Aggregate Supply policies    Goals of AS policies  Productivity v efficiency  Productivity v competitiveness  The impetus for AS policies  BP supply side initiatives  Industry policy  Microeconomic reforms  Labour market reforms  Benefits of LM flexibility  Trade liberalisation  MRPs and  internal stability  MRPs and  external stability  MRPs and equity  MRPs and living standards

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 Course notes quick navigation

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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MRPs and living standards

The whole purpose of AS policies (like all policies) is to improve the welfare or living standards of Australians.  In general, material living standards, as measured by real GDP per head, should improve as the nation produces better quality goods and services and/or more goods and services. The ability for MRPs to assist with the achievement of all the government's key economic goals over time, by extension, means that living standards must be enhanced in the long term.  

With respect to the impact on non-material living standards, AS policies can help to advance these if productivity improvements result is less waste or depletion of resources.  This includes, AS or MRPs that result in better technology or machinery that uses less energy, produces less pollution and is much faster than existing technology.  However, non-material living standards can deteriorate for those individuals who are working longer and harder, and the environment can suffer if the AS or MRP has involved a depletion of resources (e.g. tax reform that encourages greater investment in new production facilities, such as mines, that can have a negative impact on native flora and fauna.)

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