Question

a) Go to the Australian Bureau of Statistics website and find the latest (December 2018) figures for output. In particular, find the percentage change in Trend GDP from the September Quarter 2018 to December Quarter 2018; and the December Quarter 2017 to December Quarter 2018; and the percentage change in Seasonally Adjusted GDP over the same two periods. b) Do the same for the December 2017 figures. (1 mark) c) Explain whether, based on the GDP data and all else equal, you would prefer to be incumbent Government running for re-election this time last year or now. d) Now find the ABS data for the Consumer Price Index, specifically report the figures for the December 2018 and December 2017 All Groups CPI and the Seasonally Adjusted CPI. e) What are the categories that experienced the most significant price rises and falls? Discuss whether, given your usual consumption bundle, you were likely better or worse off in December 2018 compared to September 2018.

Answer 1

Percentage change in GDP from Dec2018 has been 0.2% from Sep2018 while seasonally adjusted change is 1.2%

Percentage change in GDP from Dec2017 to Dec2018 has been 2.8% while seasonally adjusted change is 3.7%.

There is no strong case for running an election campaign as incumbent government party as the government in power has demonstrated 3.7% growth in GDP year on year seasonally adjusted which is great number considering global growth @1% year on year.

All groups Australia CPI index in dec2017 is 112.1 while season adjusted CPI index Australia is 108.4

All groups Australia CPI index in dec2018 is 114.1 while seasonally adjusted CPI index Australia is 110.2

Categories like cereal products saw highest price falls while categories like lamb and goat saw highest price rise.

Taking usual consumption bundle the seasonally adjusted CPI over all products taken in basket has seen marginal rise and hence consumers will be worse off because they shall pay higher prices.