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Chapter 31 - Fiscal policy. This chapter discuss the implications of and complications associated with fiscal policy within the aggregate demand–aggregate supply framework. | Fiscal Policy 2012 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Learning Objectives Discuss the implications of and complications associated with fiscal policy within the aggregate demand–aggregate supply framework Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Federal Government Finance Federal expenditures large expenditure on social security and welfare specific purpose grants Federal revenues Personal income tax Company income tax Indirect and other taxes GST excise tax Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Discretionary Fiscal Policy The deliberate manipulation of taxes and spending by government for | Fiscal Policy 2012 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Learning Objectives Discuss the implications of and complications associated with fiscal policy within the aggregate demand–aggregate supply framework Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Federal Government Finance Federal expenditures large expenditure on social security and welfare specific purpose grants Federal revenues Personal income tax Company income tax Indirect and other taxes GST excise tax Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Discretionary Fiscal Policy The deliberate manipulation of taxes and spending by government for the purpose of altering real GDP and employment, controlling inflation and stimulating economic growth Not all fiscal policy is deliberate, a range of automatic stabilisers are discussed later Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Expansionary Fiscal Policy Increased government spending or lower taxes or increased transfer payments (social security payments) to reduce the effects of recession, i.e. boost GDP and reduce unemployment Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- Expansionary Fiscal Policy Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Macroeconomics 7/e by Jackson and McIver Slides prepared by Muni Perumal, University of Canberra, Australia 9- ASLS Qp Price level Real gross domestic product AS1 AD2 Q1
