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1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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Objectives of Budgetary Policy

As discussed on the previous page, the overriding objective of all policies is to improve the welfare or living standards of all Australians and/or to achieve the most efficient allocation of the nation's resources.  In terms of Australia’s economic objectives or goals, budgetary policy is used to assist in the achievement of the following:

The achievement of these economic goals will help to boost living standards and welfare for all Australians - which of course is the overriding objective of governments.  In addition to these economic goals, the federal government also details its medium term fiscal objectives in the budget each May.  We will review this shortly, but first we need to focus on the structure and nature of the budget itself.

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