GOAL OF INFLATION
2-3 CPI
CURRENT HEADLINE INFLATION 3.2 SEPTEM 2025
GOAL OF FULL EMPLOYMENT
4-5% NAIRU UNEMPLOYMENT
CURRENT 4.5 UNEMPLOYMENT SEPTEM 2025
GOAL OF STRONG AND SUSTAINABLE ECONOMIC GROWTH
1.8% YEAR ON YEAR
what is opportunity cost
value forgone on the next best alternative once resources are used a certain way
4 step proccess of explaining supply demand diagram
- which curve shift and why
- shortage or supply at original price
- how demand and supply contract or expand until equilibrium
- state new equilbirum price and quantity higher or lower
strong and sustainble ecnomic growth refine
highest rat eof economic growth with high levels of employment without jeropoaridng low and stable inflation adn intermtmeporaral effiicency
long term unemployment
being without paid work or have bene actively looking for a job for 12+months.
NAIRU DEFINE
The NAIRU is the lowest rate of unemployment possible within an economy before inflation begins to accelerate unsustainably.”
monetary policy stance
3.6% since august 2025( less contractionaray).. cash rate decreased therefore positive influence on ad.
mention what neutral rate of mp 3-3.5% before stating less contractionary stance. 3.5-4%
balance of payments
make sure to say credit going in or debit going out
- higher interest rates in domestic or overseas
what to talk about
interest rate increase america
more return on investment thus increase demand usd
increase in out flow resulting in incraease and excess supply of aud thus depreciation
budget defiict past 2 years.
24-25 28.3b
25-26 42.1b
refinorces expansionary stance
structural / disctretionary stabilizers
- energy rebates
house hold receive up to 150 in rebate costing 1.7B - tax cuts indiivudal recieve 268 in tax cuts per year costing 17.1b
- 2 billion air port raillink from sunshin to melbourn eairport .
autoatic stabilisers
china slowdown .
aggreate supply policies
education -> AS
$350m into fee-free uni preparation courses 2024-25 budget
tax rreform
- tax cuts indiivudal recieve 268 in tax cuts per year costing 17.1b
define aggregate supply policies
government initiatives designed to reduce average cost of production / improve supply conditions to enhance Australia’s productive capacity and living standards over time
tax reforms
to improve the efficiency of tax administration and to maximise the economic and social benefits that can be achieved through the tax system
define budgetary policy
efers to governments use of its budget to achieve specific outcomes in country. it contains details of all income and expenditure of federal government
PED/PES SCALES
a
ped / pes less than 1 = inelastic
1 exactly = unit elastic demand
more than 1 = elastic
ped equation
PED = % change in quantity demanded / % change in price
elastic demand / supply
occurs when small percentage change in price results in large percentage change in quantity demanded e.g luxury goods
define market failure
Market failure : refers to a situation where allocation of g/s by a free market is inefficient leading to net loss in social welfare. This occurs when market fails to maximize overall economic well-being.
example of market failiure
externalities
government fialiure
-
U3 AOS 1 MICROECONOMICS 1/323
-
U3 AOS 1 MICROECONOMICS 2/334
-
U3 AOS 1 MICROECONOMICS 2/326
-
fds4
-
U3AOS2 MACROECONOMICS GOALS52
-
U3 AOS3 AUSTRALIA AND THE INTERNATIONAL ECONOMY24
-
U3 AOS 3 AUSTRALIA AND THE INTERNATIONAL ECONOMY REVISED40
-
U4 AOS 122
-
MONETARY POLICY31
-
monetary policy refined30
-
BUDGETARY POLICY36
-
aggregate supply policies66
-
aggregate supply policies cram28
-
CRAM31
