Government Intervention On The Economy
The function of all Australian parliaments is not only to act as legislative authorities, but also, to be economic regulators of the relevant national/state economy. Although Australia is heavily reliant upon the price/market system for decision making regarding the allocation of resources, some of these decisions are still made by the government. Government intervention occurs in the short term, so that long-term stability and full employment can be achieved While the Federal Government concerns itself with the development of macroeconomic policies in order to regulate the economy, the state government is more concerned with the implementation of microeconomic policies and the stimulation of the local economy. This stimulation results in an increased employment rate, growth of gross state produce (GSP) at sustainable levels, and an increase in the living standards of the inhabitants of that state.
View Full Essay