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Government and the Economy - Coggle Diagram
Government and the Economy
goverments role (PLEETS)
maintaining legal and social framework
mainting economic competion
public goods and services
correcting externalities
taxing - redestributing income
stabalising the econmy
lower interest rates
ACCC (australian competition and consumer Commission
cartels case study
get togehter set prices, inflate prices, cheat consumers
implements price ceilings and floors
ensure business conduct is fair
controlling the economy
progressive tax
monetary policy
managed by RBA, manages interest rates, they increase cash rate to decrease inflation, spending and economic activity
low interest rates = higher economic activties
fiscal policy
federal gov, use of gov spending and taxation to influence the economy,
increase gov spending and lower taxation to increase econ acitivty
lower tax = higher econ acitivty
gov policyy controls it
gov policy is affected by media, busiess groups, political parties, international influences and other groups
federal budget
gov budget themselves so they can afford to intervene in economy
can be in surplus (extra $$), defecit (not enough $$) or balanced ($=$)