The budget! (1 Viewer)

[rumour]

How does the budget relate to:
employment, eco growth, inflation, Balance of Payments??

 

[George W. Bush]

Underlying cash balance - 2.4b
Australia's GDP - ~600b

It doesn't.

 

[i-color]

the decrease in a budget surplus from the previous financial year means that the fiscal stance is mildly expansionary. injections are greater than leakages and thus expands the circular flow via the transmission mechanisms (use the eco terminology!!!!!) and the multiplier effect. Thus it increases eco growth etc.

For employment- the tax cuts etc provide incentive for people to find jobs as they are paying less tax and thus increases participation rate and decreases unemployment. Also the greying population is causing deep structural unemployment in aust- the budget aims to rectify these structural problems through their superannuation reforms etc and incentives to have babies through their extensive welfare assistance for famillies etc.

inflation- want to decrease structural unemployment so a lower inflation rate may be achieved without threatening a short term increase in unemployment as well.

BOP- exports are expected to rise from 2% to 8% due to world economy stabilising and US finally recovering from their mild recession etc. While imports are expected to decrease as our domestic activity begins to slow and our consumer confidence dampens due to deflating housing bubble. Thus terms of trade improves thus CAD decreases thus BOP improves

 

[Kupow pow]

what role does fiscal policy play in the policy mix (its goals) in 2004? and ,how have the roles of fiscal policy and monetary policy changed in recnet years??

 

[ameh]

Originally posted by i-color
the decrease in a budget surplus from the previous financial year means that the fiscal stance is mildly expansionary. injections are greater than leakages and thus expands the circular flow via the transmission mechanisms

whats the transmission mechanism?

 

[i-color]

transmission mechanisms are like all the factors that affect the economy in the circular flow such as savings, investment, production etc etc.

Originally posted by Kupow pow
what role does fiscal policy play in the policy mix (its goals) in 2004? and ,how have the roles of fiscal policy and monetary policy changed in recnet years??

in recent years, fiscal policy plays a lesser role in the govt's policy mix. Basically fiscal policy nowadays merely act as an adjunct to monetary policy only. Overall, govt fiscal and monetary policies have actually played a lesser role in the economy because our economy is so responsive to external factors now- eg global economy fluctuations etc. Thus govt policies is used more for stabilising effects and increasing our dynamic, allocative and technical efficiency

 

[aditya]

is ther anything u dunt know

 

[Sarah168]

probably...maybe thats where the other 2% in his eco mark went

nahh im kidding...98 is excellent

 

[rumour]

Where can I get last years budget????
Only the figures!!

Also who has the best commentry on the budget ( Fin. reviewers)?

 

[ameh]

Originally posted by rumour
Where can I get last years budget????
Only the figures!!

Also who has the best commentry on the budget ( Fin. reviewers)?

Financial Review and SMH

 

[i-color]

Originally posted by Sarah168
probably...maybe thats where the other 2% in his eco mark went

nahh im kidding...98 is excellent

LOL.....man....i'm a girl dammit.

 

[i-color]

mmm it's more like i take an interest in eco....so i am able to link everything together

 

[JazzaT]

Originally posted by i-color
mmm it's more like i take an interest in eco....so i am able to link everything together

Jeez... if only I were as interested in ecos as you... I mean i'm "interested", but there's no way I can "link everything together"

 

[kochou]

yeh im really into eco i dont see me getting good marks

 

[i-color]

hahaha....yeah I dunno.....i just realllly realllly like eco. but i'm doing eco/law at uni now...and this semester is microeconomics...and i don't like it too much. it's the lecturers i tell you......and the boring atmosphere of uni.

 

[Bizzy Bone]

lol, there's only 1 eco class @ our skool, consisting of like 15 pplz -dunno why more ppl dont pick it!! There was this cunt last yr whoz fuckin smart ass @ everything, and he doesnt even do eco; he got a high distinction, whereas our eco class got shitty participations and credits..

 

[Kupow pow]

how has the fiscal balance changed in 2004-5

 

[i-color]

fiscal surplus has decreased from the previous financial year.

 

[mushroom_head]

so it's possible to become interested in eco??? that just doesn't make any sense. I've been trying to like it for the past year but i don't think it's working

 

[i-color]

well it's one of those questions about the chicken and the egg....i don't really know if i like it because i'm good at it, or i'm good at it because i like it. :S

i jsut remembered, i started liking it as soon as i did it in year 11...and have liked it heaps ever since. it was actually a subject i was planning on choosing back in yr 11....thank god i did.