Q3 - Modules L7. Inflation and the Phillips Curve[Suggested word count for Q3: 400 to 500 words]In 2021, (almost after the COVID-19 related lockdowns were relaxed in Australia) Australianconstruction industry was facing high demand resulting into a boom in the construction ofnew housing. This can partly be attributed to the generous economic stimulus packagesgiven by the government (for instance, see the articles below).●Australia launches $470 million stimulus package for construction sectorhttps://www.reuters.com/article/us-health-coronavirus-australia-idUSKBN23B02XPost Pandemic Construction Boomhttps://slattery.com.au/wp-content/uploads/2021/12/Slattery-National-Market-Update-December-2021.pdfUsing the AD and Phillips curve model, show the state of the Australian economy assuminghaving a stable target inflation of 2% prior to COVID-19. Now, in the same model, show andexplain the impact of the above-mentioned construction boom on employment andinflation levels in Australia resulting in the current state of the economy (2022- 2023).

The Phillips curve is an economic concept that proposes a negative correlation between the…

Using the AD and Phillips curve model, show the state of the Australian economy assuming having a stable target inflation of 2% prior to COVID-19. Now, in the same model, show and explain the impact of the above-mentioned construction boom on employment and inflation levels in Australia resulting in the current state of the economy (2022- 2023).

Using the AD and Phillips curve model, show the state of the Australian economy assuming having a stable target inflation of 2% prior to COVID-19. Now, in the same model, show and explain the impact of the above-mentioned construction boom on employment and inflation levels in Australia resulting in the current state of the economy (2022- 2023).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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