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Explain two phases of the business cycle

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Question 1: Explain two phases of the business cycle. Discuss the business cycle indicators. Explain why do changes in total spending cause the level of GDP to change? How does GDP gap relate to the actual GDP in a particular period?

Question 2: Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the shifts in aggregate demand and aggregate supply curves. Apply the AD-AS model to the two types of inflation.

Question 3: Explain the modern monetary policy implementation in Australia. Analyse how government can combat a recession using a discretionary fiscal policy.

Question 4: How is a country's exchange rate determined? Explain four important sources of shifts in the supply and demand curves for foreign exchange. What is the economic impact of exchange rate fluctuations?

Reference no: EM131091527

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