Using the dynamic aggregate demand and aggregate supply model, illustrate and explain the impact of following policy decisions on income, unemployment and inflation in Australia in both short-run and long-run. Part (a) Due to the ongoing Omicron variant induced COVID-19 pandemic, the government is reducing the time gap for taking the booster shot for people inoculated with two doses of COVID-19 vaccine.  Part (b) The building and construction industry in Australia is suffering from some logistical issues with imported construction materials as a fallout of the COVID-19 pandemic. The Reserve Bank of Australia (RBA) is closely watching the situation and contemplating a suitable policy action. Explain and illustrate what policy stance should the RBA take and how would that remedy the problem.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Using the dynamic aggregate demand and aggregate supply model, illustrate and explain the impact of following policy decisions on income, unemployment and inflation in Australia in both short-run and long-run.

Part (a)

Due to the ongoing Omicron variant induced COVID-19 pandemic, the government is reducing the time gap for taking the booster shot for people inoculated with two doses of COVID-19 vaccine. 

Part (b)

The building and construction industry in Australia is suffering from some logistical issues with imported construction materials as a fallout of the COVID-19 pandemic. The Reserve Bank of Australia (RBA) is closely watching the situation and contemplating a suitable policy action. Explain and illustrate what policy stance should the RBA take and how would that remedy the problem.

Question 1
Using the dynamic aggregate demand and aggregate supply model, illustrate and
explain the impact of following policy decisions on income, unemployment and
inflation in Australia in both short-run and long-run.
Part (a)
Due to the ongoing Omicron variant induced COVID-19 pandemic, the government is
reducing the time gap for taking the booster shot for people inoculated with two
doses of COVID-19 vaccine.
Part (b)
The building and construction industry in Australia is suffering from some logistical
issues with imported construction materials as a fallout of the COVID-19 pandemic.
The Reserve Bank of Australia (RBA) is closely watching the situation and
contemplating a suitable policy action. Explain and illustrate what policy stance
should the RBA take and how would that remedy the problem.
Transcribed Image Text:Question 1 Using the dynamic aggregate demand and aggregate supply model, illustrate and explain the impact of following policy decisions on income, unemployment and inflation in Australia in both short-run and long-run. Part (a) Due to the ongoing Omicron variant induced COVID-19 pandemic, the government is reducing the time gap for taking the booster shot for people inoculated with two doses of COVID-19 vaccine. Part (b) The building and construction industry in Australia is suffering from some logistical issues with imported construction materials as a fallout of the COVID-19 pandemic. The Reserve Bank of Australia (RBA) is closely watching the situation and contemplating a suitable policy action. Explain and illustrate what policy stance should the RBA take and how would that remedy the problem.
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