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https://theconversation.com/we-asked-13-economists-how-to-fix-things-all-back the-rba-governor-over-the-treasurer-126283 a) Using the AD-AS framework discussed in class, demonstrate the impacts of spending on infrastructure on output and inflation in the short-run. (4

https://theconversation.com/we-asked-13-economists-how-to-fix-things-all-back

the-rba-governor-over-the-treasurer-126283

a) Using the AD-AS framework discussed in class, demonstrate the impacts of

spending on infrastructure on output and inflation in the short-run. (4 marks)

b) Also explain the likely impact on output in the long-run. (2 marks)

c) Explain why governments borrowing to undertake expansionary fiscal policy

can also make it easier for central banks to conduct expansionary monetary

policy. (4 marks)

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