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Answer to Question #13958 in Macroeconomics for Teresa

Question #13958
1. using the AD-AS model show how the Australian economy has continued to expand year after year. What are the macroeconomic dangers facing Australia? That is, are there any dark clouds, be they domestic or international ones, which could threaten the Australian economy?
2. The central bank decided to implement an expansionary policy action. What would you expect to happen to the nominal interest rate, the real interest rate and the money supply? Under what economic circumstances would this type of policy action be most likely appropriate for the country?
3. why has the Australian dollar soared over the past five years? What are the domestic economic repersussions for producers and for consumers? Thank you for your answer and help. best regards!
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