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You are the policymaker at the Reserve Bank. Economic growth is growing similar to longterm trend. The government informs says that the election is due
You are the policymaker at the Reserve Bank. Economic growth is growing similar to longterm trend. The government informs says that the election is due in a year, government spending will significantly increase now.
Given your knowledge of Aggregate Supply & Demand, fiscal policy and the role of the RBA to maintain inflation at between 23% on average over the business cycle, what advice would you give?
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