During a recession, the RBA will implement a monetary policy. With the use of an appropriate drawing of money demand and money supply diagram, explain the open market operation process that RBA will undertake in implementing such policy.

Further, explain how this policy will likely have an impact on Qantas financing cost. Also explain how the policy will likely impact household consumption, business investment, the aggregate demand, the GDP and the inflation rate in the economy overall.

As a result of the policy, how do you think the growth rate of the labor cost of Qantas will then be affected?