Unit 4 EXTERNAL Economics Notes

By Mia · In 2022
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  • Comprehensive Notes for Economics Unit 4
  • Include Diagrams and key explanations
  • Covers all syllabus points on economics
  • Comprehensive notes on monetary, fiscal and microeconomic policies
  • 20 page

First page: Demand management policies – Fiscal Policy Fiscal policy includes measures used to change government revenue (tax) and government spending to influence aggregate demand; thereby supporting the federal government’s macroeconomic objectives of economic growth, internal and external stability. Fiscal policy uses the federal budget to affect three key areas: Measures (policies) that impact the distribution of income and resource allocation will subsequently affect internal and external stability and the production of goods and services i.e. economic activity and economic growth. ➢ The Australian Government implements fiscal policy to stabilise the level of demand in the economy and help promote its economic objectives ➢ Government budgets outline the planned spending and estimated revenues for the following financial year and reflect the policy priorities of the government ➢ They detail not only the funds available for government activities, but also the strategy for influencing the level of macroeconomic activity and promoting structural changes.

Added October 2022