branches like Chi-X. Like the NSX and the ASX, the United States has the New York Stock Exchange (NYSE), and Nasdaq. Nasdaq tends to attract smaller companies with less money, while the NYSE tends to have more established firms that are generally more stable than the ones on Nasdaq. Also, one of the biggest differences between the NYSE and Nasdaq is that the NYSE takes place in a physical location, while the Nasdaq is a network on which traders trade.
The banking system is much like the American banking system. You can make transaction accounts, savings accounts, and joint accounts. You can also create direct debits, which are similar to automatic payments from your bank account. One unique feature that is not quite here in the United States yet is contactless cards. Transactions under 100 Australian dollars can be made by the touch or wave of a card. These transactions work by communicating with the contactless checkout terminal using the radio antenna inside of the card. The banking system has gone through many reforms in recent years to make consumers get a better deal, let smaller competitors become a safe and competitive alternatives to major banks, and assure the long-term safety and sustainability of the financial system so it can provide reasonably priced credit to Australian households and small businesses.
The ASX is the biggest of the three, with the price of the share multiplied by the number of shares outstanding, of a value of 1.46 trillion Australian dollars. It operates both the Australian Stock Exchange and the Sydney Futures Exchange, thus its name is the Australian Securities Exchange and not the more direct Australian Stock Exchange. It also provides market data, and related information, such as stock market announcements and market education to the public.
The NSX is the second largest of the three exchanges, with a market cap of 2 billion Australian dollars. However, the stock exchange caters towards small and medium businesses, and has approximately 70 firms listed. The stock exchange is owned by NSX Limited, which is probably ironically, listed on the ASX. The NSX also operates SIM Venture Securities Exchange Limited.
Chi-X Australia is one of the newer emerging stock exchanges in Australia. It offers new order types and potential lower costs. Chi-X Australia is owned by Chi-X Global, which also operates Chi-X Canada and Chi-X Japan. It was once entirely owned by the Nomura Group, but since then, five additional financial institutions have invested in the company.
Stock exchanges can be related to economic indicators, because shares are really a corporation selling its shares to the public. A corporation is a legal entity, or being, owned by stockholders, who each can lose their investment, or have limited liability. When people can buy more, then they will be more willing to invest in companies, and when companies have more money, they will be able to use that money to maximize efficiency, and produce new innovative ideas (hopefully).
The stock exchange system is quite similar to the US's, excluding Chi-X, since there is no stock exchange in the United States that has international branches like Chi-X. Like the NSX and the ASX, the United States has the New York Stock Exchange (NYSE), and Nasdaq. Nasdaq tends to attract smaller companies with less money, while the NYSE tends to have more established firms that are generally more stable than the ones on Nasdaq. Also, one of the biggest differences between the NYSE and Nasdaq is that the NYSE takes place in a physical location, while the Nasdaq is a network on which traders trade.
The banking system is much like the American banking system. You can make transaction accounts, savings accounts, and joint accounts. You can also create direct debits, which are similar to automatic payments from your bank account. One unique feature that is not quite here in the United States yet is contactless cards. Transactions under 100 Australian dollars can be made by the touch or wave of a card. These transactions work by communicating with the contactless checkout terminal using the radio antenna inside of the card. The banking system has gone through many reforms in recent years to make consumers get a better deal, let smaller competitors become a safe and competitive alternatives to major banks, and assure the long-term safety and sustainability of the financial system so it can provide reasonably priced credit to Australian households and small businesses.
Natural resources:
Some of Australia's resources are natural gas and minerals. They use these resources for exporting and their own personal use increasing their GDP. Some of the minerals are aluminum and iron, which help make machinery to increase capital and increase their working proficiency.
Environmental issues:
One of Australia's issues is deforestation, which is the loss of forests. This will cause less wood for building or for any other purpose decreasing the GDP and the capital. Another issue is agriculture clearing a animals overgrazing, which means that the plants are dying or are gone and there is no vegetation. Along with capital other issues are that Australia is facing to deal with not enough food for thei
Literacy rate and Education Expenditures (education section):
According to the UNESCO, the adult literacy rate, defined as 15 years old and over, can write and read is 98%. 98% for female and 99% for male. The youth literacy rate, defined of 15-24 years old, is a bit more positive, at a rate of 99%. The access to primary education is not quite as well, at a total net intake rate of 86.4%. However, the population of Australia is also has a smaller population than the United States', so it may seem to have a higher literacy rate. However, impressively the United States also has a literacy rate of 99% in total, and 99% for both male and female. This can help improve economic efficiency, an economic goal, because with more educated people, companies can hire more skilled workers, providing them with more human capital, the knowledge and skills a worker gains through education and experience.
The Australian government has spent 79, 564 million Australian dollars in 2012-2013, with the largest portion spent by state and local governments. The biggest portion of this money has been spent on primary and secondary education. The biggest expense is employee expenses. This shows that Australia care a lot about education, especially the fundamental building blocks.
The Australian government has spent 79, 564 million Australian dollars in 2012-2013, with the largest portion spent by state and local governments. The biggest portion of this money has been spent on primary and secondary education. The biggest expense is employee expenses. This shows that Australia care a lot about education, especially the fundamental building blocks.
Consumption section:
The idea of consumption section, is what a country consumes. The section that I chose was petroleum consumption, because many countries seem to depend on petroleum these days.
Petroleum consumption consumption in Australia has been steadily on the rise. In 1980, the total petroleum consumption was 594 thousand barrels per day. In the most recent data I could find, 2012, 1126.07 thousand barrels per day were consumed in total petroleum consumption. The graph is kind of stable, with some sudden increases along the way, and some dips. The biggest noticeable short period increase is from 2007 to 2008, from 976.44 thousand barrels per day to 1054.72 thousand barrels per day in 2008.
Petroleum consumption consumption in Australia has been steadily on the rise. In 1980, the total petroleum consumption was 594 thousand barrels per day. In the most recent data I could find, 2012, 1126.07 thousand barrels per day were consumed in total petroleum consumption. The graph is kind of stable, with some sudden increases along the way, and some dips. The biggest noticeable short period increase is from 2007 to 2008, from 976.44 thousand barrels per day to 1054.72 thousand barrels per day in 2008.
This relates to GDP, because as individuals, businesses, or government spend more money on petroleum, it will lead to a higher GDP. Despite how bad dependency on petroleum may be seen, it does often times allow for economic growth.
Petroleum also relates to opportunity cost, since instead of using clean sources, petroleum is used, which creates the opportunity cost of using renewable sources.. Also, due to new and more efficient renewable power generation, people are becoming more and more reliant renewable energy because it is less likely to run out, and also because they usually result in a lot less pollution.
Future trends:
Australia's future trends will be a continuing growth of economy. And it has been increasing tourism increasing the GDP and the population for those who decide to live there. While some trends are to try and increase farming to increase the agriculture. 2, and not even close to enough.
News in Australia:
One article that I found talked about the raising prices of houses in Sydney. The article mentioned that the median price of houses in Sydney was 750,000 AUD, however, in the article, they mentioned that a price of a house could vary from 450,000 AUD to 4 million AUD depending on region. This price difference greatly increases the gaps between citizens in different regions of Sydney. This price difference for houses pushes first home buyers out of the market and investors into the market, according to the article. The Mosman area, located close to the shoreline, is the most expensive, with houses ranging from 2 million AUD to 4 million AUD. A big factor in determining the price, according to the article, is how close it is to a beach, and/or water views.
This relates to standard of living, or the level of wealth, comfort, material of goods and services to a certain socioeconomic class in a certain geographic region, because as the prices of the houses become higher, they become a bigger proportion of people's income, and easily divides the richer people from the poorer people.
It also relates to the GDP, because if less people are able to afford houses, the GDP will fall, as well as the real estate market, because less people will be paying them to buy houses or look for houses. This will effect the country's economic growth, and long term may cause a recession. Either way, regardless if the GDP is calculated through the expenditure or income method, the GDP will drop if people are unable to pay for more expensive houses.
This relates to standard of living, or the level of wealth, comfort, material of goods and services to a certain socioeconomic class in a certain geographic region, because as the prices of the houses become higher, they become a bigger proportion of people's income, and easily divides the richer people from the poorer people.
It also relates to the GDP, because if less people are able to afford houses, the GDP will fall, as well as the real estate market, because less people will be paying them to buy houses or look for houses. This will effect the country's economic growth, and long term may cause a recession. Either way, regardless if the GDP is calculated through the expenditure or income method, the GDP will drop if people are unable to pay for more expensive houses.
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http://www.ezilon.com/maps/oceania/australia-road-maps.html
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http://www.thefishsite.com/articles/contents/09-20-11Daff%20p%2035.1.gif
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Picture URLs:
http://www.canberratimes.com.au/act-news/canberra-wins-liveability-poll-but-housing-still-a-concern-20140302-33uah.html
http://www.ezilon.com/maps/oceania/australia-road-maps.html
http://www.dfat.gov.au/trade/export_review/key_issues.html
http://www.thefishsite.com/articles/contents/09-20-11Daff%20p%2035.1.gif
Pictures MLA Cited:
Admin. "Sydney Opera House." Inaresort.com. Resort, 23 Jan. 2013. Web. 01 June 2014.
"An Epic Australian Bust." Seekingalpha.com. Seeking Alpha, 27 Feb. 2012. Web. 30 May 2014.
"An Update about Australia.gov.au." Department of Finance. Australian Government, 12 Mar. 2014. Web. 30 May 2014.
Battellino, Ric. "Twenty Years of Growth." Rba.gov.au. Reserve Bank of Australia, 20 Aug. 2010. Web. 28 May 2014.
Buckland, Kevin. "Aussie Pares Weekly Gain versus Dollar as RBA Rate-cut Bets Rise." Live Mint. The Wall Street Journal, 12 July 2013. Web. 30 May 2014.
Hernandez, Vittorio. "Australian Stock Market Report – Midday 1/22/14."Ibtimes.com. International Business Times, 22 Jan. 2014. Web. 01 June 2014.
"Parliamentary Budget Office." Aph.gov.au. Parliament of Australia. Web. 30 May 2014.