COVID-19 resulted into many economies in the world including Australia going into a recession in 2020 as
Question:
COVID-19 resulted into many economies in the world including Australia going into a recession in 2020 as demonstrated in the following article.
Six graphs that explain Australia's recession.
- https://www.abc.net.au/news/2020-09-03/coronavirus-recession-in-australia-six-graphs-explain/12624250
While some economies are still struggling to recover completely, Australia has performed well recovering from the recession due to the timely and effective policy measures. The government adopted effective fiscal stimulus measures to support the economy. Not only the economy recovered from the recession, the federal government also delivered a surplus budget in May 2023 (links provided below).
- https://budget.gov.au/content/overview/download/budget_overview-20230511.pdf
- https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release
- https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release
- https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
Use the AD (Aggregate Demand) model to show the impact of the decline in consumption and investment caused by COVID-19 on the Australian economy in 2020. Show how the fiscal stimulus measures adopted by the Australian government since then helped the economy to stabilise in terms of economic growth and employment in 2023. On the same diagram, illustrate and explain the process of the multiplier.
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey