Introduction

Unit 1

Unit 2

Unit 3

Unit 4

Useful links

Comnet Economics Classroom

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Unit 3: Economic activity and objectives

The focus of this unit is the study of economic activity in Australia and the factors that affect the achievement of the Australian Government's economic objectives.

Area of Study 2 : Economic objectives and performance in Australia

All governments have specific economic goals or objectives they wish to achieve, and a wide range of aggregate demand and aggregate supply factors can affect the achievement of these objectives. Over time, the objectives will vary in importance as economic circumstances change. In this area of study, students will learn about why these economic goals are significant for the economic wellbeing of the Australian economy and provide an economic `barometer' which may be used to gauge the performance of the Australian economy.

Outcome 2
On completion of this unit the student should be able to describe the trend, and examine the factors affecting the trend, in the performance of the Australian economy over the past decade in terms of the Australian Government's economic objectives.

To achieve this outcome the student will draw on knowledge and related skills outlined in area of study 2.

Key knowledge
This knowledge includes:

  • the meaning and measurement of the Australian Government's economic objectives: - price stability
    - economic growth
    - full employment
    - external stability
    - efficiency in resource allocation, and
    - equity in personal income distribution;
  • the criteria for assessing the performance of the economy in terms of the Australian Government's economic objectives;
  • aggregate demand and aggregate supply factors affecting the achievement of each economic objective;
  • the performance of the economy in terms of the objectives over the past decade;
  • the significance of, and relationship between, the economic objectives.

    Key skills
    These skills include the ability to

  • gather relevant data and information about the Australian Government's economic objectives;
  • define key economic concepts and use them appropriately;
  • construct graphs and tables to represent economic data;
  • describe trends, patterns, similarities and differences in economic data;
  • recognise the limitations of economic data;
  • recognise cause-effect relationships.