The economy of Australia is doing well if compared to other advanced nations. The outlook of the economy looks stable with the rating of AAA. Currently, the economy of Australia is growing at a rate of 2.7%, which is good, given the extent of resources it has. However, Australia has the capacity to do even more if it is able to diversify its investment in other sectors. The mining sector of Australia has reached almost its full potential and there is a need to invest in other important sectors to produce more output in the economy. The current inflation rate in Australia is 1.82% and the unemployment rate is 5.2% Therefore, it is necessary to decrease the unemployment in the economy by using expansionary monetary and fiscal policies.