Activity 8(f)

Activity 8f: Purpose of BP initiatives?

Note 1: a work for the dole scheme is an example of a mutual obligation requirement to receive unemployment benefits.


Note 2:  that for a number of the budgetary policy initiatives, all of the boxes are shaded which indicates that the initiative was designed to stimulate growth and promote jobs (i.e. reduce unemployment) and also reduce inflation.  Students should note that policy initiatives that can simultaneously achieve all 3 of these outcomes will be supply-side in nature.  For example, increased expenditure on education and training will improve the quality of human capital, promote productivity, reduce costs and prices (i.e. reduce inflation) which in turn stimulates economic and employment growth over time. To the extent that some of the boxes are shaded in grey, it indicates that the budgetary policy initiative is only partly designed with this goal in mind.