Discuss the trend in consumer expenditure and explain the effect of declining consumer spending on the equilibrium output using Keynesian Cross model.

A carbon pricing scheme (CPS), commonly termed as a ‘carbon tax’ was introduced by the Gillard Government in 2011 and came into effect on 1 July 2012. Under the legislation, the biggest carbon-emitting companies in Australia would pay a price for each tonne of carbon. Then Opposition Leader Tony Abbott termed the intended tax as a “toxic tax from a government with the Midas touch in reverse”. Gillard’s CPS was in operation until it was replaced on the 17 July 2014 by the Abbott gover...