Problem
Based on this above website please give me the explanation and advise me about the aggregate demand GDP graph;
A. What economic measures (in a general summary form) has the Government announced? List and briefly detail 5 such measures?
B. Choose 3 of what to believe to be the KEY initiatives/announcements, and elaborate on them to detail what their intended impact will be? What will their impact on 'Aggregate Demand (GDP)' be, and hence economic activity & how?
C. The 3 KEY initiatives to have selected above, what components of GDP are they aimed at stimulating; and how are they meant to positively impact that Aggregate Demand component? (so being more detailed, specific & direct here, as to how these initiatives will have their impacts)
D. Recently it has become apparent that inflation is becoming a real problem again globally. Australian inflation rates are higher, and now above the RBA target band. In the USA their inflation rates are double Australia's and Europe's are also high. What is the stated and agreed RBA target band for inflation? What type of inflation essentially is this, that is appearing currently & rising recently?
E. From the 'type of inflation' the listed above, what do believe are 3 KEY causes of this type of inflation? (the key causes select here, should be consistent with your response to part 4 - and what type of inflation responded with).
How do these 3 key causes effect relevant prices and hence inflation?
F. It is generally accepted with inflation on the rise, that Central Banks (and the RBA) will raise interest rates. In fact the RBA has already raised rates this year. With this type of inflation, why do believe the RBA needs to show caution in raising interest rates too quickly? Why do believe interest rates might only have a minimal or 'muted' impact on stemming this type of inflation (as Interest rates are a broad instrument and their impacts are widespread)? So link your response here to the type of inflation you listed above and typically what types of policies are required normally to deal with this type of inflation?