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Please i want to solve the whole problem Paragraph QUESTION 2 (33 marks) Refer to the economic data for the Australian economy in Table 4,

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Please i want to solve the whole problem

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Paragraph QUESTION 2 (33 marks) Refer to the economic data for the Australian economy in Table 4, then answer the questions below. Table 4 Data Dec 2018 Mar 2019 Jun 2019 GDP (change per quarter) +0.8% +0.5% +0.1% GDP Annualised rate 2.4% 1.7% 1.0% CPI (per annum) 1.7% p.a. 1.5% p.a. 1.1% p.a. Jun 2019 Jul 2019 Aug 2019 Unemployment rate 5.0% 5.5% 5.9% Business Confidence Index 51.2 49.5 47.8 Consumer Sentiment Index 101.2 99.6 96.7 Retail Sales +0.4 +0.1 -0.1 (Sources: ABS & RBA) a Identify a possible policy change in monetary policy for the economy and explain 3 reasons why (note: you must select either a rise or a fall in the official cash rate and the following questions (c) - (f) should be consistent with your choice in this question). (4 marks) b. Explain how the RBA will effect this change in interest rate by outlining the transactions that will take place. (3 marks) C. Construct a graph of the impact on the economy if the policy change you suggest in (b) takes place. Indicate which range of the curve (Keynesian, Intermediate or Classical) that this curve shift occurs. Label all components (5 marks) ii. Explain the graph and why it is in the range you suggest. (4 marks) d. Explain how or why the economy will be impacted as you suggest in 2.b. and 2.d. by addressing the impact on each component of aggregate demand. (7 marks) e. The Australian cash rate (interest rates) are already at historically low levels and recently have had minimal positive impact on the economy. What alternative policies to a monetary policy change are available? Who would enact this policy? (2 marks) f. What would this alternative policy decision involve? How would it look to impact on the components of aggregate demand (hence GDP)? (8 marks)

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