1. Effectiveness and Limitations of Economic Policies  Chapter 18 is excellent summary of Topic 3 and Topic 4

2. Economic growth  Trends – June qtr 2012 = % annual = 3.6%  Policy response Microeconomic – long term Macroeconomic – short term  Effectiveness and Limitations

3. Unemployment  Trends – Aug 2012 = 5.2%  Policy response Labour market reform (microeconomics) Monetary Policy/Fiscal policy  Effectiveness and Limitations Structural problems

4. Inflation  Trends – June qtr = 0.5% annual = 1.2%  Policy response Competition policy Labour market Monetary Policy  Effectiveness and limitations

5. External Stability  Trends- June qtr CAD = -$13($ b) BoGS deficit $247m annual = -$ 40b Net foreign debt = $742b Net Foreign Liabilities = $880b  Policy response Micro reform Fiscal Policy  Effectiveness and Limitations

6. Distribution of Income and Wealth  Trends – increasing gini co-efficient  Policy responses Fiscal Policy Employment  Effectiveness Incentive vs poverty

7. Environment  Trends – Carbon Tax  Policies Regulation vs market based International agreements  Effectiveness ESD

8. Limitations of policies  Time lags Fiscal Policy- short term (months) Monetary Policy- medium term (6-18 months) Microeconomic Reform – Long Term (20 years)

9.  Political factors Election economics Pressure from lobby groups Senate obstruction

10.  Global factors Globalisation and resulting external stability- exchange rates/CAD/FD External Shocks- oil prices and international business cycle International organisations and trade agreements

11. The Final Summary  Pages 340-355