What is fiscal policy? Explain the role of the government in the reallocation of resources, redistribution of income and stabilisation of the australian economy. Refer to the federal budgets in your response.
General notes
- Roughly 1-2 thousand words
- As much evidence as possible
- Show cause and effect – unintended consequence of gov action.
- Research all on sundial under chapter 16 – budget issue 20. And plain english eco
- helpful website, mr plain english
Within essay
- Start with stabilisation in essay (2020, -0.3,-7)
- Then redistribution of income
- Explain role of gov –
- How the government through fiscal policy is achieving
Fiscal policy – each para about each budget
Federal budgets
- How have they done reallocation of resources
– supplying themselves
– subsidy
Fiscal policy – need to explain what it is, as well as definition
- Outcome as well as stance (explain what each mean) e.g – 25/26 42.1bn deficit (1.5%gdo) to support eco growth
- What r the things the gov did to solve this – recession in 2020 and 1991.
NEED
- 2020 stabilisation
- Surplus in 2022/23, windfall taxes. Increase company tax revenue. Increase progressive income tax revenue
- To state financial year 2020, (2021-22 do 3 budgets)
- Job keeper
- Business cycle diagram
- Pick budgets during covid
- Keynesian – timely , targeted temporary
- Need percentage
- LOTS OF DATA
- Multiplier
2 or three examples for each
- Redistribution of income (tax scales) – stage 3 tax changes
- Stabilisation of the economy
- Need to define budget deficit.
Goals or problems of the economy
- Low eco growth – inflation
→ cost push (costs of production
- Attempts at full employment
→ demand pull inflation
→imported inflation
→inflationary expectations
External impacts internal –