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(a) Explain how each of the following would affect Australia's aggregate demand, the short run and/or long run aggregate supply in the first round? i.
(a) Explain how each of the following would affect Australia's aggregate demand, the short run and/or long run aggregate supply in the first round? i. A rise in foreign incomes ii. An increase in the price of crude oil as a result of an oil shortage (b) In a given period, both growth of supply of labour and growth of labour productivity increase real GDP. However, one results in a decrease in real wage rate, while the other increases real wage rate. Illustrate the outcomes with diagrams
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