commerce

Macroeconomics

Focuses on the aggregate demand for goods and services at a national level, including national spending, output, income, and employment.

Aggregate demand

Total value of all spending on final goods and services produced by a nation over a period.

Budgetary Policy

Government's management strategy based on estimates of its receipts and outlays.

Fiscal Policy

Use of the government's budget to achieve economic objectives.

Deficit

Government receipts are less than government expenditure.

Surplus

Government receipts exceed government expenditure.

Balanced

Government receipts equal government expenditure.

Taxation

Government levy used to influence distribution, economic growth, and prices.

Direct taxes

Levies imposed directly on individuals' and companies' income.

Indirect Tax

Levies placed on the sale of goods and services.

Government Budget Spending

How government uses collected receipts to provide goods and services for the community.

Impacts of Budget Outcome

Surplus constricts the economy, deficit expands it.

Monetary Policy

Managed by the Reserve Bank of Australia to control spending levels in the economy.

The Cash Rate

Interest rate changes affect savings, borrowing, and inflation levels.