1. Government in Australia  Three Levels of Government - What are they? - What do they do?  Why have 3 levels of government?

2. Structure of Federal Govt  Governor General  Senate  House of Representatives

3. The Constitution  What is it?  Why have it?  How can it change?

4. Public Sector  What is it?  Why have one?  How is it changing?

5. Fiscal Policy  The use of changes in government spending and taxation revenue (budget) to 1. Reallocate resources 2. Redistribute income 3. Regulate the economy (stabilisation of business cycle

6.  Why is Fiscal Policy important? Y = C + I + G + (X-M) Therefore, Fiscal Policy has the power to regulate demand

7. Budget Outcome  The budget is a plan of G and T  Possible Outcomes 1. Balanced G = T 2. Surplus T > G 3. Deficit G > T Aim: to achieve fiscal balance, on average, over the course of the economic cycle

8. Fiscal Stance 1. Expansionary or loose Fiscal Policy 2. Contractionary or tight Fiscal Policy 3. Neutral – outcome remains unchanged