ques 16 is

Consider the following article below.

According to the article, Australian GDP growth decreased by 0.3% in the March 2020 quarter.Using the expenditure approach to GDP, state the four components of GDP and identify how each component contributed to the result.(4 marks)

Australia in recession with first quarter of negative growth in nine years

By Shane Wright (Sydney Morning Herald, 3 June 2020)

Treasurer Josh Frydenberg says Australia is in recession after the economy was battered by bushfires and the early stages of the coronavirus pandemic to shrink by 0.3 per cent in the March quarter, the first quarter of negative growth in nine years.

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The popular definition of a recession is consecutive negative quarters of growth, and economists, the Treasury and the RBA are all resigned to the June quarter showing the economy experiencing its worst three-month period since the 1930s.

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The Australian Bureau of Statistics on Wednesday said a collapse in consumer spending on services and falls in government capital expenditure and household construction contributed to the March quarter result.

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Total business investment dropped by 0.4 per cent while capital spending by governments dropped by 0.7 per cent.

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Net trade contributed 0.5 percentage points to the result, but this was largely due to a drop of 6.2 per cent in imports.

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Question 18 Not yet answered Marked out of 4.00 Flag question Given the information provided in Question 16, explain the impact of the negative growth in GDP on unemployment, inflation and wages. According to the article, which of the following AD/AS models (A or B) best describes the Australian economy? LAS AD L GDP L (A) Type here to search e DELLQuestion 15 Not yet answered Marked out of 7.00 P Flag question Consider the AD. SAS and LAS curves shown in the following diagram. Determine whether this economy is currently in a recession or a boom and explain why. Is this situation referred to as a recessionary gap or as an inflationary gap? Would you expect relatively high or low values for GDP, unemployment and inflation? P 130- LAS SAS 120- 110- 100- 90 80 AD L - GDP 0.9 10 1.1 1.2 13 Av B /