Consider the information below for Country A and answer the questions:

"Unemployment has been rising from 6.1 per cent to 6.5 per cent since the new government was elected a year ago.In line with the outlook for the labour market, the outlook for underlying inflation has been revised down a little, inflation is still expected to be subdued (weak), consistent with some spare capacity. Wage growth remaining below 0.5percent, one of the slowest on record.

Mining investment in Country A has been falling rapidly. Forecasting mining investment to contract by a huge 25.2 per cent this financial year and by an even bigger 30.5 per cent in the coming year. Unfortunately, the non-mining investment has not been able to pick up the slack.At the moment, it's hard to see how non-mining investment and economic growth will shoot up so strongly, particularly when household spending lacks so much confidence and at the same time the currency remains strong.Country A's exports continue to decline as the globaleconomy is experiencing a severe downturn.If this continues, Country C would require further large fiscal packages and significant easing in monetary policies.

The Central Bank has cut the official cash rate to a record low 1.5 per cent and is insisting it may cut again.The government will cut the corporate tax rate from 30 per cent to 28.5 per cent for all businesses and will also remove the fringe benefits tax on electronics items.

Refer to the above article:

4. a) Based on the above commentary, use the AD/AS Model depicting whetherCountry A's economy is currently operating below, at or above full employment. Justify your answer with reference to the components of Aggregate Demand. Label the axes and curves".

4. b) Comment on the key macroeconomic indicators and conclude which phase the economy is in

4. c) According to the commentary, what type of fiscal policy is the government undertaking? Is this discretionary or automatic fiscal policy? How will this fiscal policy affect the Aggregate Demand components and affect the AD, SAS and/or LAS curve?