Draw an aggregate demand and aggregate supply graph showing the long-run equilibrium.

"Real household disposable income isdecreasing in year 2021-22. This decrease will likely discourage consumers from purchasing higher-priced products, potentially threatening the industry. Also this will negatively affect the economic growth, and employment in Australia".

Using the basic (static) aggregate demand and aggregate supply model, analyse the impacts on the Australian economy in the short and long run of the statement given above. 3 marks