"Household disposable income rose significantly over the two years through 2020-21, despite thesignificant economic shock caused by the COVID-19 pandemic. n addition, Australians have drawn onsavings to support consumption expenditure during the pandemic".

a)Draw the aggregate expenditure model in the equilibrium. Then, analyse and explain the impacts ofrising disposable income using the aggregate expenditure model to explain what might have happened.

b)Other than disposable income, list and explain two other factors affecting the aggregate expendituremodel's expenditure components (consumption, investment, net exports).