c) In its announcement, the RBA Governor stated "The Board is committed to returning inflation to the 2-3 per cent range over time." As part of your Policy Brief, explain what is meant by the inflation target and how does an inflation target contribute to good economic management? Based on the news updates that we discussed in our lectures and tutorials throughout this course, what are some factors that are currently contributing to inflationary pressures in Australia and globally, and which part of the AD-AS model are they mostly affecting? (2-3 sentences) d) You have noted that the RBA, like the Treasury, is also monitoring Australia's unemployment rate. The following table provides labour market data from the Australian Bureau of Statistics (ABS). At the start of the pandemic, job losses and rising unemployment across the economy were a concern for both the RBA and Treasury. Your colleague has calculated that the pre- pandemic unemployment rate (in March 2020) was 5.2%. Using the data in the table, how high did Australia's unemployment rate reach throughout the worse of the pandemic and in which month did this occur? To support your calculations, include all your working and the formulas you applied to compute the unemployment rate. For this labour market data, round off your answers to 2 decimal points. When you obtain your answers, write a clear sentence that addresses the specific questions that have been asked. When looking the unemployment rate, what other labour force indicator would you recommend also looking at to fully understand the impact of the pandemic on the economy? Labour Force Statistics, Australia (March 2020 to August 2022) Employed (000s) Unemployed Labour force Civilian population aged 15 [000s) (0DOs) years and older (000s) Mar-20 13,002.2 719.4 13,721.6 20,831.0 Apr-20 12,401.5 839.0 13,240.5 20,838.8 May-20 12,125.0 918.7 13,043.8 20,846.7 Jun-20 12,368.8 986.4 13,355.2 20,854.5 Jul-20 12,469.7 1,007.5 13,477.2 20,851.9 Aug-20 12,626.1 921.2 13,547.3 20,849.3 Sep-20 12,586.2 930.2 13,516.4 20,846.8 Oct-20 12,753.1 950.2 13,703.4 20,849.4 Nov-20 12,839.8 939.8 13,779.6 20,852.1 Dec-20 12,866.9 907.3 13,774.2 20,854.7 Jan-21 12,895.8 877.8 13,773.7 20,861.0 Feb-21 12,982.7 805.0 13,787.7 20,867.3 Mar-21 13,060.4 783.4 13,843.8 20,873.5Apr-21 13,021.1 748.2 13,769.4 20,883.7 May-21 13,124.7 704.0 13,828.7 20,893.9 Jun-21 13,161.3 682.4 13,843.7 20,904.2 Jul-21 13,159.8 641.2 13,801.1 20,909.1 Aug-21 13,021.8 620.2 13,642.0 20,914.1 Sep-21 12,883.5 628.7 13,512.3 20,919.1 Oct-21 12,849.3 708.6 13,557.9 20,939.8 Nov-21 13,233.3 638.7 13,872.0 20,960.6 Dec-21 13,302.9 579.2 13,882.1 20,981.3 Jan-22 13,337.6 582.9 13,920.5 21,021.2 Feb-22 13,448.6 565.9 14,014.5 21,061.1 Mar-22 13,486.5 554.4 14,041.0 21,101.0 Apr-22 13,477.5 542.5 14,020.0 21,104.4 May-22 13,524.6 549.2 14,073.9 21,107.8 Jun-22 13,599.6 493.8 14,093.4 21,111.1 Jul-22 13,558.6 473.6 14,032.2 21,128.5 Aug-22 13,592.1 487.7 14,079.8 21,145.9 Source: ABS, Labour Force Australia, Seasonally-adjusted data series. https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest- release (Accessed 21 September 2022) e) A new colleague working with you on the unemployment statistics for this Policy Brief and is feeling a bit puzzled by the labour market data. They tell you: "I don't understand how sometimes the number of people in employment goes up at the same time that the unemployment also goes up. For example, between July 2022 and August 2022, the number of people in employment increased from 13,558,600 to 13,592,100, but the unemployment rate didn't fall. Instead, it rose from 3.4% to 3.5%. If there are now more people with jobs, shouldn't the unemployment rate go down? How is this possible ?" Firstly verify whether your colleague is correct when they say that the unemployment rate increased between July 2022 and August 2022. Next, help your colleague understand how it is possible for the unemployment rate to rise even though the number of people with jobs also rose. Explain what other economic indicator needs to be monitored, and provide your calculation of the changes in this other indicator that occurred between July 2022 and August 2022. To support your calculations, include all your working and the formulas you applied to compute these labour market statistics. Round off your answers to 2 decimal points. When you obtain your answers, write a clear sentence that addresses the specific questions that have been asked