Due to COVID-19, growth in Australia's major trading partners is expected to slow significantly over the next couple of years. Further US-China tariff measures came into effect in the past two years, and trade restrictions appear to be weighing on export orders for some economies. The possibility of trade protectionism escalating further presents a significant downside risk to global growth.

A. Using the expenditure measure of GDP, explain one way in which a decline in the rate of economic growth of Australia's major trading partners may influence Australia's gross domestic product (GDP), current account balance, and the value of the Australian dollar, in the short run. [4 marks]