Question 3 (ii) - Using the AD/AS Model - suggested words (200) (6 marks) *For this question you only need to use the static AD-AS model and consider only the short-run effects of the policy measure(s) examined in Q3(i). Step 1. Draw a fully-labelled AD-SRAS-LRAS diagram of the Australian economy in a state of long-run (LR) equilibrium. (You don't need to use actual values for the price level and RGDP in your diagram, but make sure you do label your equilibrium points). Step 2. Show the impact that the Coronavirus pandemic was having on the Australian economy in 2020 by modifying the diagram you have already drawn. Use a different coloured or annotated AD and/or SRAS and LRAS schedule to illustrate the impact. Outline the change(s) you have made to your diagram and provide an economic explanation for why these changes have occurred. Specifically, comment on the changes to equilibrium RGDP, the general price level and the unemployment rate. Step 3. Illustrate the short-run (SR) effect(s) of the current and ongoing monetary policy measures on the Australian economy by modifying the diagram you have already drawn. Again, use a different coloured or annotated AD and/or SRAS/LRAS schedule to illustrate the policy impact. Outline the change(s) you have made to your diagram and provide an economic explanation for the policy's effect. Specifically, comment on the changes to equilibrium RGDP, the general price level and the unemployment rate