Reference no: EM132606855
Read the following modified extract and use the information to answer the following questions:
The Australian officials said the Gross Domestic Product would contract 7 percent in April -June, continuing the negative economic growth trend in the previous three months.
The government had massive stimulus spending to fight the pandemic, which has ravaged global trade and forced the shutdown of much of the country earlier in the year, crippling the economy.
The re-imposition of a six-week lockdown on five million people in Melbourne, the second-biggest city, has added to the struggles for a country already reeling from a prolonged drought and massive bushfires before the disease struck.
The A$289 billion in economic stimulus include support for workers, businesses and retirees.
(a) Using appropriate evidence from the article, explain the impact on each of the four GDP expenditure components.