Using the Aggregate Demand and Aggregate Supply Model did the 2019/20 cause economic expansion or economic contraction in Australia. Name at least three sectors that were affected by the bushfires and examine the impact of the bush fires to the economy of Australia. Employ the Aggregate Demand and Aggregate Supply Model to explain the benefits of the Australia government AUD2 billion grant to the economy.
The Australia Federal Government established a AUD 2 billion grant to help sectors affected by the bushfires to get the support they needed to recover. Use the Aggregate
- Using the Aggregate Demand and Aggregate Supply Model did the 2019/20 cause economic expansion or economic contraction in Australia. Name at least three sectors that were affected by the bushfires and examine the impact of the bush fires to the economy of Australia.
- Employ the Aggregate Demand and Aggregate Supply Model to explain the benefits of the Australia government AUD2 billion grant to the economy.
1) The demand curve shows the contraction in the Australian Economy due to lesser production, investment, income generation and demand. The direct effects of the bushfires reduced GDP growth across the December 2019 and March 2020 quarters by around 0.2 percentage points, with some recovery in the June quarter and beyond.
The bushfire affects the real state, manufacturing and service sector most as the woods used for certain tasks aren't available and caused the industry to fall.
Step by step
Solved in 2 steps
