Impacts of Fiscal Policy (2 Viewers)

[Craig]

Hey All
I have an extended response due on the impacts of Fiscal Policy on the Australian Economy and I’m wondering if I can get some help. In my response I have to analyse the likely impact of the current budget on resource use, income distribution and economic activity.
At this stage I’m unsure of what to state for resource use. Any ideas would be excellent.
In terms of economic activity, I’m under the assumption that the current budget will provide economic growth with moderate stimulus. Now this is appropriate as this year our economic growth is expected to slow down, to a growth rate of 3.5%. However that is all I can really think of. Is there any other ideas which would be relevant to this?
In terms of distribution of income, I’m going to state that the budget is set to have a mixed impact, but its overall effect is likely to increase income inequality. In this I’ll talk about how the reductions in personal income tax will only benefit higher income earners and will make the tax system less progressive. However I don't think that’s enough to be able to complete an extended response. Are there any others aspects of this year’s budget which are relevant to these 3 issues that I can state in my response?
Any help will be much appreciated.

 

[hanjoc]

ive also got no idea for resource use. none at all come to mind.
economic activity - the budget is moderately expansionary in a period of boom in the business cycle which means that it's working against policy mix goal because of political influences. EG is expected to remain at 3.5% although, our teacher keeps saying this budget leads to greater inflationary pressures in the market etc.
and yeh, income inequality your saying what i think so that has to be good - because of tax brackets its more inequal cept their justifying that with a 'family' minded budget.

hope thats of some help. its not much but makes me comprehend it all a little better...