Answer the following questions

4. What is the difference between nominal and real economic variables, and why is this difference important for monetary policy? ~ 5. According to Governor Macfarlane in his speech on Australian monetary policy in the last quarter of the 20" century, what were the main steps in the transition from monetary targets to inflation targets in Australia? And what was the economic reasoning behind this transition?~ 6. Explain the difference between a hierarchical and a dual mandate for a central bank. What kind of mandate is specified for the RBA by the Reserve Bank Act of 1959? According to the original Statement on the Conduct of Monetary Policy (1996) why is the policy mandate stipulated in the Act consistent with an inflation target?~