How will impact aggregate demand

Reference no: EM133202852 , Length: Words Count:650

Assignment:

Topic/s of Primary Focus: GDP, Unemployment and Inflation Aggregate Demand and Aggregate Supply Money and Monetary Policy

(May also include content from previous topics.) Task:

Suppose that the Reserve Bank of Australia (RBA) decided to raise the cash rate target. Explain how changing the cash rate target will end up impacting the components of expenditure (C, I, G, NX), how that will impact Aggregate Demand, and what impact that would have on price level (or inflation) and GDP.

Include an Aggregate Demand-Aggregate Supply diagram within your answer.

Reference no: EM133202852

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