Country facing a lost decade of growth, ANZ warns By Shane Wright (Sydney Morning Herald, 21 January 2020)

Australia is facing a lost decade of economic growth, ANZ has warned, that will see living standards slip and wages grow modestly while putting pressure on the Morrison government's plan for a string of budget surpluses.

ANZ head of Australian economics David Plank said growth through the current decade would average 2.6 percent, with that tipped to fall to between 2 and 2.5 percent across the 2020s. He said that level of growth, lower than both estimated by the Reserve Bank and the federal Treasury, would be driven by tepid non-mining business investment, weak productivity, and household consumption held back by high debt and modest wage increases.

Australian households, despite record levels of wealth due to high house prices, were carrying record levels of debt that would crimp their spending plans.

In its December budget update, Treasury forecast economic growth to lift to 2.75 percent through 2020-21 and then climb to 3 percent for the next two years. That level of growth is expected to help drive down unemployment and push up wages.

Require: What type of fiscal policy and monetary policy would be undertaking in 2020 to affect aggregate demand and the economy to go to full employment? Demonstrate your answer in a diagram.

(Source: https://www.smh.com.au/politics/federal/country-facing-a-lost-decade-of-growth-warnsthe-anz-20200121-p53tck.html)