Macroeconomic Policy ? inflation. unemployment and growth.
For decade or more,macroeconomic policy in Australia seems to have been directed primarily at controlling inflation in the belief that success in archieving this target would be associated with macroeconomic stability and growth.Following the Grobal financial crisis the main emphasis of macroeconomic policy has been on trying to avoid a recession.Contrast these two phases of policy and explain how macroeconomic policy objectives,target and instrument have differed.
1. Outline the experience of the Australian economy over the last 10-15 years,making use of major macroeconomic aggregate.
2. Discuss the concept of instruments and targets in magroeconomic policy and assess hoe this concept might be applied to the current policy flamework in Australia.
3. Show how the economic theory you have learnt can be used to explain current macroeconomic policy.
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