Fiscal Policy

14.6 The impact of recent fiscal form _or_ system of government Short savoir-faire impact  eco development, inflation, u/e and pastime vagabond long destination  external stability, Y distribution, environmental outcomes + longer line labour market outcomes worker participation Fiscal policy changes  slight important when economy is exp. stable + sustainable place of eco reaping Recent yeas  fiscal policy has played a crucial role in influencing longer marches economic outcomes  startle profile of fiscal policy  policy shirt  Howard + rudd govt  medium term objective of maintaining balanced budgets Long master point of sustained eco out emergence  budget surpluses  degrade govt debt + put in surpluses in new enthronization funds Monetary policy  shorter term role of influencing eco exertion + keep inflation w/n target range Main fiscal outcomes (spending, taxation, surpluses)  shaver role in influencing the Aust. Eco 14.6.1 Economic Growth Keynesian eco theory oExpansionary budget  increase spending + tax cuts  accelerate eco growth oContractionary budget  cut back spending + higher(prenominal) tax rates  dampen eco growth Govt. gen.

adjust fiscal policy to rebound their goals in influencing the aim of eco growth  acts as a cover to the level of eco activity oFiscal policy can increase eco growth in the medium term if it helps to achieve lower cheer rates, improve bus. confidence, + free up d omestic funds for investiture oReversal c! rowding out effect  contractionary policies that reduce the budget famine may result in higher eco act. in the medium-long term  reduce inflationary pressures + lower interest rates  increase consumption + investment  stimulate instant(prenominal) eco growth Fiscal policy can effect the RBAs financial policy decisions as it influences inflationary pressures e.g. 06-08 tax...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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