Microeconomic reform in Australia

Microeconomic reform in Australia Write an essay on Microeconomic reform in Australia including discussion on: * The meaning of the term ‘Microeconomic reform’. * Examples of recent microeconomic reform * Reasons for microeconomic reform * Possible effects of microeconomic reform in the Australian economy. Microeconomic reforms (MER) are the actions to reform particular product and factor markets with the aim of raising the economy’s long term growth rate and increasing its flexibility. It also refers to the set …

…to rise competition and therefore reduce the CAD but this cant happen. This is because the increase in national income unfortunately doesn’t increase the level of national savings but of spending because of higher wages and purchasing power. Therefore the Exchange rate will appreciate and the CAD will tend to worsen. There are many consequences for MER but in the long run, the benefits of structural change in the economy out weigh the costs.