Analysis of the likely impacts of the 2003-04 Australian Federal Budget on Australia's economic growth, unemployment and inflation.

1. Introduction The government implements its macroeconomic policy using two main tools; fiscal policy and monetary policy. Government macroeconomic management is designed to minimise fluctuations in the business cycle so we can experience good growth, low rates inflation and relatively stable unemployment (Sloman, J. and Norris, K. 2002; . Fiscal policy refers to the government's choices regarding the overall level of government purchases or taxes (Gans, J. et al, 2000; 721). This paper will focus on the government's fiscal policy, …

…paves the path for sustained and stable economic growth in both the short and long term. References: GANS, J., KING, S., STONECASH, R., 2000 The Principles of Economics. Harcourt: Australia SLOMAN, J., NORRIS, K., 2002 Macroeconomics: 2nd ed. Pearson Education, Australia. ANZ, 2003, Budget Report 2003-04. TREASURY, 2003, Commonwealth Budget Overview 2003-04. WESTPAC, 2003, 2003-04 Federal Budget Analysis. ESLAKE, S., 2003 Costello Budget a departure from the past: economist Available at: http://www.abc.net.au/public/budget/2003/content/s854234.htm