Assessment Notes Flashcards
Why is economic growth an economic objective?
Economic growth is increasing the economy to satisfy the wants of its members so as to increase society’s standard of living.
How did the mining boom affect macro objectives ?
Mining boom
- increased GDP= how to measure growth
- increased employment and paid more
- article said increased spending on infrastructure
- booms associate with inflation
- increase tax and privatisation because of debt.
Why is price stability an objective?
To keep inflation between 2-3%
Why is full employment an macro objective ?
It occurs when everyone is willing and able to work can find employment.
What is fiscal policy?
Refers to the deliberate use of government spending and revenue powers to change the level of economic activity.
What is monetary policy?
The short term actions taken by the central bank to affect the availability and price of credit.
Which taxes are for the state ?
Payroll taxes, land taxes, motor vehicle tax and royalties levied on minerals.
What Roles of government
- provisional of public goods and services
- provisional of welfare services
- regulation of business enterprise
- macroeconomic management
