The article says that international supply-chain constraints have now eased. In terms of aggregate supply (AS), explain
Fantastic news! We've Found the answer you've been seeking!
Question:
- The article says that international supply-chain constraints have now eased. In terms of aggregate supply (AS), explain how these supply-chain constraints would have affected the macroeconomy during the pandemic and lockdowns. (You do not need to draw a diagram.) (2 marks)
- After the lockdowns were eased increased consumption spending was a key driver of economic growth. Explain the effect this had using the AD/AS model. (You do not need to draw a diagram.) (2 marks)
- At the end of the article, it is stated that "GDP growth will come to a standstill next year" because of higher interest rates. Identify the corresponding stance of monetary policy and explain the effect of higher interest rates on the macroeconomy. (3 marks)
- Source: https://www.abc.net.au/news/2022-12-07/gdp-increases-0-6-per-cent-in-september-quarter/101742812)
Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date: