2 quick questions: (1 Viewer)

[derek_]

1) how many successive quarters of economic growth has australian undergone?

2) what's the difference between discretionary policy and non-discretionary policy, the book explains it poorly imo...better examples than the leading edge book would also be good :]

 

[underthebridge]

the last negative quarter was december 2000 at -0.4%. so work that out.

 

[joca187]

Discretionary Policy is the structural side, ie. the parts that the government can control such as spending on education, health, transport etc. etc.. Non-discretionary is the cyclical side, that is it occurs because of the changes in the economic climate and not controlled by the government.

it can be seen through the two automatic stabilisers - progressive tax system, which means as economic expansion takes place, people move into higher tax brackets and thus pay more tax (increase in government revenue slowing economic growth).

the other automatic stabiliser is social welfare, as when there is a recession unemployment rises and therefore, government spending rises (increasing government expenditure and thus increasing economic growth)

 

[olay]

oui, in other words discretionary policy refers to spending in components such as health, edu etc regardless of cyclical factors, whilst non discretionary policy refers to spending as a result of cyclical conditions [e.g. more spending on welfare payments b/c of a recession - which will automatically occur as more ppl become eligible recipients of the benefits].

 

[derek_]

merci monsieur olay

 

[Sarah168]

Olay is a girl

 

[derek_]

Olay is a girl

sorry, that's my french vocab :\