2 Qs... (1 Viewer)

[sakurali823]

1. are we currently in a upswing or downswing business cycle?
2. are we in a expansionary or contractionary fiscal stance?
oh and also, 3)whats the target band for eco growth GDP? is it betwen 3-5% ?
thanks~~

 

[nickthebiscuit]

1. are we currently in a upswing or downswing business cycle?
2. are we in a expansionary or cotionary fiscal stance?
oh and also, 3)whats the target bantracnd for eco growth GDP? is it betwen 3-5% ?
thanks~~

1: upswing
2: i don't think we're in a particularly expansionary stance, i remember costello saying that we've got a surplus of 1% GDP last yr, and this yr 1% of GDP, so it's mostly the same
3: Economic growth is economic growth =S don't know how else to answer your question. Weak economic growth is anything below 1%, moderate is between 1-3, and strong is 3-5 i guess if i remember correctly from my teacher. Anything higher is crazy lol -> China LOL

 

[Demandred]

Anything under 2% is considered quite low. Should aim around 3% growth.

 

[kokodamonkey]

the govts target band for sustainable economic growth is 3-3.5% of gdp.

 

[redom]

I think the gov't lowered growth expectations over the course of the economic cycle to 3.25% recently. Probably in response to structural factors in our economy most importantly, the ageing population.

 

[redom]

hmm answering whether were currently running expansionary policies or contractionary, i think, not too sure just going of some recent trends, that the economy is near full employment, moderate growth, low inflation, record low unemployment yadda yadda, and the govt isnt really attempting to expand the economy too much otherwise itll put upward pressure on inflation!

last year's three rate rises may suggest that its contractionary though:S

 

[nickthebiscuit]

interest rates have nothing to do with fiscal stance

interest rates = monetary policy
budget = fiscal policy

 

[atreus]

the general idea for economic growth over the last decade or so was that it was meant to be an average of 4%, but it did get down to about 2.75%, and now the average would be lower. now the aim is for about 3% and up.

 

[hunter1]

This years budget is slightly contractionary with Costello saying it is neutral. Also Fiscal can have an effect on interest rates, beceause a tax cut or increased spending can cause inflation. WHich may take the inflation rates outside the 2 -3% that the RBA are aiming for

 

[williamc]

The government trys to keep inflation between 2-3% becuase they believe if inflation is in that target range everything else in the economy will fix itself, such as unemployment. Economic growth of around 3.5%, is about the range the government attempts to maintain to not cause any inflationary pressures.

 

[kokodamonkey]

The government trys to keep inflation between 2-3% becuase they believe if inflation is in that target range everything else in the economy will fix itself, such as unemployment. Economic growth of around 3.5%, is about the range the government attempts to maintain to not cause any inflationary pressures.

i concur.

ideal economic growth target is 3-3.5% . anylower you have unemployment issues, any higher you have CAD and inflation issues.