Consider the following article below.

1. According to the article, Australian GDP growth decreased by 0.3% in the March 2020 quarter.Using the expenditure approach to GDP, state the four components of GDP and identify how each component contributed to the result.(4 marks)
2. should the authorities implement expansionary or contractionary fiscal and/or monetary policy? Explain what effect this policy might have.

Australia in recession with first quarter of negative growth in nine years

By Shane Wright (Sydney Morning Herald, 3 June 2020)

Treasurer Josh Frydenberg says Australia is in recession after the economy was battered by bushfires and the early stages of the coronavirus pandemic to shrink by 0.3 per cent in the March quarter, the first quarter of negative growth in nine years.

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The popular definition of a recession is consecutive negative quarters of growth, and economists, the Treasury and the RBA are all resigned to the June quarter showing the economy experiencing its worst three-month period since the 1930s.

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The Australian Bureau of Statistics on Wednesday said a collapse in consumer spending on services and falls in government capital expenditure and household construction contributed to the March quarter result.

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Total business investment dropped by 0.4 per cent while capital spending by governments dropped by 0.7 per cent.

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Net trade contributed 0.5 percentage points to the result, but this was largely due to a drop of 6.2 per cent in imports.

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(Source:www.smh.com.au/politics/federal/australia-on-track-for-recession-with-first-quarter-of-negative-growth-in-9-years-20200603-p54z0f.html