Using the AD-AS model demonstrate the implications for the economy if the a global recession does emerge at the end of 2023/early 2024.

Illustrate and briefly discuss 3 scenarios using the three alternate AS curves (as per module 3).

I have 2 scenarios already

Scenario 1: Demand Shock

In this scenario, a global recession leads to a sharp decline in consumer and business confidence, resulting in reduced domestic and international demand for Australian goods and services. This shift in aggregate demand (AD) to the left puts downward pressure on both output and price level. The AS curve remains relatively stable as short-term supply shocks are minimal.

Scenario 2: Supply Chain Disruptions

In this scenario, the global recession disrupts supply chains, leading to shortages in critical inputs and materials for Australian businesses. This causes a negative supply shock, shifting the AS curve to the left. As production costs rise and productivity decreases, output decreases and prices increase, leading to stagflation - a combination of stagnant economic growth and inflation.

but I need to have one more, but If you recommend better scenarios you can suggest them to me

Remember to:

clearly identify your equilibrium positions

the logic/reasoning/assumptions that underlie each AS curve

why you have shifted the curve you have shifted to demonstrate the impact of a global recession on Australia

how the economy transitions to the new equilibrium, and

the implications for inflation, economic activity and unemployment.