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(b) In 2022, (i) the interest rate in Australia and New Zealand was 3.1% and 4.25% respectively, and (ii) their respective GDP growth rate was
(b) In 2022, (i) the interest rate in Australia and New Zealand was 3.1% and 4.25% respectively, and (ii) their respective GDP growth rate was 5.9% and 2.7%. While taking other factors as given, use foreign exchange market and static aggregate demandaggregate supply diagrams to illustrate and explain the joint effect of (i) and (ii) on the Australian real GDP.
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