Report On Australian Govt Economic Policies

Added on -2020-02-17

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Economics: Principles, Modelsand Policies
Table of ContentsEconomics: Principles, Models and Policies...................................................................................1INTRODUCTION...........................................................................................................................3ECONOMIC PRINCIPLES.............................................................................................................3CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONEconomic policies played a significant role in the growth and development of thecountry. There are various microeconomic factors which can influenced of a nation wageearners, businesses and economic growth. The present research report is related with theAustralian government economic policies which can improving its position at the domestic aswell as the global level (Iossa, and Martimort, 2015). There are various economic principleswhich can be used by the government in order to increase wage rate, economic growth and makea sound business environment within the country. Price ceiling and price floor: Price ceiling is the maximum price of any product or service at which the product orservice can be sold in market place. If the ceiling price is high, then the equilibrium price it willhave no effect on the equilibrium. And if the ceiling price is low then the equilibrium price it willlead to the shortage of the good. If the demand is more than the supply, then it shows theshortage of goods and it will lead to loss due to inefficient quantity produced and supply. If theproduct is sold at high price the it is cause the profit for the organisation. Price floor is theminimum price of any product which a buyer has to offer to the seller for buying the product. Ifthe price floor is less than the equilibrium price it will no effect on the equilibrium and if theprice floor is more than the equilibrium price it will lead to excess supply. If the price floor ismore the product price, then it is the profit situation for the seller and if the floor price is lessthan the product price then it will cause loss.If prices reach to the higher level, in long run then it effects the money. But short run ismore complex compare to long run. In short run, if there is an increment of money then it willaffect the level of spending as well as demand for any products and services. If demand of anyproduct or services get high then it will affect the prices of that product, it will increase due toincrease of demand. But same time it encourages their production of goods and services theyproduce and helps in reduce unemployment because if there is more production then they need tohire more workers (Einav, and Levin, 2014)

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