This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit.

On 4^thSeptember 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June, 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded a quarterly growth of 0.5%.

However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian).

Given the economic conditions described above, recommend the appropriate fiscal policy that the federal government should implement. Clearly explain why this type of government policy is needed.