Australia's Nominal GDP and CPI from 1983 to 2022

Australia's Nominal GDP and CPI from 1983 to 2022

Executive Summary:This report mainly talks about how CPI serves various purposes, including wage adjustment for inflation and as a GDP deflator. It aids in comparing GDP over time, a measure of a countrys economic performance. Nominal GDP, measured with current prices, needs adjustment for accurate inter-period comparisons. This is done by deflating nominal GDP using CPI to obtain Real GDP. The adjusted series provides a consistent economic measure by accounting for inflations influence on GDP.

The main key ideas of this data set analysis are:

CPI has multiple practical applications, including adjusting wages for inflation and deflating GPD for accurate comparisons overtime.

Introduces the concept of using deflator to convert Nominal GDP into Real GDP, highlighting the formula for this adjustment.

It sets the context for a series of questions that involve analyzing time-series data on Australias Nominal GDP and CPI from 1983 to 2022 to understand their trends, relationships, and statistical properties.

Contents

TOC o "1-3" h z u 1.Executive Summary: PAGEREF _Toc143273696 h 12.Introduction: PAGEREF _Toc143273697 h 33.Nominal GDP Level Data From 1983 to 2022 PAGEREF _Toc143273698 h 43.1.Highest, Lowest, Median, and Mean of Nominal GDP: PAGEREF _Toc143273699 h 43.2.Mean of each decade of Nominal GDP: PAGEREF _Toc143273700 h 4Figure 1.1 PAGEREF _Toc143273701 h 53.3.Comparison of mean of Nominal GDP in each decade: PAGEREF _Toc143273702 h 5 PAGEREF _Toc143273703 h 5Figure 1.2 PAGEREF _Toc143273704 h 53.4.Conclusion of Nominal GDP Part (a), (b), and (c): PAGEREF _Toc143273705 h 64.Nominal CPI Level Data From 1983 to 2022 PAGEREF _Toc143273706 h 64.1.Highest, Lowest, Median, and Mean of Nominal CPI: PAGEREF _Toc143273707 h 64.2.Mean of each decade of Nominal GDP: PAGEREF _Toc143273708 h 7Figure 2.1 PAGEREF _Toc143273709 h 84.3.Comparison of mean of Nominal CPI in each decade: PAGEREF _Toc143273710 h 8 PAGEREF _Toc143273711 h 8Figure 2.2 PAGEREF _Toc143273712 h 84.4.Conclusion of Nominal GDP Part (a), (b), and (c): PAGEREF _Toc143273713 h 95.Range, Variance, and Standard Deviation of Nominal GDP PAGEREF _Toc143273714 h 106.Range, Variance, and Standard Deviation of Nominal CPI PAGEREF _Toc143273715 h 107.Calculating Simple Index of Nominal GDP and CPI PAGEREF _Toc143273716 h 107.1.Formulas: PAGEREF _Toc143273717 h 107.2.Calculations: PAGEREF _Toc143273718 h 10Figure 3.1 PAGEREF _Toc143273719 h 137.3.Analysis of the simple index table: PAGEREF _Toc143273720 h 138.Quantitative Time-Series of Nominal GDP and CPI PAGEREF _Toc143273721 h 13Figure 4.1 PAGEREF _Toc143273722 h 139.Scatter Plot of Nominal GDP and CPI PAGEREF _Toc143273723 h 14Figure 5.1 PAGEREF _Toc143273724 h 14

Introduction:The Consumer Price Index (CPI) serves as a critical economic indicator with diverse applications that profoundly impact financial assessments and policy decisions. This index plays a pivotal role in adjusting wages to account for inflation, ensuring that workers purchasing power remains stable over time. Additionally, the CPI functions as a vital tool in economic analysis by serving as a deflator for Gross Domestic Product (GDP), facilitating meaningful comparisons of economic performance across different periods. The GDP, a fundamental gauge of a countrys economic health, is often measured in two ways: Nominal GDP, reflecting current prices, and Real GDP, which adjusts for inflation. This distinction is essential when evaluating actual economic growth, as nominal figures can be misleading due to inflations influence. By deflating Nominal GDP using CPI, an accurate representation of economic growth can be achieved through Real GDP. This introductory understanding lays the groundwork for a comprehensive exploration of time-series data analysis and its implications on Australias economic trends and stability.

Nominal GDP Level Data From 1983 to 2022Highest, Lowest, Median, and Mean of Nominal GDP:The highest value of the Nominal GDP dataset is 2058102.75151515 (in millions of current $).

The lowest value of the Nominal GDP dataset is 51026 (in millions of current $).

The median of the Nominal GDP dataset is 832159 (in millions of current $).

The mean of the Nominal GDP dataset is 884709 (in millions of current $).

Mean of each decade of Nominal GDP:The mean of the Nominal GDP dataset from year 1983 to 1989 is 9025.816327 (in millions of current $).

The mean of the Nominal GDP dataset from year 1990 to 1999 is 31827.40969 (in millions of current $).

The mean of the Nominal GDP dataset from year 2000 to 2009 is 95682.62941 (in millions of current $).

The mean of the Nominal GDP dataset from year 2010 to 2019 is 161766.92 (in millions of current $).

The mean of the Nominal GDP dataset from year 2020 to 2022 is 668711.0909 (in millions of current $).

Each Decade from Year 1983 to 2022 Mean Nominal GDP (in millions of current $)

1983 1989 9025.816327 $

1990 1999 31827.40969 $

2000 2009 95682.62941 $

2010 2019 161766.92 $

2020 2022 668711.0909 $

Figure 1.1Comparison of mean of Nominal GDP in each decade:Figure 1.2

The above provided data showcases the mean values of Nominal GDP for different decades. During 1983 1989, the average GPD was $9025 million. This relatively lower mean indicates modest economic activity and growth compared to later decades. In addition, from 1990 1999, the GDP increased significantly and suggests a notable economic expansion and development. From 2000 2009, the mean surged to $95682 million, reflecting substantial economic growth driven by factors like globalization, technological advancements, and increased trade. In 2010 2019, the GDP further escalated to $161766 million, this period witnessed considerable economic prosperity, possibly due to recovery from the 2008 financial crisis and ongoing global economic trends. The GDP reached its highest from 2020 2022 to $668711 million. This dramatic increase might be influenced by extraordinary economic events, such as government responses to the COVID-19 pandemic.

In essence, the data illustrates a general upward trajectory in mean Nominal GDP over the decades, signifying Australias economic progress and development. It also highlights the influence on various factors, including economic policies, global events, and technological advancements on the countrys economic performance.

Conclusion of Nominal GDP Part (a), (b), and (c):In summary, the analysis of Nominal GDP data yields insightful findings. Part A reveals the datasets extreme values, median, and mean, providing a snapshot of economic variability. Part Bs decade-wise means underscore shifting economic trends: the 80s displayed modest growth, the 90s marked notable expansion, the 2000s saw substantial surge, the 2010s indicated prosperity, and the 2020s saw a remarkable increase potentially due to extraordinary events. Part C synthesizes this data, comparing and portraying ascending trajectory in mean Nominal GDP, reflecting Australias economic growth. These patterns highlight the intricate interplay of policies, global shifts, and technological advancements impacting the nations economic landscape.

Nominal CPI Level Data From 1983 to 2022Highest, Lowest, Median, and Mean of Nominal CPI:The highest value of the Nominal CPI dataset is 216.141212121212.

The lowest value of the Nominal CPI dataset is 61.2607352941177.

The median of the Nominal CPI dataset is 141.

The mean of the Nominal CPI dataset is 141.

Mean of each decade of Nominal GDP:The mean of the Nominal CPI dataset from year 1983 to 1989 is 10.5025.

The mean of the Nominal CPI dataset from year 1983 to 1989 is 10.8245.

The mean of the Nominal CPI dataset from year 1983 to 1989 is 14.86676471.

The mean of the Nominal CPI dataset from year 1983 to 1989 is 19.039.

The mean of the Nominal CPI dataset from year 1983 to 1989 is 70.92828283.

Each Decade from Year 1983 to 2022 Mean Nominal CPI

1983 1989 10.5025

1990 1999 10.8245

2000 2009 14.86676471

2010 2019 19.039

2020 2022 70.92828283

Figure 2.1Comparison of mean of Nominal CPI in each decade:Figure 2.2

The provided data outlines the mean values of CPI for different decades. During the period 1983 1989, mean CPI was 10.5025, indicating relatively stable inflation, which suggests that prices experienced only modest increases during this time, contributing to a consistent cost of living. In addition, from 1990 1999, the CPI slightly increased to 10.8245. this marginal rise in inflation might reflect ongoing economic stability-controlled price growth throughout the 90s. From 2000 2009, the CPI surged to 14.86676471, indicating a period of higher inflation during the early 2000s. Factors like economic shifts and global events could have contributed to this upward trend. In 2010 2019, CPI further increased to 19.039, suggesting heightened inflation during this decade. Economic changes and policy shifts might have contributed to this substantial rise in consumer prices. The CPI dramatically spike to 70.92828283, in 2020 2022, signifying exceptional inflation levels during this period. Extraordinary factors, such as the COVID-19 pandemics impact on supply chains and economies, could be influencing this notable increase.

Its evident that inflation experienced fluctuations across decades. The early decades saw relatively lower inflation, while the 2000s and beyond experienced significant inflation spikes. The exceptional rise in the 2020s like reflects the unique economic circumstances resulting from the pandemic. These findings underline the complex relationships between economic events, policy decisions and consumer prices.

Conclusion of Nominal GDP Part (a), (b), and (c):In summary, the analysis of Nominal CPI data provides valuable insights. Part A unveils extreme values, median and mean, offering a snapshot of inflations variability. Part B delineates decade-wise means, revealing distinct inflation trends. The 1980s and 90s witnessed stable and marginal inflation, while the 2000s and 2010s saw ascending trends. The extraordinary spike in CPI during 2020 2022 reflects pandemics unique economic impact. Part C synthesizes this data, emphasizing the dynamic nature of inflation. The diverse patterns underscore the intricate interplay of economic factors, policies, and global events that shape inflation trends. This analysis reaffirms the complexity of understanding inflations influence on economies and consumer livelihoods.

Requirement Gathering: Collaborating closely with APM stakeholders enable the identification of precise system requirements. This in-depth understanding of APMs supply chain processes and operational nuances forms the foundation for the subsequent stages.

Range, Variance, and Standard Deviation of Nominal GDPThe range of the nominal GDP dataset from the year 1983 2022 is 2007077 (in millions of current $).

The variance of the nominal GDP dataset from the year 1983 2022 is 4.63958E+11 (in millions of current $).

The standard deviation of the nominal GDP dataset from the year 1983 2022 is 681144.6868 (in millions of current $).

Range, Variance, and Standard Deviation of Nominal CPIThe range of the nominal CPI dataset from the year 1983 2022 is 155.

The variance of the nominal CPI dataset from the year 1983 2022 is 2239.816481.

The standard deviation of the nominal CPI dataset from the year 1983 2022 is 47.32669946.

Calculating Simple Index of Nominal GDP and CPIFormulas:

Calculating the index for Nominal GDP:

Index for Nominal GDP = (Nominal GDP in the current year/Nominal GDP in the base year) * 100

Calculate the index for CPI:

Index for CPI = (CPI in the current year/CPI in the base year) * 100

Calculations:Base Year: 2000

Nominal GDP in 2000: $669,628 million

CPI in 2000: 130.72

Year Nominal GDP ($ millions) CPI Nominal GDP Index CPI Index

1983 51,026 61.26 7.62 46.89

1984 55,324 65.35 8.27 49.98

1985 59,875 69.43 8.94 53.08

1986 61,897 73.52 9.26 56.17

1987 65,009 77.60 9.71 59.32

1988 70,592 81.69 10.54 62.46

1989 78,542 85.77 11.72 65.61

1990 81,659 89.86 12.20 68.73

1991 84,514 93.95 12.62 71.73

1992 149,527 98.03 22.35 74.90

1993 214,539 102.12 32.04 78.08

1994 279,552 106.20 41.79 81.26

1995 344,565 110.29 51.49 84.44

1996 409,577 114.37 61.18 87.61

1997 474,590 118.46 70.88 90.79

1998 539,603 122.54 80.58 93.97

1999 604,615 126.63 90.27 97.15

2000 669,628 130.72 100.00 100.00

2001 734,640 134.80 109.63 103.03

2002 799,653 138.89 119.25 106.07

2003 864,666 142.97 128.86 109.11

2004 890,381 145.20 133.13 111.01

2005 960,608 149.10 143.63 114.03

2006 1,035,295 154.40 154.58 117.98

2007 1,128,881 158.00 168.69 120.85

2008 1,232,583 164.80 184.20 125.87

2009 1,251,928 167.80 187.06 128.22

2010 1,357,034 172.60 202.49 131.79

2011 1,445,430 178.50 215.80 136.59

2012 1,491,046 181.40 222.92 138.78

2013 1,524,383 185.90 227.52 142.11

2014 1,584,578 190.40 236.60 145.57

2015 1,609,221 192.90 240.32 147.43

2016 1,661,000 195.10 248.17 149.17

2017 1,764,000 198.70 263.40 152.04

2018 1,850,000 202.60 276.21 155.18

2019 1,890,000 205.80 282.69 157.24

2020 1,960,667 209.47 292.82 160.18

2021 1,999,630 212.75 298.87 162.57

Figure 3.1Analysis of the simple index table:This table provides the detailed calculations for each years index of Nominal GDP and CPI change from 1983 to 2000 as the base year. It shows the year, the actual Nominal GDP in millions, the CPI value, the calculate Nominal GDP index and the calculated CPI index for each year. You can observe the trends in both nominal GDP and CPI indices over time. The Nominal GDP index reflects economic growth, while the CPI index indicated inflation. This detailed breakdown allows you to analyze each years changes more closely and draw insights into economic fluctuations over the years.

Quantitative Time-Series of Nominal GDP and CPI

Figure 4.1The histograms vividly illustrate the time-series development of Nominal GDP (GDP) and CPI (CPI) over the period 1983 to 2022. For Nominal GDP, the histogram shows a positively skewed distribution. The majority of years are concentrated at the bottom of the GDP scale, with a few exceptional years having notably higher GDP values. The long tail is on the right-hand side of the distribution, indicating sporadic periods of significant economic growth, which could be due to significant economic events or policy decisions. On the other hand, the histogram of CPI shows a relatively symmetric distribution, with most years in the middle of the range. This indicates a more even distribution of inflation rates over time, with most years seeing moderate inflation. The symmetry of the distribution suggests that inflationary pressures have, on average, remained consistent over time, leading to a stable but gradually rising trend in consumer prices.

Scatter Plot of Nominal GDP and CPI

Figure 5.1