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- Will the shift of SRAS to the right tend to make theequilibriumquantityandpricelevelhigherorlower? What about a shift of SRAS to the left?The government of Australia has embarked on various policies in order to reduce the severity of COVID 19 on the economy. Has COVID 19 caused economic expansion or a recession? Explain your answer using at least two economic effects on the economy of AustraliaWhat is the role of aggragate demand in eliminating the GDP gap?
- Calculate autonomous spending with the given info C = 400 + 0.6YFinally, so can you summarize and contrast what you think happened to Agg. Demand during 2020 versus 2021 (better define Agg Demand)? (covid pandemic)Analyse two possible factors that will lead to GDP overstating the level of economic welfare