The impact of the Global Financial Crisis on economic growth
As a result of the global recession, Australia’s GDP was forecasted to contract by 0.5% in 2009-10 in comparison to other advanced economies which were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the global recession although is better placed and is expected to perform better than almost all other OECD economies. The global recession has also triggered a fall in household wealth and a disruption in consumer confidence with consumption forecasted to contract by 0.25% in 2009-10.
Economic recovery package – use of macroeconomic policies
Fiscal policy, a macroeconomic policy, can influence resource allocation, redistribute income and reduce the fluctuations of the business cycle, influencing the overall level of economic activity. The policy utilizes the Commonwealth Government’s Budget to achieve the government’s economic objectives such as by altering the level of government expenditure and taxati…
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