practice essays :: post here :: (1 Viewer)
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TastesGoodBut
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i think its funny how u just so happen to be wanting ecos notes/ handouts as well...
iyamahobbit
Resident hobbit
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- 2004
Personally, i think it's best to do the essays for yourself. If anything, perhaps it would be more beneficial for people to post the essay *questions* that they're answering - just because you'll work out your weak points much more effectively by actually writing the essay for yourself.
Also, there's no guarantee that someone else's essay that you read will be perfect (and 95% of the time it won't be). So ya, do the essay urself, and get ur teacher or tutor to mark it.
Also, there's no guarantee that someone else's essay that you read will be perfect (and 95% of the time it won't be). So ya, do the essay urself, and get ur teacher or tutor to mark it.
Both micro and macro economic policies haev played a significant role in achiving price stability, particularlly in the last 20 yrs.
Price stability refers to the rate of inflation. According to the RBA, this includes constraining the rate of inflation between 2 and 3 percent.
Macro eco policies are reffered to as short term demand management. They consist of monetary policy and fiscal policy. Fiscal policy involves the use of the commonwealth budget outcomes to achive govt objectives
The role of fiscal policy in achiving price stability is linked to eco groth and can be seen in fluctuations of the business cycle. A business cycle of a hypothetical economy is included on the following page.
(pic of business cylce)
During periods of high eco growth (booms), infaltion will tend to rise, as a greater demand for various goods and services increases. The role of fisc. policy is to smooth out these fluctuations, both booms and recessions. It may achive this by increasing income expenditure. This has the effect of lowering agg demand and reducing the extent of the 'boom;' period. As agg demand falls, so does inflationary pressures as the demand for g and s decline. An expansionary fisc. policyinvolves the opposite, lowering income taxes and increasing govt expenditure. This will increase agg demand, stimulate the economy and increase inflationary pressures as there is more money in the economy to spend and consumers bid up ther prices for g and s. An expansionary is used when inflation is low or negative.
Monetary policy may be used to achive price stability through interest rates set by the RBA. Since 1992, the RBA has bee committed in constraining inflation between 2 and 3 %. It achives this by implementing DMOs. By selling 2nd hand govt securities, the rba creates a surplus of funds in the short term money market. This will cause banks and other NBFIs to raise rates. This will lead to a higher level of debt servicing and less funds for consumption, effective constraining demand and thus inflation.
This policy has been used effectively by the RBA since the mid 1990s as inflation has averaged between 2 and 3 % apart from a short term rise due to petrol prices and the GST in 2000-2001. Further, this has been achived despite Aust's sustained groth and high GD, averaging around 4-5% since 1994. This may be attributed to successful micro eco policies during the 1980s.
Mirco eco plicy is referred to as long term supply management. Most recently, Aust has undertaken various mirco reforms with the aim of increasing the country's int'l competitiveness, improving the CAD and raising productivity, however one of its main objectives is also price stabilty.
The deregularion of the AUst financial sector led to the removal of govt controls on interest rates and led to the RBA influence on inflation targeting. This was explained earlier.
Futher, other micro reforms aim to raise competitiveness betweeen firms, forcing then to lower costs by adapting more efficient production methods. Increase competitiveness may be acheived by reducing protection levels. Historically, Aust has employed high protection levels to protect local industry and employment. Most recently, however, aust has achived one of the lowest rates of protection among OECD countries and is a vocal advocate of free trade. The effect of this is a greater allocation of resources to those efficient firms best able to compete in the intl market. These efficient firms have the lowest production costs and are able to seel their goods at the lowest prices, thus lowering inflation through price competition.
Moreover, competition between firms has occurred thorugh deregulation of many industries....
fuck it, that was about 2/3 of my trial response on policies to control price stabilty. cant be fucked typing out the rest, maybe later if other poeple post essays (particularly ones on globalisation)
everyone else but me is a selfish dick. I am going to recieve hella karma for this.
Price stability refers to the rate of inflation. According to the RBA, this includes constraining the rate of inflation between 2 and 3 percent.
Macro eco policies are reffered to as short term demand management. They consist of monetary policy and fiscal policy. Fiscal policy involves the use of the commonwealth budget outcomes to achive govt objectives
The role of fiscal policy in achiving price stability is linked to eco groth and can be seen in fluctuations of the business cycle. A business cycle of a hypothetical economy is included on the following page.
(pic of business cylce)
During periods of high eco growth (booms), infaltion will tend to rise, as a greater demand for various goods and services increases. The role of fisc. policy is to smooth out these fluctuations, both booms and recessions. It may achive this by increasing income expenditure. This has the effect of lowering agg demand and reducing the extent of the 'boom;' period. As agg demand falls, so does inflationary pressures as the demand for g and s decline. An expansionary fisc. policyinvolves the opposite, lowering income taxes and increasing govt expenditure. This will increase agg demand, stimulate the economy and increase inflationary pressures as there is more money in the economy to spend and consumers bid up ther prices for g and s. An expansionary is used when inflation is low or negative.
Monetary policy may be used to achive price stability through interest rates set by the RBA. Since 1992, the RBA has bee committed in constraining inflation between 2 and 3 %. It achives this by implementing DMOs. By selling 2nd hand govt securities, the rba creates a surplus of funds in the short term money market. This will cause banks and other NBFIs to raise rates. This will lead to a higher level of debt servicing and less funds for consumption, effective constraining demand and thus inflation.
This policy has been used effectively by the RBA since the mid 1990s as inflation has averaged between 2 and 3 % apart from a short term rise due to petrol prices and the GST in 2000-2001. Further, this has been achived despite Aust's sustained groth and high GD, averaging around 4-5% since 1994. This may be attributed to successful micro eco policies during the 1980s.
Mirco eco plicy is referred to as long term supply management. Most recently, Aust has undertaken various mirco reforms with the aim of increasing the country's int'l competitiveness, improving the CAD and raising productivity, however one of its main objectives is also price stabilty.
The deregularion of the AUst financial sector led to the removal of govt controls on interest rates and led to the RBA influence on inflation targeting. This was explained earlier.
Futher, other micro reforms aim to raise competitiveness betweeen firms, forcing then to lower costs by adapting more efficient production methods. Increase competitiveness may be acheived by reducing protection levels. Historically, Aust has employed high protection levels to protect local industry and employment. Most recently, however, aust has achived one of the lowest rates of protection among OECD countries and is a vocal advocate of free trade. The effect of this is a greater allocation of resources to those efficient firms best able to compete in the intl market. These efficient firms have the lowest production costs and are able to seel their goods at the lowest prices, thus lowering inflation through price competition.
Moreover, competition between firms has occurred thorugh deregulation of many industries....
fuck it, that was about 2/3 of my trial response on policies to control price stabilty. cant be fucked typing out the rest, maybe later if other poeple post essays (particularly ones on globalisation)
everyone else but me is a selfish dick. I am going to recieve hella karma for this.
clairegirl
the name's Anne!
yeah i know everyone else in the other forums help each other out heapz!! STINGY FRIGGEN ECONOMICS STUDENTS!! hehehe ..... i'de post my essays but they're not exactly spectacular so i dont think ish kewlz if i do
the only 20 i got was for my policy mix one, but i think my teacher was drunk when he marked it so yeahh..... coz i usually get about 15 or 18 for my essays.
the only 20 i got was for my policy mix one, but i think my teacher was drunk when he marked it so yeahh..... coz i usually get about 15 or 18 for my essays.
saves.the.day
Member
Ok.. so for an essay question like: Evaluate the government's economic policies in maintaining a sustained level of economic growth (found in the WeSSSTA paper for this year.. why did I choose this question? becasue this paper was on the top of my messy study table so I've got no real reason for choosing this question)
ok here we goo... (btw i finished SDD yesterday and haven't studied for economics yet aside from my holiday study so I'll answer the question with what i know). After study today/tomorrow i will probably get back here to fix this up/post a new response for another question
The federal government have a number of economic policies to maintain a sustained level of growth. These policies include fiscal and monetary policy, structural change and microeconomic policies and prices and incomes policy.
Economic growth is defined as the material advancement of a nation and an increase in it's productive capactiy. It is measured through the percentage change of GDP (gross domestic product) each year calculated by the final price of total production in the economy. In the past 10 years, economic growth has averaged 3-4%, within the target of the Government.
The macroeconomic policy of fiscal policy involves the governments use of taxation and spending to manipulate growth levels. Fiscal policy is the main tool used to control growth. A contractionary effect on the economy will be induced if the government increases taxation relative to government expenditure or by decreasing government expenditure relative to taxation. This policy is effective further in the sense that it can target areas of growth. This is one of fiscal policies main advantages. If the government wishes to stimulate the economy in particular area, it can target it by increasing government spending in these areas. Similaryly, it may choose to reduce government spending in areas of high demand to dampen demand.
While this macroeconomic policy is effective in this sense, it also carries several disadvantages. Fiscal policy suffers from time lags. This is due to the time involved in actually implementing the policy. While the government may declare their plans for government expenditure and taxation, it still mussed be passed through the house of representatives.
In 1990, global and domestic recession brought economic growth to -0.34%. By use of expansionary fiscal policy, demand was shortly brought back up. In this sens, fiscal policy can be seen as an effective policy in controling economic growth. In 2000-01, economic growth was at 2% and my further implementing a slightly expansionary policy that year, the next year economic growth rose to 3.8%. Fiscal policy therefore, is truly effective in managing growth in Australia.
Another macroeconomic policy, monetary policy, while taking a back seat to fiscal policy in managing economic growth in recent years is highly effective in managing demand. The RBA controls the cash rate in the short term money market by creating a deficit or surplus in each banks exchange settlement account through the purchase and sale of previously issued government bonds and securities. In doing so, supply of funds in the STMM will me increased/decreased, causing the cash rate to rise/fall accordingly, having an effect on domestic interest rates. If interest rates are high, it will encourage individuals to hold off borrowing and demand, dampening it and causing a contractionary effect in the economy. If interest rates are lowered, it encourages borrowing and spending, and therefore stimulating demand resulting in economic growth. This policy is therefore effective in maintaining economic growth. It's effectiveness is further explicated in it's quick implementation time. Each month the RBA meets to determine the interest rate and carries this advantage over fiscal policy. However, it does suffer from time lags of 8-18 months before any physical changes are evident.
In 1974, monetary policy was dropped 32 times to 4.75 causing a huge stimulation in demand. However, it needed to be dropped 32 times as the consumers simply did not respond to changes. In this effect, it can be seen that this economic policy was not effective in maintaining a sustained growth level. Today however, every change in monetary policy has an effect on the economy mainly due to speculators. It is estimated 90% of investment is speculative and therefore slight changes of 0.25 percent result in changes in demand.
The two macroeconomic policies of fiscal and monetary policy can be viewed as effective, explicating how growth averaged 3-4% for the past 10 years. However, both are demand management policies and do not effect the structural problems of the economy. They also do suffer from time lags and implementation difficulties. However, they are still the most effective policies in managing the economies sustained economic growth.
ok so i didn't cover micro or prices and incomes policy as i sorta stated i would in the essays intro.. I got tired hehe. I know that there aren't many statistics.. I haven't started studying for economics yet so those are the statistics/points i remember from my holiday study.
Good luck with economics everybody!!!
-Lester
edit - i added the following below:
ok here we goo... (btw i finished SDD yesterday and haven't studied for economics yet aside from my holiday study so I'll answer the question with what i know). After study today/tomorrow i will probably get back here to fix this up/post a new response for another question
The federal government have a number of economic policies to maintain a sustained level of growth. These policies include fiscal and monetary policy, structural change and microeconomic policies and prices and incomes policy.
Economic growth is defined as the material advancement of a nation and an increase in it's productive capactiy. It is measured through the percentage change of GDP (gross domestic product) each year calculated by the final price of total production in the economy. In the past 10 years, economic growth has averaged 3-4%, within the target of the Government.
The macroeconomic policy of fiscal policy involves the governments use of taxation and spending to manipulate growth levels. Fiscal policy is the main tool used to control growth. A contractionary effect on the economy will be induced if the government increases taxation relative to government expenditure or by decreasing government expenditure relative to taxation. This policy is effective further in the sense that it can target areas of growth. This is one of fiscal policies main advantages. If the government wishes to stimulate the economy in particular area, it can target it by increasing government spending in these areas. Similaryly, it may choose to reduce government spending in areas of high demand to dampen demand.
While this macroeconomic policy is effective in this sense, it also carries several disadvantages. Fiscal policy suffers from time lags. This is due to the time involved in actually implementing the policy. While the government may declare their plans for government expenditure and taxation, it still mussed be passed through the house of representatives.
In 1990, global and domestic recession brought economic growth to -0.34%. By use of expansionary fiscal policy, demand was shortly brought back up. In this sens, fiscal policy can be seen as an effective policy in controling economic growth. In 2000-01, economic growth was at 2% and my further implementing a slightly expansionary policy that year, the next year economic growth rose to 3.8%. Fiscal policy therefore, is truly effective in managing growth in Australia.
Another macroeconomic policy, monetary policy, while taking a back seat to fiscal policy in managing economic growth in recent years is highly effective in managing demand. The RBA controls the cash rate in the short term money market by creating a deficit or surplus in each banks exchange settlement account through the purchase and sale of previously issued government bonds and securities. In doing so, supply of funds in the STMM will me increased/decreased, causing the cash rate to rise/fall accordingly, having an effect on domestic interest rates. If interest rates are high, it will encourage individuals to hold off borrowing and demand, dampening it and causing a contractionary effect in the economy. If interest rates are lowered, it encourages borrowing and spending, and therefore stimulating demand resulting in economic growth. This policy is therefore effective in maintaining economic growth. It's effectiveness is further explicated in it's quick implementation time. Each month the RBA meets to determine the interest rate and carries this advantage over fiscal policy. However, it does suffer from time lags of 8-18 months before any physical changes are evident.
In 1974, monetary policy was dropped 32 times to 4.75 causing a huge stimulation in demand. However, it needed to be dropped 32 times as the consumers simply did not respond to changes. In this effect, it can be seen that this economic policy was not effective in maintaining a sustained growth level. Today however, every change in monetary policy has an effect on the economy mainly due to speculators. It is estimated 90% of investment is speculative and therefore slight changes of 0.25 percent result in changes in demand.
The two macroeconomic policies of fiscal and monetary policy can be viewed as effective, explicating how growth averaged 3-4% for the past 10 years. However, both are demand management policies and do not effect the structural problems of the economy. They also do suffer from time lags and implementation difficulties. However, they are still the most effective policies in managing the economies sustained economic growth.
ok so i didn't cover micro or prices and incomes policy as i sorta stated i would in the essays intro.. I got tired hehe. I know that there aren't many statistics.. I haven't started studying for economics yet so those are the statistics/points i remember from my holiday study.
Good luck with economics everybody!!!
-Lester
edit - i added the following below:
That is very true. In the physics and SDD forums.. everyone helps others in marking, with handing out notes and helping those with dot points. The economics forum isn't as friendly lol.
Last edited:
Well here is some feedback on your essay. Considering that you havn't studied for the topic, i think your economic knowledge is really tops. Well at least you got around as much figures as i woulda thrown in even if i had studied (prob some problem on my part). However, for a question on "sustained economic growth" i think inflation is also a major part of the question you should address. Also, your discussion on Microeconomic Policy would be important to the essay, as micro is more of a long term government policy which fits well with the topic of sustained growth.
Mark? no idea but certainly potential of a very good essay there.
saves.the.day
Member
Hey thanks numg for your reply. I appreciate your comments and I'll take them on board.
Thanks again
Thanks again
TastesGoodBut
Member
u mention that fiscal is more important than monetary... well i tend to disagree in terms of macro because of the fact that the governments fiscal aim is simply for a balanced CAD over the enitre period.....
however its still in the syllabus
a better alternative is to state in the past, governments relied on fiscal policy to blah blah, but now the focus is on budget balance, and monetary policy is the gov'ts main macroeconomic tool
saves.the.day
Member
I did not say it was more important!!!
I just re-read my response and can't find anywhere where I said it was more important. Yes I did say it was highly effective though and I think you might have mis-interpreted the line:
It may have seemed like I did I guess but I say that monetary policy takes a backseat to fiscal policy this year. I remember reading that point in one of my leading edge newsletters that was issued a few months ago I think before trials .. NO! I don't subscribe to the newsletter!
its my teachers copy but i have photocopies off all the newsletters to date from her.If you want the source (I'll post the newsletter article date or whatever you want) of where I got that point I'll just go through the articles and find it but yeh I'll stick by that point.. monetary policy is taking a backseat to fiscal in recent years.
Sorry if my post sounds anal or something (I can't be bothered re-reading and editing out the analness) its about 12:43 am and I'm sorta tiredd.. lol I just watched matrix revolutions with the guys and I didn't really think it was better than the first or second.
TastesGoodBut
Member
nah i wasnt trying to be critical... i just always thought that the government at the moment was only using fiscal to balance over the cad and was more into monetary... but both have pretty much done fuck all in the last 2 years up until Tuesday
*damn interest rates... why couldnt they change NEXT month*
*damn interest rates... why couldnt they change NEXT month*
saves.the.day
Member
I might mis-interpret this quote but what I gather it seems like you feel you need to know the most up to date statistics?
Well if you are.. this next bit is just to relieve some of the stress.. I've spoken to Tim Riley (hsc ext. response marker and author of an eco text) before about this and I asked how recent do our statistics need to be and he said alot of students spend alot of time trying to get the most up to date statistics. Really all you need is even the average of this year.. heck I'm using the statistics I used for the trials. But you could always clarify with the advice line but yeh,
~DuMbEr~
Member
ahahahahahahhaha..u dickhead wog!! ahaha..thats funny shit
saves.the.day
Member
lol pretty funny. I fit yer description though.. I am actually an asian trying to get into medicine lol