TAKE NOTE, STRICTLY FOLLOW THE FOLLOWING:

• PROVIDE DETAILED EXPLANATION
• NO PLAGRISM PLEASE
• FOLLOW INSTRUCTIONS BELOW
• PROVIDE REFERENCES

In May 2022, the Reserve Bank of Australia announced it had increased the cash rate from 0.10% to 0.35%.

1. Discuss the RBA's role in the Australian economy and why it has implemented the change.
2. Use the aggregate demand-aggregate supply model to explain the impacts of this change on the overall Australian economy.

Use data, diagrams and relevant evidence from the literature to support your answer.

Useful link:https://www.rba.gov.au/statistics/cash-rate/