Background: "Australia has performed better on the health and on the economic fronts than nearly any other country in the world ...We have now turned the corner and a recovery is under way". Josh Frydenberg, Australia's treasurer. (2 Dec 2020).

Topic: Given the above statement: Your manager has asked you to use the key Macroeconomic Variables and their relevant factors, apply them to the AD/AS Model to assess which phase the Australian economy is in, and then comment on the key macroeconomic indicators.

Please prepare a memo to brief your manager on the current Australian economy, including the AD/AS Model