With reference to the IS curve, describe the likely effects on Australian output in

the short run in each of the following circumstances. Provide brief explanations. (2

points each)

a) There is a global pandemic which is much more severe in the rest of the world

than at home.

b) There is an extended stock market rally such that share prices rise well above

their trend.

c) Because of high household indebtedness, household mortgages in Australia are

suddenly deemed much riskier.

d) The (Australian) government decides to withdraw all its funding to universities

around the country.

e) The long-run interest rate rises.