The Nature of the Economy
This module contains a collection of resources for teachers to introduce students to the Australian economy and its participants, the circular flow model, and the business cycle. The resources support a number of Economics and Commerce curriculum objectives.
Delivery Notes
The Nature of the Economy
Guidance notes for teachers containing background information, and a summary of available resources and how they could be used within a classroom setting to deliver this topic.
Performance of the Australian Economy
Guidance notes for teachers containing background information, and a summary of available resources and how they could be used within a classroom setting to deliver this topic.
Illustrators
Types of Unemployment
Summary of the different types of unemployment within the labour market.
Groups in the Labour Market
Diagram showing the different groups of people within the labour market.
Monetary Policy and COVID-19
Infographic outlining the monetary policy measures implemented by the Reserve Bank in response to the economic effects of COVID-19.
The Circular Flow Model
Diagram showing and describing the five-sector circular flow model of the economy
The Business Cycle
Diagram showing the business cycle and features of economic expansion and contraction
Presentations
A Case Study of Monetary Policy Implementation on 3 August 2016
This presentation explains how the Reserve Bank implements monetary policy using a case study of what happened on a day when the Reserve Bank changed the cash rate.
A Case Study of Liquidity Management on 3 August 2016
This presentation explains how the Reserve Bank manages liquidity using a case study of what happened on a day when the Reserve Bank changed the cash rate.
What is the Economy?
This presentation contains key information introducing students to the economy, circular flow model, and interdependence of the different sectors.
The Business Cycle
This presentation contains key information introducing students to the business cycle, inflation, interest rates and the role of the Reserve Bank.
Learning Activities
Reading and Interpreting Charts
Provides questions and activities linked to the Reading and Interpreting Charts video.
Opening the Vault
Guides students through how to find the information they need on the RBA website.
Unpacking Publications
Helps students familiarise themselves with RBA publications and provides some tips to make the most of the information provided.
Key Economic Indicators – Unpacking the Snapshot
Helps students to apply skills to summarise and explain key economic statistics and trends.
The Transmission Mechanism
Helps students understand how a change in monetary policy flows through to the rest of the economy.
Exploring Inflation
Work through this Activity to investigate interesting examples of inflation developments and trends.
You Make the Decision – the Cash Rate
Helps students identify key economic indicators and how recent movements in these indicators could influence the cash rate decision.
Perspectives on RBA decisions
Helps students to consider how decisions made by the RBA might affect different people in the economy.
Building Charts Using RBA Statistical Tables
Helps students to gain confidence building Excel charts from data available on the RBA website.
Sectors in the Economy
Helps students understand the five sectors of the circular flow model
Complete the Circular Flow Model
Provides an outline of the circular flow model for students to label
Injections and Leakages
Helps students identify different economic activity as injections or leakages
Business Cycle Case Studies
Help students consider how different people might be affected by the business cycle
Analysing Australia's Economic Performance
Helps students explore economic growth (GDP growth), unemployment rate, inflation and the cash rate
Comparing the Australian and Indian Economies
Helps students compare charts on GDP growth for Australia and India
Explainers
What is Monetary Policy?
Explains what monetary policy is, what it aims to achieve and how monetary policy decisions are both made and implemented.
The Transmission of Monetary Policy
Describes how changes made by the Reserve Bank to its monetary policy settings flow through to economic activity and inflation.
How the Reserve Bank Implements
Monetary Policy
Describes the Australian cash market and explains how the Reserve Bank ensures that the cash rate is as close as possible to its target.
Unconventional Monetary Policy
Describes the different tools used by central banks (including the Reserve Bank of Australia) when conducting unconventional monetary policy.
Causes of Inflation
Describes what inflation is and the main causes of changes in the inflation rate.
Australia's Inflation Target
Describes the inflation target, why the Reserve Bank targets inflation and how the target works.
Inflation and its Measurement
Describes how inflation is measured, explains how different indicators of underlying inflation are calculated, and outlines some of the limitations of using the Consumer Price Index.
Economic Growth
Explains what economic growth is, how it is measured and explores the concepts of aggregate demand and supply.
Recession
Describes the nature of the business cycle, different approaches to identifying a recession and some of the recessions that have occurred in Australia.
Productivity
Explains what productivity is, how it is measured, its drivers and the benefits of productivity growth.
Unemployment: Its Measurement and Types
Explains how the unemployment rate is measured and describes the main types of unemployment.
The NAIRU – Non-Accelerating Inflation Rate of...
Explains what the NAIRU is, why it is important and what determines its level.
Drivers of the Australian Dollar Exchange Rate
Explains the factors that drive changes in the Australian dollar exchange rate over time.
Exchange Rates and the Australian Economy
Explains how changes in the value of the Australian dollar affect economic activity and inflation in Australia, along with the nation's balance of payments.
Exchange Rates and their Measurement
Explains the concept of an exchange rate, how exchange rates can be measured and the different types of exchange rate regimes that exist.
The Balance of Payments
Examines the structure of Australia's balance of payments, describes the relationship between its accounts and explains the accounting framework.
Trends in Australia's Balance of Payments
Describes the longer-term trends within the two sides of Australia’s balance of payments: the current account and the combined capital and financial account.
Bonds and the Yield Curve
Explains what a bond is, how the yield curve is formed from a series of bond yields and why the yield curve is important.
Banks' Funding Costs and Lending Rates
Explains what banks' funding costs and lending rates are and what influences them.
Australia and the Global Economy – Terms of Trade...
Discusses the causes of the terms of trade boom of 2005 to 2012 and explains the way in which it affected the Australian economy.
The Global Financial Crisis
Summarises the main causes of the global financial crisis, how the crisis unfolded and how policymakers responded to it in Australia and abroad.
The COVID-19 Pandemic: 2020 to 2021
Summarises the main economic effects of the COVID-19 pandemic in Australia from 2020 to 2021 and describes how policymakers responded to it.
What is Money?
Explains the features of money and the unique functions that money performs in an economy.
Digital Currencies
Explains what digital currencies are, including cryptocurrencies and Central Bank Digital Currencies, and discusses some of the public policy implications.
Origins of the Reserve Bank of Australia
Traces the origins of the Reserve Bank to creation of the Commonwealth Bank of Australia in 1911, and outlines the growth in central banking responsibilities.
Digital Interactives
Inflation Explorer
The Inflation Explorer is an interactive tool that lets the user explore how prices of individual goods and services, and overall inflation, have changed over time.
Snapshot Comparison
This interactive tool allows you to compare snapshots of the economy at different points in time.