- Australia is a mixed economy.
- Mixed economy means includes private freedom and combined with centralized economic planning and government rules.
- Government Structure:
- Australia is a mixed economy which includes private freedom and combined with centralized economic planning and government rules. Having the government being involved helps the circular flow of goods, services and money. For example one way going through the circular flow is when the government gives payments to firms then they pay these as factor payments to market resources which becomes household income, household spending than revenue. However, having government regulations also leads to a decrease in the supply. If there are more regulations than the supply will go down because producers have more restrictions such as not allowing producers to increase the price of a product.