1. Discuss what is meant by Fiscal Policy.

2 What are the instruments of fiscal policy?  Evaluate the effectiveness of increasing government spending and tax cuts as a means of stimulating aggregate demand.

3. Explain, using the statistics of government expenditure, personal taxation rates and transfer payments , what fiscal policy stance did the 2011-12 Federal Budget take?

4, Evaluate the appropriateness of the government's fiscal policy stance to the present economic situation within Australia with particular reference to the growth rate, level of inflation and unemployment, the current account deficit and monetary policy stance.