Comparison of the Economic Growth of UK, US, and Australia (Essay Sample)

MACROECONOMICS ASSIGNMENT: MONEY AND FINANCE
EXAMINATION OF ECONOMIC GROWTH OF UK, US AND AUSTRARIA FOR THE PAST 20 YEARS EXPLAINING WHY ECONOMIC GROWTH MAY DIFFER ACROSS THE COUNTRIES
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INTRODUCTION
Economic growth has been reviewed widely in literature. It has been referred to addition, or increase in goods and services. Adding a time measure, economic (EG) of a country is seen as the increase in goods and services per head within a given period of time (Les and David 1995). The increased capacity of a country to make production has also been seen as EG. According to Robert (1999) EG is mainly driven by aggregate demand (AD) and aggregate supply (AS). Thus economists have come to a common agreement that EG is mainly driven by human capacity, physical capacity, natural resources endowment, and technological advances. Since EG has been seen to foster development, it has been stipulated and encoded through; employment levels of a country, inflation rate, interest rates, wage, retail market operations, real estate and property development, industrial production.
Different organisations including World Bank has been in the outlook to measuring EG of different countries, they have thus made use of real gross domestic product (GDP), gross national income (GNI), and other have used quarter GDP or GNI (Federico 2014).
Measurement of economic growth
EG is measure of increase of goods and services within a given period without consideration for inflation. Looking at it EG leads to increased business profits, as well as production capital. All countries thus are in the outlook for positive EG since as more goods are produce, there is more employment. Consequently, there is more disposable income and increased consumer purchasing power which leads to overall developments (Ian 2012).
Making use of GDP takes into account all countries production. All economic output of a country. Therefore, all that is produced for sale is include in measurement. The method however does not separate production mean for domestic or overseas sales (Stephen 2000). The methods includes exports as they are produced from within, and lessens imports as well as goods in transit and those used as raw material for manufacturing. Thus it looks at the end product.
Thus EG is seen in phases and thus well depicted within a period of time. EG is thus observed through the business cycle with estimates looking for