Macroeconomic Essay Question (1 Viewer)

[sarlovesyou]

Ok have been given this essay to do on the budget:

Macroeconomic management can be defined as the use of government policies to influence the economy with the aim of reducing large fluctuation in the level of economic activity and achieve certain economic objectives. The main objectives of economic management are economic growth, low inflation, full employment, external balance, an equitable distribution of income and wealth and ecologically sustainable growth.

Analyse the impact of current macroeconomic policies on the economic performance of the Australian economy. In your response discuss the effectiveness of recent macroeconomic management.

Im a little lost, what should I focus on (obviously the economic objectives) ?

Any help would be greatly appreciated.

 

[Zrap]

Talk about Fiscal Policy if its contractionary or expansionary, talk about the fiscal outcome. Automatic stabilisers. etc etc.
And bring in stuff from the recent Federal Budget
p.s post pics of yourself on BOS

 

[gnrlies]

Ok have been given this essay to do on the budget:

Macroeconomic management can be defined as the use of government policies to influence the economy with the aim of reducing large fluctuation in the level of economic activity and achieve certain economic objectives. The main objectives of economic management are economic growth, low inflation, full employment, external balance, an equitable distribution of income and wealth and ecologically sustainable growth.

Analyse the impact of current macroeconomic policies on the economic performance of the Australian economy. In your response discuss the effectiveness of recent macroeconomic management.

Im a little lost, what should I focus on (obviously the economic objectives) ?

Any help would be greatly appreciated.

impact = fiscal outcome relative to last year (i.e. fiscal stance), and direction (as well as likely future direction which is up) for the cash rate - and obvious impacts on the actual economy

discuss the effectiveness = how successful have these policies been
Fiscal policy - arguably not contractionary enough / tax grabs / increase in overall spending
Monetary Policy - blunt instrument, ability to lower inflation in an environment of imported inflation, trade off between u/e inflation



I would also structure an answer critiquing active macro policy as well as the limitations of both monetary and fiscal. Suggest what alternatives exist and why they might be better