In Australia at present, the level of unemployment is around 3.5%, a figure considered close to 'full employment'. At the same time, inflation is to be above that which is considered sustainable. As such, the Reserve bank of Australia has embarked on a series of interest rate rises as part of its monetary policy. a. Discuss why an unemployment rate of 3.5% would be considered as close to full employment. Your answer should focus on the types of unemployment that might exist in the context of this definition. ( 3.5 marks) b. Using the AD-AS model (select from the options contained in this question), detail how a rise in interest rates would affect the level