Similar to wine exports, the export of beef is an important source of income for Australia and contributes significantly to her GDP. In 2020, Brazil was the largest beef exporter in the world followed by Australia, the United States, India and Argentina.

To keep its exports competitive, explain how Australia should manage its inflation. Your discussion should incorporate the following for which marks will be awarded.

- Which authority manages Australia's inflation?

- The target inflation range that the authority will try to keep Australia's inflation rate.

- The effect on Australia's exports and her economy if inflation is not managed well. Your explanation should use the model 'GDP = C + I + G + X - M'.

- The role of money supply and interest rate that are key in managing inflation.