Question: III. Use the Aggregate Demand and Aggregate Supply diagram provided (Diagram 1) to identify the current position (range) of Australia's economy. Justify your decision? The

III. Use the Aggregate Demand and Aggregate Supply diagram provided (Diagram 1) to identify the current position (range) of Australia's economy. Justify your decision?

The outbreak of the coronavirus (COVID19) in Australia has created highly uncertain economic circumstances and conditions for households, firms and governments. Analyse the current state of Australia's economy and the strategies required to manage its macroeconomic performance. In your response refer to each of the following questions: i. Outline two (2) key economic indicators and how each can be used to assess the current state of the economy. (4 marks) ii. Describe the changes in Australia's economic performance between August 2018 and July 2020. (4 marks) iii. Use the Aggregate Demand and Aggregate Supply diagram provided (Diagram 1) to identify the current position (range) of Australia's economy. Justify your decision? (6 marks) Diagram 1 Price AS level Vertical Intermediate Horizontal Real + GDP YFE iv. Recommend two (2) strategies that could be used by the government to address the current economic situation. (6 marks)

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