Due to the severity of COVID 19 on households, the government of Australia announced Job Keeper Allowances to be given to the labour force that had lost employment.

1. Examine the impact of Job Keeper Allowances during the COVID 19 recession onAustralia's economy.

2. Examine two reasons that could explain why the government of Australia terminated Job Keeper Allowances though COVID 19 still impacted Australia.

3. Assume the government of Australia spent AUD50 billion on allowances given to Job Keeper beneficiaries. Assume that despite the family financial stress, 15% of the Job Keeper Allowances was the total beneficiary savings. Further, assume all other factors remain constant. Calculate the total effect of the Australian government Job Keeper Allowance spending on aggregate demand for the economy.