The paper "Economics for Decision Making in Australia " is a good example of a macro & microeconomics case study. Macroeconomic policies in Australia have typically been effective in influencing the short-term demand in the economy. The macroeconomic policy includes two major policy settings namely the fiscal and monetary policies. During the past few years, fiscal and monetary policies have played an important role in controlling the economic conditions aimed at inducing economic growth in Australia. Therefore, using the fiscal policy the Australian government aims to improve its national savings, control the public debt and maintain stability by providing opportunities for economic growth.
In addition, the Reserve Bank of Australia (RBA) uses the monetary policy to influence the availability and cost of money or credit in the economy. Introduction Australia is one of the largest economies in the world, which has had strong economic prospects for a significant number of years in the past. This has largely been enabled by the appropriate macroeconomic policies in Australia. However, the eurozone crisis and the economic recession, witnessed in the recent past, have had negative implications on the economic condition of the country.
Australia in the recent past few years has transformed into a country that substantially relies on market mechanisms rather than significant interventions, ownership and controls of economic activities by the government as witnessed in the past. The two macroeconomic policies used in Australia include the budgetary/ fiscal and monetary policies. These policies are used to manage the level of activity in the economy. Using fiscal policies the government attempts to regulate and control the economy with the aim of reducing the unemployment rate, influencing interest rates to control the economy, controlling inflation and stabilizing business cycles.
Therefore, through fiscal policies governments can manage the level and consumption of government revenues. Using fiscal policies, the government can also put in place methods to be used to finance the budget deficits and also how to use budget surplus (Ball & Seidman, 2011).
Ball, MK & Seidman, D. (2011). Supply and demand, The Rosen Publishing Group.
Australian Bureau of Statistics, 2014, Annual unemployment rate [Data file]. Retrieved from http://www.abs.gov.au/AUSSTATS/
The World Bank, 2014, GDP growth rates, Inflation rates and Trade in Australia, Retrieved from; http://data.worldbank.org/