Dispute between Ukraine and Russia caused Australia to restricted trade contacts with Russia. The Australian government has prohibited the importation of Russian goods into the country, including oil, gas, coal, wheat, and a variety of other commodities, causing commodity prices to skyrocket. Aside from the unprecedented rise in global oil prices, Russia is also the world's largest wheat, metals and fertiliser producer,making basic needs such as fuel, bread, and other commodities more expensive in the near future.

Recommendation:

Because of the impacts of the Russian-Ukrainian war, oil and energy prices have risen, causing commodity prices to rise. As a short-term solution, I believe the government might offer some sort of rebate to assist drivers cope with rising gas prices or lower gasoline taxation to make it cheaper. However, this sort of solution may only be temporary, as cutting gas taxes for an extended period of time may result in less money for road maintenance. In the long run, however, I advocate viewing this as a reflection of how heavily the country is reliant on foreign oil supply and at the mercy of international oil markets. Rather than lower gasoline prices, I believe that an alternative fuel must be developed that appeals to vehicle fleet managers and customers.

What is the Phillips Curve after the recommendations is implemented ?

Illustrate and explain the potential impact on the economy - inflation, unemployment, economic activity - as a consequence of the recommendations