2. Fiscal Policy

  1. Fiscal Policy
    1. Has the government been following an expansionary or contractionary fiscal policy between 2010 and 2015? Give evidence to support your answer. You need to consider what was happening to the budget deficit or surplus over this period.
    2. Does a budget deficit always indicate an expansionary fiscal policy? Does a budget surplus always indicate that fiscal policy is contractionary? Explain your answer.
    3. What type of fiscal policy – expansionary or contractionary – was the government implementing in its May 2015 Budget? Give figures to support your answer.
    4. Do you think that Australia’s fiscal policies between 2010 and 2015 have been the correct policies for the economy over this period? (This must be answered as part of your presentation – in your individual assignment you should write 250-500 words on this issue)

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