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| | What is macroeconomics? |
 | | The size of the government sector Size of its revenue and expenditure, size of workforce, value of production Overall production figure < expenditure and revenue figure = transfer payments are not included (unearned income) Crises, interventionist approach and legislation all contribute to growth of the government sector |
 | | ment is higher in Australia than rest of the world à large capital inflow Decline in national savings, savings may fall when economy in recession, households draw on savings to maintain consumption, profits fall and government's budget surplus shrinks Increase in national investment, economy undergoing structural changes may require increases in capital, MER |
 | | Pg 107, 2.14 The CAD and the national accounts |
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