Microeconomics – Elasticity & Its Applications

Elasticity measures how much buyers and sellers respond to changes in market conditions. Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Determinants … Continue reading Microeconomics – Elasticity & Its Applications

What does income splitting mean for Australian households?

Income splitting is when double income households are able to spread their collective income over both incomes, considering you are self-employed. In order to lower each under the tax free thresholds. This means a family can gain more savings from income tax from having two incomes. The use of these arrangements are used to create … Continue reading What does income splitting mean for Australian households?

Monetary Policy and the Reserve Bank of Australia

  The Reserve Bank of Australia (RBA) was created by the Reserve Bank Act 1959 as “Australia’s central bank, which is responsible for managing the Commonwealth’s monetary policy, ensuring financial stability, and printing and distributing currency.” (Reserve Bank of Australia, 2011) This article in explaining the premise of the RBA and monetary policy will consider … Continue reading Monetary Policy and the Reserve Bank of Australia