Reference no: EM132527380

"China and Australia: how a war of words over coronavirus turned to threats of a trade war" "Canberra's call for an inquiry into the origins of Covid-19 sparked talk of boycotts from Beijing - but any such move could be harmful to both countries"

"The Chinese public is frustrated, dismayed and disappointed with what you are doing now ... if the mood is going from bad to worse, people would think why we should go to such a country while it's not so friendly to China.

"The tourists may have second thoughts. Maybe the parents of the students would also think whether this place, which they find is not so friendly, even hostile, is the best place to send their kids to. So it's up to the public, the people to decide. And also, maybe the ordinary people will" think why they should drink Australian wine or eat Australian beef?"

"The ambassador later said in the interview he hoped there would not be a boycott, and that he was not seeking to "imply" anything through his comments".

(a) Using the AD-AS model examine the potential impact of Canberra's call for an inquiry into the origins of Covid-19 on the Australian economy.