Stabilisation and Sustainable Growth (HSC SSCE Economics): Flashcards

Economic cycles of expansion and contraction

Moderate economic swings, create predictable growth patterns

Monetary policy and fiscal policy

Reserve Bank of Australia (RBA)

Domestic market operations (DMOs)

Economy growing too rapidly with inflationary pressures building

Controls inflation but increases cyclical unemployment

Economic growth weak and unemployment rising

Reduces unemployment but may increase inflation

6-18 months