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Explain the trends and relationships between inflation

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(i). Explain the trends and relationships between Inflation, Unemployment and Real GDP growth using a Business Cycle.

(ii). "The Australian government is considering measures to grant significant tax rebates to big entrepreneurs/Companies that are spending big dollars on Research & Development (R&D)".

Analyse the possible impact of this measure on the Australian GDP. Use a suitable diagram/model framework (preferably AD - AS model) to explain your answer.

(iii). Suppose that the government is proposing to spend 5 billion in the next budget to improve and extend the national broadband network including a better mobile phone coverage to regional Australia. Explain the short-run and long-run impact of this proposal on the economy using the AD-AS model framework.

Reference no: EM131355057

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