Economic growthThe impact of the global financial crisis on economic growthDue to the global recession, Australia's GDP was expected to contract by 0 .5% in 2009-2010 compared to 2009-2010. to other advanced economies which are expected to contract by 3.75% in the same year. Although the reductions in GDP are minor, it is clear that Australia is not immune to the global recession, although it is better placed and expected to perform better than almost all other economies in the world. OECD. The global recession also triggered a decline in household wealth and a disruption in consumer confidence, with consumption expected to contract by 0.25% in 2009-2010. redistribute income and reduce fluctuations in the economic cycle, influencing the overall level of economic activity. The policy uses the Commonwealth Government's budget to achieve the Government's economic objectives, including changing the level of public expenditure and taxation, manipulating the level of economic activity and thereby influencing economic growth. In response to the global financial crisis, the Australian Labor government had implemented a budget deficit where total government spending exceeded total revenue, with expectations of $338.2 billion in spending and $291 billion in revenue. for 2009-10. The Australian Government's revenue and expenditure for 2009-10 is shown below in Figure 1.1. Figure 1.1 Australian Government Taxation and Spending Source: http://www.budget.gov.au/2009-10/content/overview/download/Budget_Overview. pdfFrom Figure 1.1 it is clear that since February 200...... middle of article......Works citedDixon, T 2009, Australia in the economy, Pearson Australia, Melbourne.http:/ /www.budget.gov.au/2010-11/content/overview/download/Budget_Overview.pdfhttp://www.budget.gov.au/2009-10/content/overview/download/Budget_Overview.pdfhttp://www .budget.gov .au/2010-11/content/speech/download/speech.pdfhttp://www.westpac.com.au/docs/pdf/aw/Economics-research/2010BudgetReport.pdfhttp://www.anz .com/resources /e/1/e1fdfb804e8f8b3a8e97ce6073e41bfe/Forecasts-20102105.pdf.pdf?CACHEID=af9ea3804e8f896cbe1dffe6f59f1df3http://www.leadingedge.com.au/news/statistics.phphttp://www.treasurer.gov. au/DisplayD ocs.aspx?doc =australian_economy/2009/attachments/001/strength_and_resilience_transcript.htm&PageID=013&min=wmshttp://www.budget.gov.au/2009-10/content/myefo/download/MYEFO_2009-10.pdfhttp:// www.abs.gov.au/http://www.alp.org.au/http://www.rba.gov.au/