Fiscal Policy...? (1 Viewer)

[16021991]

Hi Everyone,

I have two questions about fiscal policy that I don't know what I should write for...can anyone help me out?

Explain the role of fiscal policy in achieving macroeconomic stability for the government.

Discuss the effects of the 2008/09 Fiscal Policy stance on income distribution and economic activity.​

Any ideas??

Thanks everyone !!

 

[gurmies]

Hey there,

Essentially both questions are asking for the same thing. In your essay, establish the primary aims of macroeconomic policy in achieving sustainable economic growth as well as internal/external stability. During a slowdown, the main aim of macroeconomic policy (which will be expansionary) is to increase aggregate demand. Fiscal policy achieves this in a more direct way without the associated risks of a 'liquidity trap' that may result from monetary intervention. Below is a link to a very useful resource which you should have a look at - it covers both of your questions in depth with the latest figures/stats.

http://www.leadingedge.com.au/answers/updates/eco_2009_budget.pdf

 

[16021991]

Wow, thank you so much gurmies that is a really helpful resource

thank you, thank you, thank you

 

[gurmies]

Wow, thank you so much gurmies that is a really helpful resource

thank you, thank you, thank you

not a problem =]