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Economic Issues


             .
             Business and consumer confidence were boosted by the sustained low inflation and strong economic growth, and the improvement in confidence in the economy tended to encourage more Spending & I.
             7.5 Policies to Sustain economic Growth.
             The Gov is able to use macroeconomic policies in order to influence the rate of eco growth. Fiscal policy involves the use of the commonwealth govs budget in order to achieve economic objectives. Gov expenditure is an injection and gov revenue(taxation) is a leakage. By controlling levels of expenditure and rev, the gov is able to influence level of eco growth.
             The gov can use monetary policy to influence eco growth. If increased growth is desired by gov, interest rates will be decreased, encouraging consumer & bus spending. Vice versa for desired decreasse in eco growth.
             The gov has pursued microeconomic reform to increase economy's sustainable growth rate. These policies have been aimed at reducing the extent to which higher growth causes inflationary and current account problems, the factors which can often constrain eco growth.
             8 UNEMPLOYMENT.
             8.2 Measuring the Level of Unemployment.
             The Labour force.
             The labour force can be defined as that section of the population 15 yrs of age and above who are either working or actively seeking work.
             Those persons not included in the labour force are:.
             Children under 15yrs of age.
             Fulltime, non working students over 15yrs.
             People who perform fulltime domestic duties.
             unemplyed persons not willing to seek jobs or attend job interviews.
             People who have retired from the labour force.
             .
             The Labour Force Participation Rate.
             The labour force participation rate can be defined as the percentage of the working age population, those people aged 15 yrs and over, who are in the labour force i.e. either working or actively seeking work.
             .
             Labour Force Participation rate % = LABOUR FORCE 100 WORKING AGE POPULATION(15+) 1.


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