“c04AggregateDemandPoliciesAndDomesticEconomicStability_PrintPDF” — 2022/6/7 — 8:31 — page 329 — #43
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Weblink The 2016–17, 2017–18 and 2018–19 budgets
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1. Describe the changing domestic macroeconomic conditions that have recently existed in Australia. 3 marks 2. Giving reasons, explain whether recent budget outcomes been expansionary or contractionary. 2 marks 3. Identify and explain three important budget initiatives from the last two years that have been used to affect Australia’s domestic macroeconomic goals. 3 marks 4. Examine figure 4.16. FIGURE 4.16 The countercyclical operation of the Australian government’s budgetary policy as a stabiliser of aggregate demand and economic activity
D
Australian government budget receipts, budget outlays and underlying budget outcome ($ millions)
TE
7 00 000 6 00 000
CO RR EC
5 00 000
Value ($ millions)
4 00 000 3 00 000 2 00 000
U
N
1 00 000 0
–100000 –2 00 000
2016–17
2017–18
2018–19
2019–20
2020–21
2021–22*
2022–23*
2023–24*
2024–25*
Year Underlying budget balance ($ millions)
Outlays or expenses ($ millions)
Receipts or revenues ($ millions) Source: Australian government, Budget 2021–22, MYEFO December 2021, Appendix E: Historical Australian Government Data, PP330–333, see https://budget.gov.au/2021-22/content/myefo/download/myefo-2021-22.pdf
TOPIC 4 Aggregate demand policies and domestic economic stability
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