The economic problem is the problem of how to satisfy our unlimited wants with our limited resources. Different situations affect different economies. That includes the size of the economy and economic growth, employment and unemployment, quality of life, environmental quality and the role of the government.
Economic growth
Economic growth involves a boost in the quantity of goods and services that an economy can manufacture over a period of time, and is measured as a percentage increase in the value of goods and services produced in a country in one year. There are both positive and negative effects that come out of economic growth, mainly in relation to living standards, unemployment, inflation, external stability, income distribution and the environment. Recently Australia's economic growth performance has been promising, considerably better than most countries in this unstable time in global affairs.
In the late 1990's the RBA had successfully maintained a sustainable rate of economic growth. Their target was between 3-5 % in which they achieved. This was mainly due to their responsible and carefully planned monetary policy that the RBA carried out over these years that has prevented large fluctuations in the Business cycle. Though the economy and hence, economic growth has experienced a considerable downturn. This is due to a continuing weakness in the international economy.
In real terms, America's economy grew by 3.7 percent in the third quarter, faster than most other developed economies around the globe and faster than the historical U.S. growth rate, since 1970, of 3.2 percent. Chart 1 provides a quarter-by-quarter account of U.S. economic growth since 1992.
Economic news reflects the policy choices made years ago by Congress and the ...