A) if the RBA does not take any action, what would have been the real GDP growth rate and inflation rate in 2020? B) calculate the actual real GDP growth and inflation rate in 2020 C) in the long run, will inflation be expected to rise or fall and why?

When a pandemic strikes the Australian economy, many businesses are temporarily closed, aggregate demand (AD) falls because people are staying at home rather than spending at those businesses. Because those businesses cannot produce goods and services, both of the short-run GDP and the economy's potential GDP, as reflected in the SRAS and LRAS curve, fall as well. Use the following graph to answer these questions. LRAS 2025 LRAS 2019 Price level SRAS2020 SRAS2019 2 5 8 AD 2019 AD2020 with policy AD2020 without policy 452865 493367 509677 Real GDP ($ millions) the DD A does not take. ation what would have been the mal COD accuthe 7