Question from the CSSA paper 2005. (1 Viewer)

[always_smile]

Question from the CSSA paper 2005.

Analyse the role and rationale of macroeconomic policies in achieving the objectives of economic mangement in Australia.

A person from my school said that the only economic objectives that we talk about is price stability or inflation, exchange rate and economic growth. However, when they ask for objectives could we focus on also:
- unemployment
-distribution of y and wealth
-external stability ie foreign debt and foreign equity etc
-environmental management.

I do not understand what exactly objectives means. I understand the role of macroeconomic policies in these areas but i do not understand what objectives to talk about exactly.

Thanks in advance to anybody who can clear the query up.

 

[biscuit]

Look at the syllabus for the start of Topic 4 - Economic Policies and Management; the first bit of it outlines what the BOS believes are the main economic objectives-

1. Eco growth
2. Full Employment
3. Price Stability
4. External Stability
5. Distribution of Wealth/Income
6. Environment

Within those categories you could bring up diff things- but in an extended response you would not have to mention all of them, just hte ones that are most relevant to the question

Edit: In regards to the question; i'd refer to at least 4 of the objectives.. its a pretty broad question though

 

[always_smile]

Thanks. The person wrote the essay in the eaxm only refering to economic growth and price stability and got a mark of 18/20. I dont know how. must have done a great job.
Thanks again

 

[Cityboy]

You definetly need to refer to inflation, unemployment, economic growth and external stability when discussing macroeconomic policy objectives. The objectives of distribution of income and wealth and environmental management are not as important when discussing macroeconomic policy however a discussion of fiscal policy in relation to these economic objectives would propably increases your chances of a band 6 in this essay.

If you only discussed inflation youd only be headed towards a band 4 max

 

[MeehShanku]

Just a quick question. If the question asked "Analyse the role and rationale of macroeconomic policies in achieving economic development and distribution of income and wealth" do u still mention a bit of unemployment, economic growth, inflation, etc?? but obviously with the main focused on economic development and distribution of income and wealth

 

[Jago]

you can talk about the other points but you have to make sure you can relate unemployment/inflation/whatever to "economic development or income and wealth"

 

[d_a_n_z]

essay structure?

Im trying to structure this essay and abit lost. the couple of paths im thinking of going down...

Macro explnation
FP expalantaion, determination ect
MP the same

Then each issue? and how each one deals? but im thinking thast gonna be really repetitve.

So then i considered doing

Macro intro
FP detremination explnation
- external balance?

MP detremination explanation
- inflation

then talking about the other issues? which doesnt seem right either?? Any help is much apprecaited...how would you structure it?
(PS im talking about the role and rationale of macro in economic mangament)