Question 4 a)What is the desirable level of GDP growth, inflation rate and unemployment rate for Australia and what is the actual level of the current GDP growth, inflation rate and unemployment rate. Fill in the blanks. (3 marks) Question 4 b)What is the key economic problem Australia is facing currently and how does/did RBA response to it (i.e. what type of macroeconomic policy?). How does this policy affect the Aggregate Demandcomponents and affect the AD, SAS and/or LAS curve in the AD/AS Model? (7 marks)

Question 4. c)How does each of the following transactions affect the Current Account balance or the Capital and Financial Account balance in Australia. (5 marks)

Q4c (i)Australian exporter sells wheat to Asian countries. Q4c (ii)An Asian country purchases an Australian farm. Q4c (iii)Australia donates $10 M dollar worth of vaccinations to Fiji. Q4c (iv)US purchases $10M in Australian Government bonds. Q4c (v)Overseas interest payments to a foreign bank from an Australian company.