Question 22 (20 points) 3: In response to the economic impact of the the COVID-19 crisis, the Australian 12 13 government is implementing a stimulus package (HomeBuilder), which provides eligible owner-occupiers with a grant of $25,000 to build a new home or 15 substantially renovate an existing home. By November 2020, 18,730 applications were granted or $468,250,000 has been injected to the economy. REQUIRED: 4: A - Suppose that the Australian's government purchase multiplier is 1.5. Estimate the 17 18 impact of this stimulus package. Discuss your answer. [5 marks] 20 B - Instead of using the above package, what would the impact if the government used the same amount for tax cuts? Discuss your answer. [7.5 marks] 5: 22 C - Along with the HomeBuilder program, the government has been paying extra for Pensioners. Assume that all Pensioners has been receiving $468,250,000 - the same amount under the HomeBuilder program, would the stimulus impact of the extra 6: payments for Pensioners be larger or smaller as compared to that of 24 the HomeBuilder? Discuss your answer by applying the expenditure approach of GDP. [7.5 marks]