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HSC Economics Fiscal Policy Essay

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This was an essay on the question: Analyse the impact of fiscal policy on economic growth, income distribution and resource use in the Australian economy. I received a mark of 95 for HSC Economics.

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HSC Economics Fiscal Policy Essay
Topics this document covers:
Economy Fiscal policy Public finance Economics Macroeconomics Economic policy Keynesian economics Fiscal drag Tax Monetary policy Progressive tax Government budget balance
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Topics this document covers:
Economy Fiscal policy Public finance Economics Macroeconomics Economic policy Keynesian economics Fiscal drag Tax Monetary policy Progressive tax Government budget balance
Sample Text:
Recently, Australia’s strong economic performance has been attributed to the benefits brought by globalisation with the increased integration of economies resulting in greater export and import opportunities. Strengthened by the early 1990s commodities boom, Australia has thus experienced a period of rapid expansion but must remain wary and continually monitor its fiscal policy decisions, so that its economic objectives are achieved. These objectives are to sustain economic growth, improve income distribution and to ensure that the efficiency of resource use is maximised. Fiscal policy refers to the government’s use of its annual budget to influence the economy, mainly by changing the level of government spending and taxation. There are two ways they can do this. Firstly, they use automatic stabilisers such as the income tax which do not require explicit acti...
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