Tuesday, April 07, 2009

Unit 2: Supply side consequences of Government expenditure

The BBC reports that Australia's government is to spend billions setting up a super fast fibre optic network across the country

http://news.bbc.co.uk/1/hi/world/asia-pacific/7986918.stm

a) Why could this be described as a fiscal policy action by the Australian government?
b) Why could this be described supply side consequence?

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