Which of the following measures is least likely to assist with the achievement of strong rates of Economic Growth over the shorter term?
Lower personal income tax rates
A bigger budget deficit
Tax concessions for savings
Tax concessions for businesses that export
Which of the following measures is not an example of a budgetary policy initiative
A reduction in tax rates
A reduction in interest rates
A reduction in government welfare payments
A reduction in tariffs
Which type of budget would be considered to be most 'expansionary' in terms of the impact on AD in the economy
A reduction in the size of the surplus
An increase in the size of the surplus
An increase in the size of the deficit
A decrease in the size of the deficit
If the government delivers an increase in the estimated size of the 'discretionary surplus'. This means that:
The surplus is estimated to increase from the previous year
The surplus is estimated to increase from the previous year because of automatic increases in tax revenue
The government increased tax rates
The surplus is estimated to increase from the previous year beyond the level that would have occurred automatically
If the government's strategy is to achieve budget balance on average over the course of the economic cycle, which of the following is incorrect?
It is likely to have helped ensure that any deterioration of the current account balance was due to the private sector rather than the government sector
It would help to stabilise economic activity by allowing deficits to occur during periods of strong growth and surpluses to occur during periods of weak growth.
It would assist with government efforts to reduce net government debt over time
It would help to increase the government's net financial worth over time
A sales tax, such as Australia's GST, is an example of a
direct tax with progressive effects
an indirect tax with regressive effects
a direct tax with regressive effects
an indirect tax with progressive effects
Means testing of government income support payments should, ceteris paribus, do all of the following except:
increase the size of the gini coefficient on disposable income
Decrease the size of the budget deficit
decrease government expenditure
decrease government transfer payments
A tax on alcopops (ready to drink mixed alcoholic beverages) is designed to assist with the achievement of:
A more efficient allocation of resources
Low inflation
Economic Growth
Equity in the Distribution of Income
The cyclical component of the Budget refers to
the discretionary component of the Budget
those components of the Budget that are highly cyclical or variable
that part of the budget outcome that moves with changes in economic activity
that part of the Budget outcome that is influenced by changes in policy decisions by the government
Which of the following measures is least likely to assist with the achievement of External Stability