What is your overall impression about the strengths and weaknesses of the 2020/2021 Australian

Commonwealth budget?

The details of the budget are available at:https://budget.gov.au/2020-21/content/overview.htm

Question Two

i) The government estimates $15,600 million dollars will be spent on the Job Keeper program in

2020-21 (Appendix C). Using two diagrams- both an Aggregate Expenditure and an Aggregate

Demand/Aggregate Supply diagram -explain to a non-economist, the economic theory behind

how this program is designed to influence the Australian economy in the next 12 months.

ii) Explain the theoretically likely impact of this program on long run inflation and unemployment.

(10+4= 14 marks marks)

Question Three

Conduct your own research to analyse how the projections for economic growth in Australia in 2020/21

compare internationally. Include at least three other countries or regions in your comparison.

(7 marks)

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Question Four

The Commonwealth Government has forecast an increase in government debt with net debt expected to be

36.1 per cent of GDP at the end of 2020-21. (Commonwealth of Australia, Budget Overview 2020-21)

i) How does this compare with Commonwealth government debt historically and internationally?

ii) In your opinion, is this level of debt a problem for the Australian economy in the next ten years?

Why or why not?

(4+6= 10 marks)

Question Five

What is your overall impression about the strengths and weaknesses of the 2020/2021 Australian

Commonwealth budget?