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Suppose the Australian economy begins at full employment, but the war in Ukraine increases the costs of production for Australian firms. Holding all other factors

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Suppose the Australian economy begins at full employment, but the war in Ukraine increases the costs of production for Australian firms. Holding all other factors constant, explain how the war in Ukraine impacts the AD-AS model and its impact on the economy. Furthermore, explain the actions the RBA may take to return the economy to full employment, with reference to the money market and AD-AS models. In your answer, consider how these actions would be transmitted to the wider economy. Edit View Insert Format Tools Table 12pt v Paragraph v U v

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