Household consumption expenditure is the largest component of GDP (expenditure method).Lack of consumer confidence over the last two years since the outbreak of COVID-19, is alleged to be the main reason for slower economic growth.

a)Discuss the trend in consumer expenditure from 2016 to 2021.

b) Explain the effect of the current COVID-19 disaster payment provided by the NSW State government on consumer spending, equilibrium output and employment using the Keynesian Cross model.