\fPart A: The Aggregate Demand (AD)Aggregate Supply (AS) diagram above shows the Australian economy in longrun equilibrium. Briefly describe all the variables labelled in the diagram, including the initial longrun equilibrium. Also, write down the rate of unemployment in the economy at the current longrun equilibrium? You may use the table below to structure you answer. (4 marks) Rate of unemployment: Part B: The COVID19 pandemic has had a negative impact on the Australian economy. Starting from the initial longrun equilibrium that you identified in Part (a), analyse the shortrun impact of the COVlD19 pandemic on: the average price level, real GDP, and the actual unemployment rate relative to the natural rate of unemployment. In your answer clearly indicate which curve shifted and in what direction and the type of output gap it caused. (Hint! Don't draw a new diagram.) [4 marks] Part C: In the 2021 -22 budget, the Australian government increased its spending on roads, transport, defence and health. Everything else remaining the same, what would be the impact of the government's spending on the shortrun outcomes of the pandemic that you determined part (a)? Explain in detail, including indicating which curve or curves would shift and in what direction. [4 marks] Part D: The Reserve Bank of Australia (RBA) has decreased the target cash rate to help the economy recover from the impact of the pandemic that you identified in part (a). Explain in detail how the decrease in the cash rate would impact real GDP, the average price level and unemployment rate in the long run {Hint! Think about the monetary policy transmission process}