Economics - Australia's Government and relation to the economy

Market Failure Market failure refers to the shortcomings or inadequacies of the market system of economic organisation in achieving allocative efficiency in all circumstances. Market failure can occur in a number of areas of economic activity such as the following: - The market fails to provide public goods which may be socially valuable but because of a lack of incentive, the private sector fails to provide them in sufficient quantity and quality - The market …

…budget where G = T. Taxpayers may save less as well as spend less. A balanced budget was achieved in the 1997-98 budget An Expansionary fiscal policy involves a net increase in government spending either through lower taxes or increased government spending or a combination of the two. In the 1990-91 recession the government undertook explicit spending and taxation decisions to boost growth which contributed to an increase in the structural component of the budget deficit.