How to Calculate the Coefficient of Correlation

There are many questions to ask when looking at a scatterplot. One of the most common is how well does a straight line approximate the data? To help answer this there is a descriptive statistic called the correlation coefficient. We will see how to calculate this statistic. The Correlation Coefficient The correlation coefficient, denoted by r tells us how closely data in a scatterplot fall along a straight line. The closer that the absolute value of r is to one, the better that the data are described by a linear equation. If r 1 or r -1 then the data set is perfectly aligned. Data sets with values of r close to zero show little to no straight-line relationship. Due to the lengthy calculations, it is best to calculate r with the use of a calculator or statistical software. However, it is always a worthwhile endeavor to know what your calculator is doing when it is calculating. What follows is a process for calculating the correlation coefficient mainly by hand, with a calculator used for the routine arithmetic steps. Steps for Calculating r We will begin by listing the steps to the calculation of the correlation coefficient. The data we are working with are paired data, each pair of which will be denoted by (xi,yi). We begin with a few preliminary calculations. The quantities from these calculations will be used in subsequent steps of our calculation of r:Calculate x̄, the mean of all of the first coordinates of the data xi.Calculate ȳ, the mean of all of the second coordinates of the data yi.Calculate s x the sample standard deviation of all of the first coordinates of the data xi.Calculate s y the sample standard deviation of all of the second coordinates of the data yi.Use the formula (zx)i (xi – x̄) / s x and calculate a standardized value for each xi.Use the formula (zy)i (yi – ȳ) / s y and calculate a standardized value for each yi.Multiply corresponding standardized values: (zx)i(zy)iAdd the products from the last step together.Divide the sum from the previous step by n – 1, where n is the total number of points in our set of paired data. The result of all of this is the correlation coefficient r. This process is not hard, and each step is fairly routine, but the collection of all of these steps is quite involved. The calculation of the standard deviation is tedious enough on its own. But the calculation of the correlation coefficient involves not only two standard deviations, but a multitude of other operations. An Example To see exactly how the value of r is obtained we look at an example. Again, it is important to note that for practical applications we would want to use our calculator or statistical software to calculate r for us. We begin with a listing of paired data: (1, 1), (2, 3), (4, 5), (5,7). The mean of the x values, the mean of 1, 2, 4, and 5 is x̄ 3. We also have that ȳ 4. The standard deviation of the x values is sx 1.83 and sy 2.58. The table below summarizes the other calculations needed for r. The sum of the products in the rightmost column is 2.969848. Since there are a total of four points and 4 – 1 3, we divide the sum of the products by 3. This gives us a correlation coefficient of r 2.969848/3 0.989949. Table for Example of Calculation of Correlation Coefficient x y zx zy zxzy 1 1 -1.09544503 -1.161894958 1.272792057 2 3 -0.547722515 -0.387298319 0.212132009 4 5 0.547722515 0.387298319 0.212132009 5 7 1.09544503 1.161894958 1.272792057

Heart of Darkness written by Joseph Conrad is dramatic...

Heart of Darkness written by Joseph Conrad is dramatic tale of an arduous trek into the darkest part of Africa at the turn of the twentieth century. The story follows the protagonist Marlow, an English marine merchant, as he travels through the African jungle up the Congo river in search for a mysterious man named Kurtz. Through Marlows narration, Conrad provides a searing indictment of European colonial exploitation inflicted upon African natives. Through his use of irony, characters, and symbolism in the novel, Conrad aims to unveil the underlying horrors of colonialism. By shedding light on the brutality of colonialism in Heart of Darkness, Conrad shows that European values have been irrevocably eclipsed by darkness. The true†¦show more content†¦Another great irony in the novel is the attitude Marlow ultimately adopts towards Kurtz. Marlows beginning impressions from the various reports he has heard about Kurtz are very adverse. Yet, after the events have taken pla ce, Marlow becomes an admirer of Kurtz harboring strong feelings of respect and friendship. The reader would expect Marlow to continue to react to Kurtz in the same adverse manner as the start of the novel, but the opposite occurs. Marlow becomes so attached to Kurtz that he uses all his powers of persuasion to bring Kurtz back to the ship. Marlow then tells the reader that he could â€Å"not betray Mr. Kurtz—it was ordered I should never betray him—it was written I should be loyal to the nightmare of my choice† (94). Thus Marlow has now become almost a follower of Kurtz knowing the full extent of the evil that prevails in Kurtz. Evidently, Marlows own primitive instinct have come to the surface resulting in a bond between Kurtz and himself. So another civilized European man who is an embodiment of reason and sanity has fallen victim to the influences of savagery. In Heart of Darkness, Conrad only gives a few characters name in the novella illustrating the dehumanization of mankind in the Congo. With the exception of Marlow and Kurtz, all the European characters posses titles reflecting their careers as their given names; this defines their entire personality and existence to their chosen occupation. This is a reflection on the EuropeanShow MoreRelatedThe Heart Of Heart And Heart1569 Words   |  7 PagesFundamentally, the heart works as a pump for blood to the various parts of the human body. It is made up of four chambers with two sections, upper and lower, on each side. The heart’s right side pumps blood to the lungs to be oxygenated then the blood returns to the heart’s left side for pumping into the body’s circulatory system that consists of blood vessels that transport the blood through all body organs. Heart failure does not necessarily translate to the complete non-performance of the heart. That isRead MoreThe Heart Of Heart Attack1510 Words   |  7 Pages The heart is the most essential biologic al structure in the body system; nobody can live without the heart. The major role of the heart is to pump blood throughout all the organs in the body; blood transported by the heart carries oxygen and nutrients around the body and removes all the dangerous wastes. We need oxygen to breath and nutrient to maintain our health. All muscles in the heart need oxygen to function properly. When there is a restriction of blood flow to the heart, the coronaryRead MoreThe Heart Of Heart Disease906 Words   |  4 PagesBased off of the case study regarding a 47 year old man who has recently been diagnosed with a heart disease known as CAD; I decided to further my research on this topic because it was intriguing to discover all heart diseases including coronary heart disease are taking the lives of countless individuals each year in our nation. 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Heart failure is a condition where the heart does not pump as efficiently; therefore, it does not meet the needs of the body. There is a growing number of heart failure patients each year. â€Å"More than 300,000 deaths per year are attributed to heart failure, and the annual cost to manage these patients is close to $40 billion† (Mancini Colombo, 2 015, p. 2542). Since the heart failure population is steadily growing

Prostitution And Its Effect On Society - 886 Words

â€Å"In the United States alone, an estimated $14 billion is generated in annualrevenue from the sex-for-sale industry. Worldwide revenue from the commercial sex trade industry is estimated at more than $100 billion each year,† says the literary criminologist R. Barri Flowers. Prostitution is described as the act of having sexual intercourse in exchange of money or basically commerce of sex. People engaged in this type of activity are called prostitutes or simply sex workers. In today’s societies man and woman can both be sex workers although woman have been predominantly and pejoratively called prostitute. However, prostitution criminalization or decriminalization has been raising debates in many societies. One may argue that outlawing sex workers takes away the liberty of adults to choose how to live their sexual lives and the right of their own body. However, if human sexuality is reduced to something temporary, material and consumable instead of precious, sacred, a nd wonderful then the all marriage and family structure will crumble and fall, and human being itself will be reduced to an object. Prostitution should be outlawed not only for its moral wrongness but also first for the harms it imposes to those vulnerable workingon the sex industry. These long term harms range from a life of fear, economic exploitation, aggression, and psychological impairment. A libertarian may argue that prostitution is a business transaction between adults. This argument is too simplisticShow MoreRelatedProstitution And Its Effect On Society1552 Words   |  7 Pagesthe â€Å"victimless crime† of prostitution between consenting adults be free from governmental interference? To discover the answer to this question, I will be doing some research on this topic to further explicate on the situation at hand. 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Structural Cause Of Global Financial Crisis - MyAssignmenthelp.com

Question: Discuss about the Structural Cause Of Global Financial Crisis. Answer: Introduction The purpose of this task is to provide a brief overview about the cause and impact of the Global Financial Crisis which occurred in the year 2008. The economic crisis adversely impacted the state of many nations due to which their economic growth became unstable. Further more details about the task are discussed below: Significance of Global Financial Crisis (2008) The financial crisis of 2007-2008 is also commonly known as global financial crisis. This crisis occurred in the year 2007 in the subprime mortgage market of US, this market was fully blown out with the collapse of Lehman Brothers investment bank. Further many reason were concluded for the occurrence of this event like, the US Senates Levin-Coburn Report said that this event happened because of high risk, complex financial product; secrecy in conflicts over interests and lastly the failure of regulatory bodies to regulate the activities accordingly (Scott, 2010). The Financial Crisis Inquiry commission said that the crisis was avoidable and it was a cause of failure of financial bodies in regulating and supervising the market. But the most significant reason of the subprime mortgage crisis was the imbalance in international and increase in household loan and real estate bubble as well. Further it shall be noted that many factor collectively affected the growth of the subprime mortgag e market in US and resulted in bursting out of the whole event (Crotty, 2009). The Community Reinvestment Act (CRA), a law defined by the US government assisted the low and moderate income people to get mortgage loans. Resulting to which, many subprime loans were bundled together and sold to common people to help them. Thus, this type of ending initiated by banks and government led the government to face a glut of risky lending. Further the lax regulations also led to negligence of many acts initiated in the environment. Subsequently all these activities combined to result in the financial crisis worldwide. This crisis is regarded as the worst crisis after Great Depression of 1930 (Shiller, 2012). Source: (https://www.globalissues.org/article/768/global-financial-crisis) Examples of financial and economic crisis worldwide Not as big and devastating as Financial Crisis of 2007-2008, but there were many of economic crisis which poorly affected the state of many countries. Some of them are discussed below: Irish banking Crisis of 2008: The post 2008 Irish Banking Crisis was a crisis which was occurred because of Great Recession. Many financial institutions faced insolvency after the occurrence of great depression worldwide. The Irish government in this respect activated 64 billion euro bank bailout which further led to a number of revelations about business person and banks affairs. This ultimately added to the deepening of the recession in the country. The case in the Irish banking is similar to the global financial crisis of 2007-2008. The government and the banking regulation gave ease to the people ad organizations to borrow loan from them and the lax supervision increased the credit concentration risk (Lane, 2011). Thus it shall be noted that the organization faced this financial crisis because of the irregularities in their baking system along with increasing demand of loan in the market. Increase in property price in the country Ireland showed that the economy is overheating and will result in burst out soon. Basel framework also showed the growth and the loss of the country in certain areas. The pillar one of framework explained the growth in bonding funding and strong capital adequacy ratio as well. And the pillar two explained the supervisory process of the country. Further the banking regulation and lax supervision act as a major threat for the whole nation and the cause of crisis as well (rba, 2009). Increase in real public debt since 2007 Source: (https://trueeconomics.blogspot.in/2011/03/) 201516 Chinese stock market turbulence: The Chinese stock market started with the popping of the stock market bubble in 2015 which ended in 2016. A-shares listed in the Shanghai stock market were lost within a short span of one month. Later within 3 week the stock markets of the country fell by 30 per cent as more than 1400 listed companies filed trading halt so as to overcome the loss faced earlier and prevent themselves from future losses as well (Hong, 2016). Later in the IMF (International Monetary Fund) annual meeting it was stated that turbulence in the stock market of China can trigger the new financial crisis worldwide. Further it shall be noted that Chinas stock market is one of the highest performing stock market worldwide but the country faced such turbulence because of aggressive trading at the stock market. The shares listed at the stock market were heavily overvalued in the previous weeks due to which the value of stock market also rose. Soon after which the bullish mar ket of the company turned in bearish as the traders started selling unsustainable stocks due to which the market became frothy. Resulting to which the economy of the country dropped because it was mainly based on the Shanghai stock market only (Pu, Rongbing, 2009). Possible cause of financial crisis Many factors can be linked to the global financial crisis and its effects in the market. Some of these causes are discussed below: Increase in keeping private debt level: In order to conquer the stock market crash and increase the economic value, the Federal Reserve eased the credit availability and reduced the interest rates down to the level which was not expected. The low interest rates on credit increased the debt ratio in the economy, among which most of the debts were obtained by people in order to produce household property (Claessens, et. al., 2010). Resulting to which as the people acquired debts to purchase houses due to which subsequently the prices of property increased along with increase in the stock market as well. Later unemployment and less income in hand of people to pay off the mortgage made it difficult for people to pay off debts due to which the property market rose along with crash in banking along with stock market (Rudd, 2009). Lack of transparency and independence in financial modeling: Another cause of Global Financial Crisis can be the lack of transparency and incompetency of the government to initiate the model in the market. The models used by the financial system of the countries were not effective enough to lift up the economy due to which it poorly affected the state of the countries. Less transparency further resulted in increase in complexity of the system. The credit rating agencies and the bank regulators both relied on the accountability and authenticity of the model to perform in the environment but negative effects were shown in the environment (Surez-Lled, 2011). Government lax supervision: It shall be regarded as the biggest cause of the global financial crisis which occurred in the year 2007-2008. As the governments of the countries ignored the activities implemented in the environment by the banking regulations and stock market. Due to which the crisis occurred. Apart from this, it shall be noted that the government always kept the regulation loose due to which the credit risk in the country increased. Thus, lenient regulations of the government can be regarded as a cause of the crisis (Cheung, Fung, Tsai, 2010). Source: (https://static.treasury.gov.au/uploads/sites/1/2017/06/Tas_Economic_Forum-5.jpeg) Chances of occurrence of GFC in future There are possibilities that the crisis might repeat itself because of activities initiated by the government and the market as well. The government policies are encouraging the granting of mortgages to non-credit worthy homebuyers. As mentioned above, it was one of the biggest causes due to which financial crisis occurred worldwide and still the government is initiating similar activities in the market. Apart from that lack of transparency in the market makes it difficult for the regulatory bodies to understand the depth of the issue due to which such processes rotten the environment resulting in crisis worldwide (Fidrmuc, Korhonen, 2010). Scale and impact of GFC in different countries The countries worldwide were highly impacted with the global financial crisis. The below-mentioned are some of the countries which were affected by the global financial crisis. Nepal The financial crisis in Nepal affected in such a way that it reduced the global output by 0.75per cent. The commercial banks were poorly troubled as the effect of this economy. As the country Nepal has largely insulated from the toxic assets of big investments due to which the economy of the country was indirectly affected resulting in decrease in revenue of the government (Christian, 2009). Global slowdown and recession was attracted by the Western economies, this also affected the Nepali services industry which was contributing 50.9 per cent to the GDP. Travel plans of the tourist were canceled; corporate donors limited the amount of donations in the country and manufacturing sector also suffered due to the reduction export quantity. Thus, these were the major impacts of GFC in Nepal. Source: (rba, 2009) Australia The financial system of the country faced a shock after the global financial crisis as the banks of the country has solid profits till the last year but with the occurrence of this crisis all the reserves of the country vanished. Just like many other countries fall in the property and share market abruptly declined the personal wealth of native of Australia. Due to which subsequently the deficits and loans increased in the country which destructed the capitals of many renowned banks as well. Subsequently external trade started reduced which resulted in unemployment less export as well. The gross domestic product reduced and unemployment increased (Chang, et. al., 2013). Actual and proposed reforms taken for the global financial crisis The following are the reforms which are and shall be initiated worldwide: Adoption of Basel III capital requirements: This process will help the governments to control the globally systemically important financial institutions. This has implemented strict regulations on the market. Liquidity regulation: the governments have levied regulation in the liquidity management. It reduced the flow of cash in environment as the banks started holding more liquid cash to meet the requirement of repo transaction (Davis, 2018). Proper credit rating: Adequate credit rating was initiated so as to accurately know about the value of the stock which the investor is going to purchase. Apart from that protection of the interest of the investor was also managed through various governmental measures. Conclusion and Recommendation Thus in the limelight of above mentioned events the fact that shall be noted that Global Financial crisis is one of the biggest financial crisis of all time which hampered the economic growth of many countries. The task discusses about the crisis and its causes due to which it occurred. There are many reasons of this crisis which shall not be repeated again to avoid occurrence of this event again. The report adequately discusses about the requirements of the task. The following shall be recommended to the governments so as to cure themselves from such event of crisis: The credit rating agencies shall adequately rate the shares and companies in the market. According to the authentic rating only people invest in the shares of the companies. This will increase the authenticity of the organizations due to which fraudery in the stock market will reduce. The government shall maintain control on the property and stock market, as these are the two major areas which were affected so the government shall control the activities happening in these areas. References Chang, S. S., Stuckler, D., Yip, P., Gunnell, D. (2013). Impact of 2008 global economic crisis on suicide: time trend study in 54 countries.Bmj,347, f5239. Cheung, W., Fung, S., Tsai, S. C. (2010). Global capital market interdependence and spillover effect of credit risk: evidence from the 20072009 global financial crisis.Applied Financial Economics,20(1-2), 85-103. Christian, P. (2009). Impact of the Economic Crisis and Increase in Food Prices on Child Mortality: Exploring Nutritional Pathways.The Journal of Nutrition,140(1), 177S-181S. Claessens, S., DellAriccia, G., Igan, D., Laeven, L. (2010). Cross-country experiences and policy implications from the global financial crisis.Economic Policy,25(62), 267-293. Crotty, J. (2009). Structural causes of the global financial crisis: a critical assessment of the new financial architecture.Cambridge journal of economics,33(4), 563-580. Davis, K. (2018). Regulatory Reform Post the Global Financial Crisis. Viewed on January 13, 2018 from https://www.apec.org.au/docs/11_con_gfc/regulatory%20reform%20post%20gfc-%20overview%20paper.pdf Fidrmuc, J., Korhonen, I. (2010). The impact of the global financial crisis on business cycles in Asian emerging economies.Journal of Asian Economics,21(3), 293-303. Hong, S., (2016). Chinas Crash Course: How a Turbulent Year Derailed Reform. Viewed on January 13, 2018 from https://www.wsj.com/articles/crash-course-how-chinas-turbulent-year-derailed-reform-1451714582 Lane, P. R. (2011). The irish crisis. Pu, G., Rongbing, H. (2009). Empirical Analysis of Sub-prime Mortgage Crisis's Impacts on Chinese Stock MarketBased on the Interaction between Chinese and American Stock Markets [J].Management Review,2, 65-71. rba., (2009). The Global Financial Crisis: Causes, Consequences and Countermeasures Viewed on January 13, 2018 from https://www.rba.gov.au/speeches/2009/sp-so-150409.html Rudd, K. (2009). The global financial crisis.Monthly, The, (Feb 2009), 20. Scott, H. J. (2010).Global financial crisis. Nova Science Publishers. Shiller, R. J. (2012).The subprime solution: how today's global financial crisis happened, and what to do about it. Princeton University Press. Surez-Lled, J. (2011). The black swan: the impact of the highly improbable.The Academy of Management Perspectives,25(2), 87-90.

Decoupling Global Environmental Pressure -Myassignmenthelp.Com

Question: Discuss About The Decoupling Global Environmental Pressure? Answer: Introduction Gross Domestic Product (GDP) is the most accurate way of measuring the growth rate of a country. It is the standard practice to calcite the GDP of a country and compares it with others to get the current economic position of that country. GDP is defined as the total sum of all the goods and services produced in the sovereignty of a particular country. This report is a discussion about the GDP rate of Australia dating back ten years from now. Since it covers all the aspects of economic system it becomes the most prominent indicator of the economy of a country. GDP data from Australia is displayed by National Accounts and is computed by Australian Bureau of Statistics which derives its data from System of National Accounts. GDP of Australia had a moderate growth rate before the economic crisis in 2008 (Al-mulali, Fereidouni and Sab 2013). Australia is known to be a free and robust market and has been like this since long. It has almost all the natural resources in abundance complemente d by its government which looks after its economyin a vibrant manner. Presence of efficient legal system and well-structured bureaucracy has led to the entrepreneurial development of Australia which has kept its economy in a healthy and prosperous state. Australia has always been the favorite destination for investors for establishing business ventures and investing in projects of all kinds.As Australian industries are open to foreign competition and the workforce available in the country is adequately skilled. Australian government has reduced their interference in many sectors of economy which has made way for foreign investors to take part in the development of its economy. In the following report discussion about the GDP and economic growth of Australia is done with complete analysis. Background Australia has a unique demography which has benefited it in more than one ways. It is a continent country surrounded by ocean from all its sides. It has been one of the most well-to-do economies in the entire Asia-Pacific region. It has expanded its economy continuously since last 25 years with some hindrances coming from the global financial crisis in 2008 (Plumb, Kent and Bishop 2013). But even in those troubled times it came out without much damage. Australian Labor Government has done some stimulus spending which has increased the deficit of the government. Australia is known to be a competitive global market with a stronghold on sectors such as technology, services and high-end products of manufacturing. Mining, livestock production and agriculture are the major modes of production in Australia and is done extensively. These factors are the major contributors to the economy of Australia and hence to its gross domestic product. In support of this, it has been observed that Austra lia has made significant economic progress in the last decade with the help of strong macroeconomic policy, strong development in commodity base and structural reforms of the government.The standard of living of the citizens of Australia has increased due to which economic challenges have tightened. Computation of Australian GDP There are three methods applied by the Australian Bureau of Statistics to calculate the GDP of Australia. The first one is approaches of income, thesecond one is the production and thelast one is expenditure. The approach for production contains all the values of produces and the difference between services rendered and values of goods produced in the country. It also adds the consumption and taxes on the goods produced such as mineral oil, tobacco and taxes imposed upon them (rba.gov.au 2017). Subsidies on the respective products are subtracted to give the final GDP. The expenditure method calculates the cost incurred on final consumption of the products which includes services as well as goods. This method also includes the final expenditure of households, total consumption expenditure of the government, formation of capital and next exports. Finally, the income method calculates the total revenue generated by the economy which includes compensation given by employees, thegross sur plus in operations, mixed-income derived from taxes after deducting the subsidies on imports and production. Rebalancing Commodity Prices with GDP Since the time of commodity boom, theeconomy of Australia is rebalancing itself with the help of currency depreciation and macroeconomic policies. Development of non-mining sectors of theeconomy has supported the growth to 3% and has even reduced the employment rate.Interest rates in the country have been low which has increased the aggregate demand and has allowed the investors to take risks (rba.gov.au 2017). This has resulted in price hikes in the mortgage and lending. RD As a Part of GDP To sustain the growth in production there should be synchronization in the innovation and the manufacturing sectors. The Australian government has created frameworks for research and development which is linked directly to the sectors of theeconomy which requires constant upgradation to stay in the global competition. Innovation needs reforms in the labor market and capital market to introduce new business models. With the collaboration of business strategies and RD, good amount of production growth can be achieved (rba.gov.au 2017). Australian governments National Innovation and Science Agenda has given anew dimension to this approach. Funding for all these activities has been incorporated in the GDP calculated for one financial year. This has helped the GDP and economy of Australia to become robust. Increase in Household Income and Wealth In the last decade, Australia has been suffering from unemployment due to the end of thecommodity boom. There have been rising concerns about economic inequality in the country. A gap has been created between the indigenous community of Australia and other citizens regarding the socio-economic status and income groups. GDP of Australia provides funding for innovation to develop the skillset of its underprivileged people (rba.gov.au 2017). Restructuring of the payment systems can reduce the gender wage gap which has also developed in the last decade. Macro-Economic Developments During the tough times of global economic crisis, the economy of Australia stood its ground due to its strong macroeconomic policy, buoyant financial system and high prices of thecommodity.The economic adjustments made in the super cycle of commodity prices has been a major part of the economic development in the last decade and has progressed very smoothly. Huge decline in the resource-sector has been observed from 9% of GDP to 4.5% of GDP and there has been a fall in resource sector employment as well as many large construction projects were in their completion phase (rba.gov.au 2017).The decline in global prices of coal and iron has been observed in 2011 due to which large investments were cut down by the investors to reduce the production costs. Subsequently, Australia suffered the risk of low growth and declining investments in private-sector due to doubtful investments and weak nature of global trade. To counterbalance these negative scenarios policy settings of flexible nature was deployed by the Australian government by setting up a helpful macroeconomic policy. The economy also faced depreciation in the exchange rates resulting in export decline and scarce revenue from tourism industry which makes a good chunk of the GDP of Australia. Wage growth and CPI (Consumer Price inflation) remained passive in the last decade. CPI was observed to be low from the expected target range of 2 to 3 percent as stated by the Reserve Bank of Australia (rba.gov.au 2017). Nominal wage-growth has also remained low due to the lackluster condition of the labor market which also included part-time jobs. This decline in nominal GDP growth rate has taken a toll on the financial goals of the government which were not reached as per expectations. In the last decade, Australia experienced a substantial current account deficit which was expected to reduce in the coming years. But this risk posed by current account deficit does not bother Australian economy as ahuge piece of foreign debt was dominated by Australian dollar and the remaining debt was hedged against the flu ctuations of the exchange rates.It was observed that Australian debt was increasing consistently however it was in the middle position when compared to other countries. Australian government issued only Australian dollar as the mode of exchange. Macro Prudential Measures On the account of risk taken by the households and banks, some measure was announced by the Australian Prudential Regulation Authority in relation to the lending practices for the households. Some measures concentrated on: Increase high-risk mortgage lending and to the extent to which they went in terms of prices. The speed of growth in lending for household made by an investor. The buffer of interest rate and loan services assessment. Investments in Non-Mining Sector A recovery phase was observed in the non-mining sector, increasing the hopes of job growth and economic consolidation.Some indicators showed that there waspurchase of new machinery and investments were made to make the employees work for more hours. Private business was observed to expand by 1.1% every quarter after experiencing about 12 quarters of negative growth in the private sector investment (rba.gov.au 2017). Tax, Fiscal Consolidation and Reforms on Expenditure When compared to other countries of South-East Asia, theburden of tax, expenditure on public services, and public debt were low in the last decade. After the financial crisis is 2008, Australian government authorities extended proper support to keep its economy out of recession. The federal deficit was observed to be 2.4% of GDP which is way below 4.2% as it was recorded before the crisis (Lee 2013).The fiscal policy makes of Australia made a balanced budget. State governments do not have much part in budget preparation as their stance in this matter is very small. It was mostly decided that target of 1% surplus in GDP growth rate will be targeted for each year to keep out the burden of debt-GDP ratio.The analysis suggested that surplus of 1% will close the gap of debt-GDP ratio to 25% in 2025-26 and will zero the gap till 2040 (McLean 2012). Personal income tax onsets are not routinelyincorporated in Australia.This gives leverage for flexiblealteration of the tax schedule to be a po rtion of structural reforms. Resilience in Banking The financial crisis of 2008 does not leave the banks of Australia in much troubled waters but attracted tighter regulations and practices.Banks changed their course of business from lending in short-term towards deposits (rba.gov.au 2017). According to the Murray Inquiry capital ratios had reached their lending limits as prescribed by the banking regulators. The Murray Inquiry highlighted that consolidation of bank pliability should also include new practices to curtail the expenses to the public on the occurrence of bank failure.The inquirysuggested the formation of a loss captivating and recapitalizationstructurein accordance with international scenarios to permitactualpurpose with reduced risk to taxpayer funds.The apprehensionofpower of banking directive has provoked efforts to recognize and removerewards for banks in regulatory procedures. Stance of Australian Economy The financial position of Australia ended up being strong as it is right now. According to the recent survey conducted cross-country, debt can reduce the output growth by 70%-90% of GDP. This means that since Australia has gross debt of 44%, it can take fiscal blows and can still stimulate growth (Kubiszewski, Jackson and Aylmer 2013). Australia could route a significantly larger deficit for some period of time without flirting with the limits recommended above.When the risks due to weak fiscal positionemerge, the government should dynamically use fiscal policy to provision the economy, as they did in 2008-09. Since trade in Australia is moderately regulated the value of exports and imports compute to about 41% of the Australian GDP. This leaves the authorities with a cushion to tackle any fluctuations in the GDP growth rate. Growth was largely based on the amalgamation of robust public investment and net exports, restrained public consumption and household depletion and soft busines s speculation. It could have happened that GDP could increase to the Reserve Bank of Australias forecast of yearly growth of around 2.75% by the end of each year, but it would need large spending practices from consumers which were not probable then. Current Scenario Australia is the only country in the group of OECD countries who have experienced the longest span of economic growth in spite of the threats made by Global Financial Crisis in 2008. Every other country in the group of 34 member countries in the Organization for Economic Co-operation and Development (OECD) have gone through at least one phase of two successive quarters of adverse GDP growth since 1991 (Dijk, Timbal and Viney 2013). Comparative growth statistics of Australia are based on the progress accounts collected by the OECD. These statsreflect that there are only two other countries who came close to corresponding Australias recent economic high the first one being Japan and the second is Netherlands. Economic supremacy of Australia over the past decade has been the cause of jealousy for many countries across the world. Australia cruised through the Global Economic Crisis of 2008 and outgrew every other peer country. Australia's real GDP developed by yearly average of 2.7% betw een the years 2012 and 2016 which was well ahead of the economic giants such as U.S and U.K (rba.gov.au 2017). As of today, the economy of Australiaisthe largestmixed market, with a GDP of AUD $1.69 trillion (Cecchetti and Kharroubi 2012). Australia is the second richest country in terms ofwealthper adult. There are a number of economic rating agencies such as Standard Poor who rate the economic condition of Australia as the most stable and favorable for establishing and expanding any kind of business. Being a mixed economy it has the potential to nurture and grow the business ventures (rba.gov.au 2017). Moreover, the government is also very supportive and is always concerned about the private players who are keen oninvesting in theAustralian economy. Such a smooth and congenial atmosphere for business is rewarded by strength and dynamism by large deep-pocketed investors that is why Australia has absorbed the crisis situation like a superior economy and has grown consistently since the last decade. Conclusion It can be concluded from the above report that Australia is endowed with all the natural resources which are necessary for a country to be self-sustainable and to prosper without the aid of any foreign entity. Australia is very rich in its business prospects and has a number of investors prying in the opportunity to invest in the economy of the country. To honor this feeling of trust in the economic competence of Australia, its government does a lot to keep the status-quo of the economy maintained. In the above report, economic growth and GDP growth of the country has been discussed in details. The report contains the analysis of policies applied by the Australian Government to tackle the global financial crisis and to come out of it without getting seriously inflicted by its damages. Australia has a robust service and banking sector which were likely to be affected by the crisis but it came out withflyingcolors.Australia is the only country in the group of some very resilient econom ies which has continued its streak of growth since last 25 years which is a very big thing to happen. As of now, Australia is in a much comfortable economic position with GDP growth rate more than superpower countries like the United States and the United Kingdom. Reference Al-mulali, U., Fereidouni, H.G., Lee, J.Y. and Sab, C.N.B.C., 2013. Examining the bi-directional long run relationship between renewable energy consumption and GDP growth.Renewable and Sustainable Energy Reviews,22, pp.209-222. Cecchetti, S.G. and Kharroubi, E., 2012. Reassessing the impact of finance on growth. 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