Economic Growth

26. Discuss the sources of economic growth in Australia and analyze government policies to achieve sustainable economic growth Economic Growth refers to an increase in a country's productive capacity as measured by changes in real GDP (over time) (Usually a year). It allows countries to raise per capita income levels and also the standard of living through increases in real GDP. Sources of economic growth usually include increases in the quantity and productivity of new and …

…Australian government to pursue an effective fiscal policy. Microeconomic policies can also be used in the longer term to address specific structural problems to encourage and allow growth for the future. Some microeconomic policies may include : cuts to protection such as tariffs and quotas, reform to competition policy, Labour market reforms such as those implemented in 2006, Reforms to infrastructure such as telecommunications to make these markets more efficient and competitive and also widespread taxation reform.